Cycle/Trend Analytics And The MAD Indicator by John F. Ehlers
Here, we introduce the moving average difference (MAD) indicator and explain the rationale behind its creation. You will find the indicator is robust yet reflects simplicity.
I have been conducting a research project that I started as a way to gain insight into the characteristics of cycles in market data. (See my May 2021 S&C article, “A Technical Description Of Market Data For Traders,” and my February 2021 article, “Creating More Robust Trading Strategies With The FM Demodulator”). Ultimately, the research led to my development of a new trend indicator—the moving average difference (MAD) oscillator ...