Mr. Ehlers suggested a way to improve trend identification using high-pass filters. By doing this, he removed the high-frequency, short-wavelength components from the time series.
The Decycler is plotted with two additional lines (the percent-shifts of Decycler) .
If the prices are above the upper line, then the market is in an uptrend. If the prices are below the low line, then the market is in a downtrend.
Technical support from the site page "The Decycler II: John Ehlers"
Additional information on the Telegram channel (don’t forget to subscribe).
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