One more to add to the Ehlers collection.
Ehlers Instantaneous Trendline, by John Ehlers, identifies the market trend by doing removing cycle component. I think, this simplicity is what makes it attractive :) To understand Ehlers's thought process behind this, refer to the PDF linked below.
There are atleast 6 variations of this ITrend. This version is from his early presentations.
Is this better than a simple HMA? May be, May be not. I will leave it to you to decide :)
I have added options to show this as a ribbon, and to color bars based on ITrend. Check out the options page.
More info:
- ITrend: www.mesasoftware.com...nars/AfTAMay2003.pdf
List of my public indicators: bit.ly/1LQaPK8
List of my app-store indicators: blog.tradingview.com/?p=970
Ehlers Instantaneous Trendline, by John Ehlers, identifies the market trend by doing removing cycle component. I think, this simplicity is what makes it attractive :) To understand Ehlers's thought process behind this, refer to the PDF linked below.
There are atleast 6 variations of this ITrend. This version is from his early presentations.
Is this better than a simple HMA? May be, May be not. I will leave it to you to decide :)
I have added options to show this as a ribbon, and to color bars based on ITrend. Check out the options page.
More info:
- ITrend: www.mesasoftware.com...nars/AfTAMay2003.pdf
List of my public indicators: bit.ly/1LQaPK8
List of my app-store indicators: blog.tradingview.com/?p=970
List of my free indicators: bit.ly/1LQaPK8
List of my indicators at Appstore: blog.tradingview.com/?p=970
List of my indicators at Appstore: blog.tradingview.com/?p=970
// // @author LazyBear // // List of my public indicators: http://bit.ly/1LQaPK8 // List of my app-store indicators: http://blog.tradingview.com/?p=970 // study(title="Ehlers Instantaneous Trend [LazyBear]", shorttitle="EIT_LB", overlay=true, precision=3) src=input(hl2, title="Source") a= input(0.07, title="Alpha", step=0.01) fr=input(false, title="Fill Trend Region") ebc=input(false, title="Enable barcolors") hr=input(false, title="Hide Ribbon") it=(a-((a*a)/4.0))*src+0.5*a*a*src[1]-(a-0.75*a*a)*src[2]+2*(1-a )*nz(it[1], ((src+2*src[1]+src[2])/4.0))-(1-a )*(1-a )*nz(it[2], ((src+2*src[1]+src[2])/4.0)) lag=2.0*it-nz(it[2]) dl=plot(fr and (not hr)?(it>lag?lag:it):na, color=gray, style=circles, linewidth=0, title="Dummy") itl=plot(hr?na:it, color=fr?gray:red, linewidth=1, title="Trend") ll=plot(hr?na:lag, color=fr?gray:blue, linewidth=1, title="Trigger") fill(dl, ll, green, title="UpTrend", transp=70) fill(dl, itl, red, title="DownTrend", transp=70) bc=not ebc?na:(it>lag?red:lime) barcolor(bc)
