EmpiricalFX

Reflex - A new Ehlers indicator

Source: Stocks and Commodities V38

Hooray! A new John Ehlers indicator!
John claims this indicator is lag-less and uses the SPY on the Daily as an example.
He states that drawing a line from peak to peak (or trough to trough) will correspond perfectly with the Asset.
I have to say I agree! There is typically one bar of lag or no lag at all!

I believe this indicator can be used for either entries or exits, but not both.

Entry
1. Entering Long positions at the pivot low points (Stocks and ETFs)
2. Entering Long when the Reflex crosses above the zero lines (Stocks, ETFs, Commodities )

Exit
1. Exiting Long positions at a new pivot high point (Stocks and ETFs)
2. Exiting Long when the Reflex crosses below the zero lines (Stocks, ETFs, Commodities )

In this example, I place a Long order on the SPY every time the Reflex crosses above the zero level and exit when it crosses below or pops my stop loss, set at 1.5 * Daily ATR.
4/6 Wins
+10.76%
For me, that's good enough to create a strategy and backtest on several Indices and ETFs, which is what I have a hunch this will work on.

I think there is a lot of promise from a single Indicator!
Let me know in the comment section if you're able to use this in a strategy.
Release Notes: Updated aesthetic and added 10-bar ATR label
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Comments

Visually, it is not very pleasing, but it looks like it could work fine. I will just have to change how it plots on the chart :) THanks for letting the code open.
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greenmask9 greenmask9
@greenmask9, Columns look good. But I will make circles to plot into the chart when it is descending and making new lows within the period, so I can keep oscillator hidden.
Reply
EmpiricalFX greenmask9
@greenmask9, Good stuff! I can't tailor to everyone's aesthetic, which is why I make (almost) everything open source. If you do re-publish the script, please link back here! <3

I've also changed the plot to "Area" and I like it much more.
Reply
greenmask9 EmpiricalFX
@EmpiricalFX, It is much better. If you see the circles on my chart - this is how I want it to work. I will probably reprogram the histogram a little and use it as it is while printing partial information on the chart in the form of bubbles. I won't republish since I am not adding anything new. Just altering a little what is already there. Plus I will make it a part of my own indicator which is highly adapted to my trading style and wouldn't be useful for others.

I agree the area looks better than a single line. It just needed a little love :)

I won't be making overlay=true version public, but I can send you the code if you'd like.
+1 Reply
Good chart.As usual you are the excellent worker...
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Fantastic! Thanks a lot buddy!
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