Correlation As A Cycle Indicator by John F. Ehlers
As traders know, markets have trend modes and cyclic (mean-reversion) modes. Last month, we introduced a new indicator—the trend correlation indicator—for trend trading, based on a straightforward yet novel concept. This month, we follow up with a second new indicator to help you profit in cycling markets.
Cycle indicators can give very fast and timely signals. Here, I will present a new cycle indicator to help you get in early on trades, as well as a variable to help you base trade entries on prevailing market conditions ...