Early Trend Identification by John F. Ehlers
Impressive profits can be accumulated just by staying with a position during a trend. We would all be millionaires if only we could identify the trend early in its onset. While the trends are obvious in retrospect, it's another matter altogether to identify the trend in the heat of battle. Not only that, there may not be a trend at all at the time we expect one.
If we make a reasonable mathematical model of the market we can examine it parametrically. The conclusions we draw from this model can help us establish our entry points and strategies for trading the trends. We will view the market as a random walk problem to create our model.