DYNAMIC BAND PASS VELOCITY Trading Guide
Last updated: June 17, 2026
The Dynamic Band-Pass Velocity (DBPV) is a premium Digital Signal Processing (DSP) oscillator. It dynamically extracts the cyclical frequency of price fluctuations and combines it with a volume-ease factor to measure velocity and acceleration within the market cycle.
Core Mathematical Engine
Unlike static cycle indicators, the DBPV adapts in real-time using a complex DSP chain:
- Dynamic Homodyne Discriminator: Continuously measures the dominant cycle period (T) of the asset, automatically adapting parameters based on whether the cycle is speeding up or slowing down.
- Adaptive Band-Pass Filter: Filters out trend bias and high-frequency noise, isolating the pure cyclical wave based on the calculated dominant cycle period.
- Volume-Ease Weighting: Weights the wave velocity by a custom volume ratio, distinguishing between movements easily driven on thin liquidity and strong moves supported by large institutional volume.
- Adaptive SuperSmoother: Smooths the raw momentum with a 2-pole low-pass filter whose cutoff dynamically scales with the dominant cycle period to minimize lag while eliminating noise.
- Standard Deviation Normalization: Normalizes the output into a stable [-5, 5] range to ensure consistent threshold crossovers on any market.
What does the indicator show?
- DBPV Histogram: A zero-centered histogram colored by cycle velocity and volume dominance:
- Bullish Strong (Bright Green): Upward movement supported by high volume.
- Bullish Easy (Sky Blue): Upward movement occurring easily on low volume.
- Bearish Strong (Bright Red): Downward movement supported by high volume.
- Bearish Easy (Orange): Downward movement occurring easily on low volume.
- Dynamic Threshold Bands: Standardized upper and lower standard deviation bands representing extreme impulse levels. Crossings are marked with white dot indicators.
Trading Strategies
- Cycle Reversal Entries: Look for histogram color flips near the dynamic threshold bands (e.g. from Orange/Red to Green) to buy the absolute cyclical bottom and sell the cyclical top.
- Impulse Breakout: Trade momentum breakouts when the histogram crosses and stays above the upper threshold band (indicating a strong trend release).