The Spectrum Derived Filter Bank
The Spectrum Derived Filter Bank was created by John Ehlers (Stocks & Commodities V. 26:3 (16-22)).
IF you want to make your indicators and strategies adaptive to current market conditions, you must first measure the cycle periods that are present in the data. Given that you know the dominant cycle, you can then use that information to dynamically adjust your computations. For example, you can set the observation period of the relative strength index (RSI) to be half the dominant cycle.
