Download Kelly`s Cycle Identifier™

Dynamic Trend Filter
The above chart shows the Dynamic Trend Filter (the red line) and the Purple
Indicator at the bottom is the Kelly’s Cycle Identifier Filtered, and as seen, it
picked up the trading cycle in the direction of the trend. This Dynamic Trend
Filter indicator is a very useful tool which helps the trader to trade in the
direction of the trend.
The market does not always trend hard in one direction or the other, which
can make trading tricky. When adding the Dynamic Trend Filter as an
indicator that can be plotted on the price (or in sub-graph), it acts much like
a range finder--how much the price will move from highs to lows. By plotting
on the price, what the trader will often see is that the price will bounce off
the Dynamic Trend Filter at extremes.
The charts below incorporate the Kelly's Cycle Identifier and the Dynamic
Trend Filter to demonstrate how this works.
Copyright 1987 - 2009, Roy Kelly
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