[blackcat] L2 Ehlers RSI with NET

5 ม.ค. 2021

Level: 2

Background

John F. Ehlers introuced RSI with Noise Elimination Technology (NET) in Dec, 2020.

Function

Many indicators produce more or less noisy output, resulting in false or delayed signals. Dr. Ehlers proposed “Noise Elimination Technology,” in Dec, 2020. He introduces using a Kendall correlation to reduce indicator noise and provide better clarification of the indicator direction. This approach attempts to reduce noise without using smoothing filters, which tend to introduce indicator lag and therefore, delayed decisions. With this script, I use his “MyRSI” indicator, which he introduced in his May 2018 article in S&C, by adding some Tradingview pine v4 code for the noise elimination technology. The indicator plots the MyRSI value as well as the value after applying NET to MyRSI. This de-noising technology uses the Kendall correlation of the indicator with a rising slope. Compared with a lowpass filter, this method does not delay the signals.

The technology appears to work well in this example for removing the noise. But note that the NET function is not meant as a replacement of a lowpass or smoothing filter; its output is always in the -1 to +1 range, so it can be used for de-noising oscillators, but not, for instance, to generate a smoothed version of the price curve.

Key Signal

NET --> Ehlers RSI with NET fast line
Trigger --> Ehlers RSI with NET slow line

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 99th 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.

เมื่อวานซืน

เอกสารเผยแพร่

OVERVIEW This indicator implements an enhanced version of Ehlers RSI with NET functionality, providing visual and alert-based signals for potential trading opportunities.
FEATURES
• Calculates Ehlers RSI using price differences over specified periods
• Incorporates NET (Normalized Efficiency Trend) for additional signal confirmation
• Generates visual signals through colored fills and labels
• Provides customizable alert conditions for buy and sell signals
• Supports various price inputs including HL2 (High-Low midpoint)

HOW TO USE

Add the indicator to your chart
Adjust the following parameters in the Inputs tab: • Price: Select the desired price source (default: HL2) • RSILength: Set the period for RSI calculation (default: 14) • NETLength: Set the period for NET calculation (default: 14)
Monitor the indicator lines for trading signals
Enable alerts in the TradingView settings if desired
LIMITATIONS
• Requires sufficient historical data for accurate calculations
• Performance may vary depending on market conditions
• Results should be used in conjunction with other analysis tools

NOTES
• The indicator uses arrays for efficient calculation of Ehlers RSI and NET values
• Visual representation includes colored fills between NET and Trigger lines
• Labels appear automatically when buy/sell signals are generated