Adaptive Trends And Oscillators The Twain Meets Here
by John F. Ehlers
Can the market be modeled as a combination
of a trend mode and a cycle mode? This longtime S&C contributor says yes. Here, he explores two indicators to trade each mode; one is the new, adaptive version of
an indicator originally introduced in 1996, and it does well in trading ranges but steps aside in trends. With this new version, you can address both modes of the market without interfering with the other —and that ’s something that traders have been waiting for.