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