Continuation Index [DCAUT]█ Continuation Index
📊 Indicator Overview
Continuation Index (CI) is an advanced trend analysis indicator developed by John F. Ehlers. This indicator provides early warning signals for trend onset, continuation, and exhaustion, with values oscillating between -1 and +1 to offer clear trend state identification for traders.
🎯 Core Advantages
Early Warning : Timely identification of trend onset and exhaustion signals
Clear States : Primarily provides two distinct states (+1/-1)
Reduced Lag : Based on advanced filtering techniques to minimize computational delay
High Flexibility : Adjustable parameters adapt to different market environments
🚀 Usage Guide
Parameter Settings
Source : Data source (default: close price)
Length : Calculation length (default: 40, recommended as desired holding period)
Gamma : Laguerre filter phase response control (default: 0.8)
Laguerre Order : Laguerre filter order (default: 8)
📊 Signal Interpretation
CI = +1 : Recommend holding long positions
CI = -1 : Recommend closing or holding short positions (depending on trading style)
CI Brief Pullback : Can serve as "buy the dip" opportunities to add positions
CI State Changes : Caused by price crossing the filter, timely indicating trend transitions
📊 Color Coding
Green : CI > 0.5 - Trend continuation signal
Red : CI < -0.5 - Trend exhaustion signal
Gray : Neutral zone - Trend unclear
💡 Core Value
Continuation Index provides traders with:
- Timely trend onset and exhaustion warning signals
- Clear dual-state system simplifying trading decisions
- Professional-grade algorithm based on advanced filtering techniques
- Flexible parameter settings adapting to different trading styles
📄 License : MIT License
👨💻 Developer : DCAUT Team
📖 Reference : TASC 2025.09 "Trend Onset And Trend Exhaustion - The Continuation Index" by John F. Ehlers
