Recruitment of participants Better Sine Wave NinjaTrader Indicator

Better Sine Wave NinjaTrader Indicator
Using Price Cycles and Trends to Trade



The Hilbert Sine Wave was developed by John Ehlers and first published in his book “Rocket Science for Traders”. The indicator uses an algorithm, originally applied to digital signal processing, that measures the amount of cyclical energy in a stream of data, for example, a stream of market prices.

The indicator produces a sine wave plot, as shown in the bottom half of the Emini chart above. Two lines are drawn (blue and red) and crossovers signal cyclical turning points.

What makes this indicator unique is that it distinguishes between cyclical and trending price activity. During periods when the price activity is trending, and not displaying cyclical characteristics, the lines do not cross and the indicator does not plot the normal sine wave – the lines look “out of sync”.