Hilbert Transform - Phasor

Overview

The Hilbert Transform - Phasor is a sophisticated signal processing indicator that represents price movements as a rotating vector (phasor) in the complex plane. Developed by John Ehlers, this indicator outputs two components: the In-phase (I) component, which represents the real part, and the Quadrature (Q) component, which represents the imaginary part lagging by 90 degrees.

The phasor representation is like viewing price as an arrow rotating around a circle. The arrow's length indicates cycle strength (amplitude), while its angle indicates where we are in the cycle (phase). This two-dimensional view provides simultaneous information about both cycle strength and position, making it invaluable for understanding market dynamics and timing trades based on cyclical behavior.

Interpretation & Trading Signals

Phasor Components:

  • In-phase (I): Real component, represents current cycle position (cosine)
  • Quadrature (Q): Imaginary component, lags I by 90° (sine)
  • Phasor Length: √(I² + Q²) = cycle amplitude/strength
  • Phasor Angle: atan2(Q, I) = current phase position

Phasor Patterns:

  • Circular Motion: Steady cycles produce consistent circular rotation
  • Expanding Spiral: Increasing cycle amplitude, strengthening trend
  • Contracting Spiral: Decreasing amplitude, weakening cycles
  • Erratic Motion: No clear cycle present, choppy market

Trading Applications:

  • Cycle Quality: Large, smooth phasor = high-quality tradeable cycle
  • Phase Tracking: Monitor rotation speed for cycle period changes
  • Signal-to-Noise: Phasor length indicates signal strength vs noise
  • Adaptive Indicators: Use I & Q components for dynamic calculations

Example Usage

Code examples will be available once the Rust implementation is complete.

Performance Analysis

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