Ehlers Filter Distance Coeff

Ehlers Filter Distance Coeff (EFDC) was authored, not surprisingly, by John Ehlers. The EFDC uses current prices, prior prices and their difference over a time period to calculate its value. The user may change the input (close) and period length. This indicator’s definition is further expressed in the condensed code given in the calculation below.

See also article by John Ehlers
 

How To Trade Using Ehlers Filter Distance Coeff

Ehlers Filter Distance Coeff is a trend indicator and may be used in conjunction with other studies. No trading signals are calculated.

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Calculation

//input = price, user defined, default is closing price
//period = p1 = user defined, default is 20
index = current bar number, LOE = less or equal

iprice = 0, priorP = 0, num = 0, sumC = 0, filt = 0;
coef[] = new [p1];
d2[] = new [p1];
count = 0;
for(i = index - (p1-1); i LOE index; i++)
    d2[count] = 0;
    iprice = price[i];
    for( lb = 1; lb lessThan p1; lb++)
        priorP = price[i-lb];
        d2[count] = d2[count] + (iprice - priorP) * (iprice - priorP);
    endFor
    coef[count] = d2[count];
    count++;
endFor
count = 0;
for(i = index - (p1-1); i LOE index; i++)
    iprice = price[i];
    num = num + coef[count] * iprice;
    sumC = sumC + coef[count];
    count++;
endFor
if (sumC != 0) filt = num / sumC;
Plot: filt