To apply the methodThe function smoothes a series using the Hodrick-Prescott Filter method. It is included in the Smoothing group.
The Hodrick-Prescott filter is a smoothing method applied to a time series to determine long-term trends.
After the method is applied, a series with the name of the Hodrick-Prescott Filter(<Series_Name>) type and containing calculation results is added to the data table for each of the selected series. For example:
To set up calculation options, use the Parameters tab on the side panel.
Set method parameters:
Smoothing Parameters. It controls series smoothness. The greater is the parameter value, the smoother is the series. If the smoothing parameter value tends to infinity, the series is transformed into a linear trend. Use the radio buttons to select a method to determine smoothing parameters:
Lambda. Smoothing parameter depends on the lambda value. The 100,00 value is used by default.
Power. The smoothing parameter is determined by the power value that must be greater than zero. The 2,00 value is used by default.
See also:
Calculation Methods | Smoothing |The Hodrick-Prescott Filter
Smoothing button on the Calculations ribbon tab.