Ehlers Filter with the non-linear distance calculation algorithm. The indicator allows tracking the common trend and trade in its direction. Unlike linear Ehlers Filter, it has a shorter delay and allows detecting the direction for entering and closing your positions more accurately.
There are three adjustable parameters:
- Period - calculation period
- Momentum - momentum period
- Applied price - calculation price
Calculation:
EF = SMA(PriceCoeff) / SMA(Coeff)
where
PriceCoeff[i] = Coeff[i] * Price[i]
Coeff[i] = (Price[i] - Price[i-Momentum]) * (Price[i] - Price[i-Momentum])
Price -- Applied price