Phase Accumulator Cycle

Phase Accumulator Cycle Period indicator is a VertexFX clinet side Indicator used for measuring the cycle period of current market trend. It returns 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 the chart price. AT first, the price is smoothed using a 4-bar WMA. It uses one full cycle’s worth of historical data. It is then smoothed by an EMA whose Alpha (smoothing constant) is 0.25. The lag of the Phase Accumulator Cycle indicator is 3 bars. In longer trends, the cycle period will be longer value, and in short cyclical trends, it will be a shorter value. Hence its response to the market conditions, determines its usefulness 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 calculated 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.