Ehlers Decycler Oscillator

This indicator was originally developed by John F. Ehlers (Stocks & Commodities , V.33:10 (September, 2015): "Decyclers").

The idea is still the same as for the Simple Decycler.
Mr. Ehlers suggested to virtually eliminate lag by getting rid of the very low-frequency components. So, he applied the high-pass filter to the simple decycler.

Mr. Ehlers recommended to use two instances of the Decycler Oscillator with different parameters (high-pass filter period and multiplier). As a result, he got the Decycler Oscillator pair.
The first oscillator (red line) has a period of 125 bars, the second one (yellow line) has a period of 100 bars.

The interpretation is straightforward:

• When the yellow line crosses over the red line, a trend reversal to the upside is indicated.
  
• When the yellow line crosses under the red line, a trend reversal to the downside is indicated.