Voss Predictive Filter

Parameters: period = 20 (5–100) • predict = 3 (1–10)

Overview

The Voss Predictive Filter represents an innovative approach to technical analysis by implementing a negative group delay filter that theoretically provides signals ahead of traditional indicators. Published in the August 2019 issue of Technical Analysis of Stocks & Commodities magazine as "A Peek Into The Future," Ehlers' implementation reduces complex calculus to just six lines of code, making advanced predictive mathematics accessible to traders through a two-pole bandpass filter feeding into the Voss predictor.

The indicator produces two lines - the V-Line (Voss predictor) and F-Line (filter result) - whose crossovers generate trading signals. While it cannot actually see into the future, the mathematical properties of negative delay filtering create an effect where signals may appear earlier than with conventional indicators. However, this predictive nature also makes the indicator prone to false signals, especially in trending markets where cyclical assumptions break down.

Interpretation & Trading Signals

Primary Crossover Signals:

  • Bullish Signal: V-Line (blue) crosses above F-Line (red) - potential buy
  • Bearish Signal: V-Line crosses below F-Line - potential sell
  • Trend Confirmation: Green dots indicate uptrend, red dots indicate downtrend
  • Signal Validation: Only take signals aligned with trend direction

Advanced Trading Approaches:

  • Extreme Levels: Buy when Voss hits 200-bar low, sell on zero cross
  • Cyclical Turning Points: Best for identifying market cycles, not trends
  • Filter Combination: Must use with trend detector to avoid false signals
  • Market Conditions: Works best in ranging, cyclical markets

Risk Management:

  • Never Use Alone: High false signal rate requires confirmation
  • Trend Failures: Performs poorly in strong trending markets
  • Commission Impact: Frequent signals may erode profits through costs
  • Supplementary Tool: Best as part of comprehensive analysis system

Example Usage

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

Performance Analysis

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