Ehlers Early Onset Trend With Buy/Sell signals

The Ehlers Early Onset Trend With Buy/Sell signals indicator identifies emerging market trends by utilizing John Ehlers' Quotient Transform to detect early-stage directional shifts across multiple timeframes.

Usage

The Usage section focuses on interpreting the oscillator's visual zones to determine trend strength and alignment. The indicator is displayed in a separate pane with six distinct bands representing the current timeframe and two higher timeframes.

• Trend Identification: Green and lime colors indicate bullish momentum, while orange and red colors indicate bearish momentum.
• Multi-Timeframe Analysis: The top three bands represent bullish signals for the current, next higher, and second next higher timeframes. The bottom three bands represent bearish signals for those same timeframes.
• Signal Alignment: When multiple bands in the bullish or bearish sections align (light up), it suggests a high-conviction trend supported by multiple time horizons.
• Buy/Sell Alerts: The script triggers alerts when the current timeframe transitions into a bullish or bearish state, providing potential entry or exit points.

Details

This tool is based on John Ehlers' "Early Onset Trend" concept, which aims to reduce lag found in traditional moving averages. It uses a high-pass filter followed by a SuperSmoother filter to isolate the trend component from cyclic noise. The resulting values are processed through a Quotient Transform—a non-linear transform that limits the output between -1 and +1, making it easier to identify turning points. The "MTF" (Multi-Timeframe) implementation allows traders to see if the local trend is in harmony with the broader market direction.

Settings

• Period: Determines the lookback period for the filter calculations. Higher values result in a smoother but more lagging trend line.
• Q1: The first coefficient for the Quotient Transform, affecting the sensitivity of the "red" internal calculation line.
• Q2: The second coefficient for the Quotient Transform, affecting the sensitivity of the "aqua" internal calculation line.

FAQ

How do I access Ehlers Early Onset Trend With Buy/Sell signals?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

What do the different rows in the oscillator represent?

The rows represent trend status across three different timeframes. The top half monitors bullish conditions, while the bottom half monitors bearish conditions for the current chart timeframe and two progressively higher timeframes.

Can I use this for scalping?

Yes, by using shorter periods or lower timeframes, the Ehlers Early Onset Trend can help identify very early momentum shifts, though users should be mindful of market noise in lower periods.