Even Better Sinewave Indicator

Even Better Sinewave Indicator relies on a strong normalization of the waveform at the output of a modified roofing filter. The modified roofing filter uses a single-pole high-pass filter to deliberately retain the longer-period trend components. The single-pole high-pass filter basically levels the amplitude of all the cycle components that would otherwise be larger with longer wavelengths due to Spectral Dilation. Therefore, when the waveform is normalized to the power in the waveform over a short period of time, the longer wavelength contributions tend to be an indication to stay in a trade when the market is in a trend.

This is a companion discussion topic for the original entry at https://www.optuma.com/kb/optuma/tools/ehlers/even-better-sinewave-indicator