Instantaneous Trendline
Removes the dominant cycle to reveal the underlying trend with minimal lag.
Usage
Use as an adaptive trend line that automatically adjusts to the current dominant cycle period, replacing fixed-period moving averages in trend-following systems.
Background
Defined in Rocket Science for Traders (2001), the Instantaneous Trendline is derived from Hilbert Transform phasors and synchronized to the current market cycle. It is computed as a 3-bar weighted average adjusted by the instantaneous period, giving a zero-lag trend estimate.
Formula
\[
Trendline = \text{WMA}(\text{SMA}(Price, DCPeriod), 4)
\]