Underlying Trend: Sigma-L
In this article we look at how to account for the ever present underlying trend in the context of the advanced fld trading strategy explored previously.
Markets Are Never Flat
A simple concept, but one which must be considered for our purposes as Hurstonians, is underlying trend. Named by Hurst as ‘sigma-l’ to simply mean ‘the sum of all cycles’, it is inherent in a system which assumes cycles form an infinite series of increasing period. This underlying trend (which can be thought of as a sum of sinusoi…