The Instantaneous Trendline by John F. Ehlers, Ph.D.
Is it possible to have an instantaneous
To say that a trendline is
“instantaneous” may be
presumptuous, but because
you can compute a continuous
trendline with modern technology
and thus assess the action in the
markets, the term is somewhat appropriate.
A market can be in two modes — a trend
mode and a cycle mode. That means you can
describe the general market as a combination
of the two. If you apply a simple moving
average (SMA) over the period of a dominant
cycle, the dominant cycle component can
be completely eliminated.