Hilbert Transform Dominant Cycle Phase (HT DCPHASE)
The Market Metronome That Times Your Entries to the Current Beat
Building on his Dominant Cycle Period work, John Ehlers gave traders the Dominant Cycle Phase (DCPHASE) – a real-time 'clock' that shows exactly where price sits in its current cycle: rising toward a peak, falling toward a trough, or somewhere in between. Using Hilbert Transform phase analysis synchronized to the measured cycle length (from DCPERIOD), it outputs a continuous angle (in degrees) that sweeps from 0° (trough) through 360°. It's the precision timing tool for cycle-based systems, letting you enter near lows, exit near highs, and sync adaptive indicators to the market's ever-changing rhythm.
How Phase Is Calculated
Signal flow overview:
- Detrend price: High-pass or EMA to strip slow drift.
- Hilbert pair: Generate InPhase (I) and Quadrature (Q) components.
- Raw phase: \phi = \arctan(Q / I) (unwrapped for continuity).
- Sync to cycle: Rescale so one 360° sweep matches current DCPERIOD.
- Smooth lightly: Short EMA to reduce jitter.
Result: Phase that marches steadily through the dominant cycle.
Key Phase Landmarks
Cycle positions:
- 0° / 360°: Trough – potential long entry zone.
- 90°: Mid-rise – upward momentum strongest.
- 180°: Peak – watch for topping or profit-taking.
- 270°: Mid-fall – downward momentum strongest.
Long setups often near 0°→30° rising; shorts near 180°→210° falling.
Practical Trading Applications
Timing ideas:
- Cycle entries: Long when phase crosses 0° rising + price confirmation.
- Adaptive oscillators: Window = ½ × DCPERIOD; trigger only in favorable phase.
- Cycle-synced exits: Close longs near 150°–180° if momentum fades.
- Composite systems: MACD lengths scaled to DCPERIOD, filtered by phase direction.
Phase alone isn't a trigger – confirm with price, volume, or strength (ADX).
Implementation Tips
Best practices:
- Input: Median price ((H+L)/2) for cleaner signal.
- Unwrap phase: Avoid 360° jumps for smooth line.
- Sync with DCPERIOD: Critical for accurate cycle alignment.
- Light smoothing: EMA(α≈0.33) on output.
Strengths and Caveats
The Wins
- Precise cycle timing – where in the wave are we?
- Self-adapting with DCPERIOD changes.
- Great for synchronized entries/exits.
- Pairs perfectly with adaptive tools.
The Gotchas
- Distorted by gaps, spikes, low volume.
- Breaks in non-cyclic (trending/news) regimes.
- Needs ~50-bar warm-up.
- Diagnostic – not standalone signal.
Your DCPHASE Checklist
- Use with DCPERIOD for full cycle context.
- Feed clean median price input.
- Unwrap and lightly smooth phase.
- Time entries near 0°/180° extremes.
- Confirm with price/volume/strength.
- Watch for phase acceleration in breakouts.
Key Takeaways
DCPHASE tracks exact position in the dominant cycle – trough to peak in real time.
0° trough (long zone), 180° peak (caution zone).
Perfect timing overlay for adaptive systems and cycle trades.
Syncs with changing DCPERIOD – stays in rhythm.
Confirm always – phase tells 'when', not 'if'. Stay in beat and trade strong!
Hilbert Transform Dominant Cycle Phase (HT DCPHASE)
The Market Metronome That Times Your Entries to the Current Beat
Building on his Dominant Cycle Period work, John Ehlers gave traders the Dominant Cycle Phase (DCPHASE) – a real-time 'clock' that shows exactly where price sits in its current cycle: rising toward a peak, falling toward a trough, or somewhere in between. Using Hilbert Transform phase analysis synchronized to the measured cycle length (from DCPERIOD), it outputs a continuous angle (in degrees) that sweeps from 0° (trough) through 360°. It's the precision timing tool for cycle-based systems, letting you enter near lows, exit near highs, and sync adaptive indicators to the market's ever-changing rhythm.
Table of Contents
How Phase Is Calculated
Signal flow overview:
- Detrend price: High-pass or EMA to strip slow drift.
- Hilbert pair: Generate InPhase (I) and Quadrature (Q) components.
- Raw phase: \phi = \arctan(Q / I) (unwrapped for continuity).
- Sync to cycle: Rescale so one 360° sweep matches current DCPERIOD.
- Smooth lightly: Short EMA to reduce jitter.
Result: Phase that marches steadily through the dominant cycle.
Key Phase Landmarks
Cycle positions:
- 0° / 360°: Trough – potential long entry zone.
- 90°: Mid-rise – upward momentum strongest.
- 180°: Peak – watch for topping or profit-taking.
- 270°: Mid-fall – downward momentum strongest.
Long setups often near 0°→30° rising; shorts near 180°→210° falling.
Practical Trading Applications
Timing ideas:
- Cycle entries: Long when phase crosses 0° rising + price confirmation.
- Adaptive oscillators: Window = ½ × DCPERIOD; trigger only in favorable phase.
- Cycle-synced exits: Close longs near 150°–180° if momentum fades.
- Composite systems: MACD lengths scaled to DCPERIOD, filtered by phase direction.
Phase alone isn't a trigger – confirm with price, volume, or strength (ADX).
Implementation Tips
Best practices:
- Input: Median price ((H+L)/2) for cleaner signal.
- Unwrap phase: Avoid 360° jumps for smooth line.
- Sync with DCPERIOD: Critical for accurate cycle alignment.
- Light smoothing: EMA(α≈0.33) on output.
Strengths and Caveats
The Wins
- Precise cycle timing – where in the wave are we?
- Self-adapting with DCPERIOD changes.
- Great for synchronized entries/exits.
- Pairs perfectly with adaptive tools.
The Gotchas
- Distorted by gaps, spikes, low volume.
- Breaks in non-cyclic (trending/news) regimes.
- Needs ~50-bar warm-up.
- Diagnostic – not standalone signal.
Your DCPHASE Checklist
- Use with DCPERIOD for full cycle context.
- Feed clean median price input.
- Unwrap and lightly smooth phase.
- Time entries near 0°/180° extremes.
- Confirm with price/volume/strength.
- Watch for phase acceleration in breakouts.
Key Takeaways
DCPHASE tracks exact position in the dominant cycle – trough to peak in real time.
0° trough (long zone), 180° peak (caution zone).
Perfect timing overlay for adaptive systems and cycle trades.
Syncs with changing DCPERIOD – stays in rhythm.
Confirm always – phase tells 'when', not 'if'. Stay in beat and trade strong!
Related Terms
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