The Cyber Cycle Indicator is based adaptive cyber cycle divergent indicator forex John Ehlers work in ‘Rocket Science for Traders’. The Cyber Cycle Indicator makes an excellent entry and exit indicator with very little lag. Our tests show it can greatly outperform other oscillator indicators like RSI.
Standard indicators like RSI use a fixed number of periods in their calculation which can work well in some markets and poorly in others because markets sometimes trend and other times they trade sideways. The standard indicator would usually be tuned for certain market conditions like bullish trends but this is flawed due to a number of factors. Notice how the adaptive indicator exits earlier than the 40-day exponential moving average and avoids being whipsawed out of large trends like the 40-day exponential moving average. If you would like to see a video of the above adaptive exponential moving average click here. The snapshot below shows the parameter window for the adaptive RSI. Most adaptive indicators with the exception of the adaptive MACD and EMA have the same parameter window but without the option of smoothing as they are moving average type indicators. Each adaptive indicator has a choice of 8 different adaptors to choose from.
This includes trend filters and cycle based adaptors to suit different market types and conditions. Indicators like the RSI also have the option of 5 different smoothers to reduce noise and lag which actually works very well to reduce false signals and improve the responsiveness of the indicator. Watch the video of this proprietary cycle analysis tool fro wave59. Was wondering whether something similar exists for mt4. I have Goertzel cycle indicator but its not quite like this.