Moving averages Part 2 Ehlers Leading Indicator (ELI) by John Ehlers
ARTICLE SYNOPSIS ...Moving averages
Part 2 Ehlers Leading Indicator (ELI)
by John Ehlers
Most technical indicators use a moving average of some kind, and this usually dooms the indicator to
lag price. Some indicators use momentum, or rate of change, to generate a leading function. However,
this is similar to taking the derivative of a continuous function, and it results in a very noisy signal. The
noise is usually reduced by smoothing or averaging. This averaging delays the indicator so that, at best, it
runs even with price, without lag or lead.
I have developed a new indicator that provides leading signals wh...