Ehlers Instantaneous Trend [LazyBear]

lazybear custom indicators ehlers trendline altmovingaverage

One more to add to the Ehlers collection.

Ehlers Instantaneous Trendline, by John Ehlers, identifies the market trend by doing removing cycle component. I think, this simplicity is what makes it attractive :) To understand Ehlers's thought process behind this, refer to the PDF linked below.

There are atleast 6 variations of this ITrend. This version is from his early presentations.

Is this better than a simple HMA? May be, May be not. I will leave it to you to decide :)

I have added options to show this as a ribbon, and to color bars based on ITrend. Check out the options page.

More info:
- ITrend:

List of my public indicators:
List of my app-store indicators:

List of my free indicators: bit.ly/1LQaPK8
List of my indicators at Appstore: blog.tradingview.com/?p=970

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?

//
// @author LazyBear 
// 
// List of my public indicators: http://bit.ly/1LQaPK8 
// List of my app-store indicators: http://blog.tradingview.com/?p=970 
//
study(title="Ehlers Instantaneous Trend [LazyBear]", shorttitle="EIT_LB", overlay=true, precision=3)
src=input(hl2, title="Source")
a= input(0.07, title="Alpha", step=0.01) 
fr=input(false, title="Fill Trend Region")
ebc=input(false, title="Enable barcolors")
hr=input(false, title="Hide Ribbon")
it=(a-((a*a)/4.0))*src+0.5*a*a*src[1]-(a-0.75*a*a)*src[2]+2*(1-a )*nz(it[1], ((src+2*src[1]+src[2])/4.0))-(1-a )*(1-a )*nz(it[2], ((src+2*src[1]+src[2])/4.0))
lag=2.0*it-nz(it[2])
dl=plot(fr and (not hr)?(it>lag?lag:it):na, color=gray, style=circles, linewidth=0, title="Dummy")
itl=plot(hr?na:it, color=fr?gray:red, linewidth=1, title="Trend")
ll=plot(hr?na:lag, color=fr?gray:blue, linewidth=1, title="Trigger")
fill(dl, ll, green, title="UpTrend", transp=70)
fill(dl, itl, red, title="DownTrend", transp=70)
bc=not ebc?na:(it>lag?red:lime)
barcolor(bc)

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