Distance Coefficient Ehlers Filter
The Distance Coefficient Ehlers Filter, utilizing Amibroker data feed, is a filtering method developed by John Ehlers. This filter, potentially implemented through AFLs, aims to reduce noise and highlight significant market movements by emphasizing distance-based coefficients in price analysis.
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_SECTION_BEGIN("Distance Coefficient Ehlers Filter");
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//
// Taken from the article in TASC's April 2001 Issue.
//
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Price = (H+L)/2;
CoefLookback = 5;
Coef = (Price-Ref(Price, -1))^2+(Price-Ref(Price, -2))^2+(Price-Ref(Price, -3))^2+(Price-Ref(Price, -4))^2+(Price-Ref(Price, -5))^2;
SumCoef=0;
SumCoefPrice=0;
for(i=0; i < CoefLookback; i++) {
SumCoef = SumCoef + Ref(Coef, -i);
SumCoefPrice = SumCoefPrice + (Ref(Coef, -i) * Ref(Price, -i));
}
DCEF = SumCoefPrice / SumCoef;
Plot(Close, "Close", colorBlack, styleLine);
Plot(DCEF, "NonLinear Ehlers Filter", IIf(Close>DCEF, colorGreen, colorRed), styleLine);
_SECTION_END();