1. A method for processing a physiological signal, comprising: using one or more processors of a sensor, a cable coupling the sensor to a monitor, or an intermediate device disposed between the sensor and the monitor, or any combination thereof, to perform the steps of: obtaining a physiological signal in the time domain from the sensor; identifying one or more artifacts in the physiological signal in the time domain; performing a wavelet decomposition on the physiological signal to generate two or more wavelet coefficients; generating an artifact-compensated signal in the time domain based on the one or more artifacts that are identified in the time domain and the two or more wavelet coefficients; and providing the artifact-compensated signal to the monitor, wherein the monitor is configured to display the artifact-compensated signal or to display one or more physiological parameters based on the artifact-compensated signal.