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Note: This download requires NinjaTrader 8 release 8.1.3 or newer.

Ehler's Instantaneous Trendline is a technical indicator developed by John F. Ehlers, known for his innovative contributions to technical analysis. This trendline aims to reduce the lag typically associated with moving averages while maintaining a smooth line that represents the price trend. Unlike traditional moving averages, which can be slow to react to price changes, Ehler's Instantaneous Trendline responds rapidly to market movements, providing more accurate trend insights.

Applying Ehler's Instantaneous Trendline in Trading

To use Ehler's Instantaneous Trendline effectively, traders should integrate it into a broader technical analysis framework. Here are some common applications for the indicator:

• Trend Identification: Ehler's Instantaneous Trendline is excellent for identifying short-term trends in the market. Traders can use it to confirm the direction of a trend and determine whether to enter or exit a position.
• Support and Resistance Levels: The indicator can also serve as a dynamic support or resistance level, indicating areas where price may reverse or consolidate.
• Divergence Analysis: Traders can look for divergences between the price and the trendline to identify potential trend reversals. This technique can be useful for spotting early signs of market shifts.

Instantaneous Trend Line Features:

• Custom input.
• Choose to display either a trend line or color the background based on the determined trend.
• Full color customization.

Review the screenshots and video for setup options.

There is another version of this indicator that can be found here.

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