Modified Stochastic

It is widely recognized that market cycles having longer periods have proportionally larger amplitude swings. This is Spectral Dilation. Conventional indicators do not account for this effect. An effective filter is developed to compensate for spectral dilation and applied to the Stochastic Calculation.


This is a companion discussion topic for the original entry at https://www.optuma.com/kb/optuma/tools/ehlers/modified-stochastic