[blackcat] L2 Ehlers Squelch Indicator

Level: 2

Background

John F. Ehlers introuced the squelch indicator in Sep, 2000.

Function

This the squelch indicator code is identical to the Hilbert period code , with the addition of the squelch threshold and the display being implemented as a paintbar -- that is, a bar on the chart being colored, depending on the squelch threshold value.

The Pine v4 code for displaying the squelch control as a paintbar for John Ehlers's article, "Squelch Those Whipsaws," can be reproduced in Tradingview by breaking the steps into separate functions. For example, functions can be written to calculate the "InPhase" and "Quadrature" variables, which can then be used in the calculation of the "Phase," "DeltaPhase," and "InstPeriod."

Although paintbars are not a feature of Tradingview, a similar effect can be displayed in a chart by writing a function to determine whether the period is less than 20. This function can then be displayed in main chart to highlight whether the price is in a trend mode or a cycle mode. The squelch period should also prove useful as an input for neural network predictions.

Key Signal

Plot1--> Highlight Period smaller than Squelch Threshold
Plot2--> Highlight Period smaller than Squelch Threshold

Pros and Cons

100% John F. Ehlers definition translation, even variable names are the same. This help readers who would like to use pine to read his book.

Remarks

The 65th script for Blackcat1402 John F. Ehlers Week publication.

Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.