AMFM - Ehlers AM Detector / FM Demodulator

Category: cycle, volatility

Decomposes price action into an Amplitude (AM) envelope representing smoothed volatility and a Frequency (FM) component representing timing/phase using signal processing techniques.

Formula

\begin{cases} deriv = Close - Open \\ AM = SMA(Highest(|deriv|, 4), 8) \\ HL = \text{clamp}(10 \cdot deriv, -1, 1) \\ FM = \text{SuperSmoother}(HL, period) \end{cases}

Inputs

• period (default: 30)

See signal primitives, usage in published strategies and more on WOBR StrategyVerse.