The Simple Deriv Indicator was created by John Ehlers (Stocks and Commodities June 2021 pg 10) and this is a heavily modified version of his original script that changes the buy and sell signals. I did testing with his original settings but they didn't seem to be very profitable for most stocks so I created my own system. This indicator does have a lag though so...
The following oscillator is a twist on momentum, incorporating a 2nd derivative "acceleration" to help determine changes in momentum. Both are plotted directly accessing previous series values rather than using a moving average.
The script has an option to divide so the formula is d(Price)/d(Time), like a derivative. The script also provides options for the user...
This strategy is based on utilizing the 1st, 2nd, 3rd, and 4th time derivatives of the HMA for investing equal percentages of some capital. Entry points are identified by trends in the 2nd, 3rd, and 4th derivatives while exit points are created at either a new entry point or a trailing stop loss %.
![AAPL: Ehlers Simple Deriv Indicator [CC]](https://s3.tradingview.com/7/7icplRII_mid.png "Ehlers Simple Deriv Indicator [CC]")
