Stocks & Commodities V. 43:09 (8–12): The Continuation Index by John F. Ehlers

The Continuation Index by John F. Ehlers

Here, we introduce an indicator named the continuation index to provide early indication of trend onset and early indication of a trend exhaustion.

I began developing the continuation index with the observation that a Laguerre filter is a reasonable representation of a trend, and when in a trend, prices tend to stay on one side of the filter or the other ...