Dual Differential Cycle Period

Dual Differential Cycle Period is a VertexFX Indicator for measuring cycle period of current market trend. It returns the current cycle period (in bars or candles) of the current market trend (or market cycle).

It uses the concepts of Digital Signal Processing (DSP) to filter market cycle from chart price. At first step, the price is smoothed using a 3-bar WMA. Then using techniques of Hilbert Transform, the InPhase and Quadrature components are calculated. Then the cycle period is calculated directly from the smoothed InPhase and Quadrature components.

In longer trends, cycle period will be longer value, and in short cyclical trends, it will be a shorter value. Hence its response to market conditions determines its useful as an input to other indicators.

NOTE: This indicator does not generate BUY / SELL signals.

It is used to find the cycle period that can be used as inputs to other indicators. For example, if the current value of the indicator is 18, then it means that the current cycle period of the price is 18 bars, and this value can be used to calculate period based indicators like RSI, ADX, CCI, ATR etc. Since this indicator value changes, we calculate our indicators like RSI dynamically (18-bar) etc instead of a fixed RSI period.

Usage

• Download the attachment.
• Copy it to your company VertexFX  Local VTL Files folder i.e. C:Program FilesCompany Namevtl10Local VTL Scripts
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.