Hodrick-Prescott (HP) filter

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This indicator is an implementation of Hodrick-Prescott( HP ) filter
This filter is a mathematical model the can remove cyclical components from the price signal to get the trend components.

  • “Lambda” is the smoothing factor and can have a value between 1 and infinity.
  • “Length” is the number of previous prices that are included in the filter.

The default values of lambda and length work well for almost all time frames.

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