Dateline: 4/7/2004
Cybernetic Analysis Indicators Add-on by John Ehlers

This add-on includes NeuroShell Trader versions of the indicators described in John Ehlers’ new book, “Cybernetic Analysis for Stocks and Futures.” NeuroShell Trader Professional and DayTrader users can further enhance Ehlers’ work by combining his indicators with the power of the NeuroShell Trader’s optimizer to breed trading systems with a winning edge.

According to Ehlers, there is “minimal overlap” between the indicators described in “Cybernetic Analysis” and his previous work. The new book develops and demonstrates profoundly effective new trading tools through the application of modern digital signal processing techniques. Obtaining accurate cycle measurements within five samples with virtually zero lag, these tools have proven in real-time use to consistently provide traders with razor-sharp buy and sell signals in virtually any market--meeting or exceeding the performance of commercial systems which cost hundreds or even thousands of dollars.

Modernizing popular trading procedures to take advantage of the incredible computing speed and power available to today’s trader, Ehlers introduces:

• The Fisher Transform--ensure that the density function of any indicator is Gaussian, creating sharper trading signals
  
• The Relative Vigor Index--a responsive oscillator in which movement is normalized to the trading range of each bar
  
• Improved Hilbert Transform--a more responsive method to accurately measure market cycles
  
• The Sinewave Indicator--a non-causal filter that gives entry and exit signals 1/16 of a cycle period in advance of the turning point
  
• The Laguerre Transform--a new tool to address the smoothing versus lag problem more effectively and create better smoothing filters
  
• Super Smoothing Filters--provide more smoothing with less lag
  
• Simple Moving Average Computations--two new ways to compute the simple moving average with unprecedented ease