"we are extremely excited to offer our research studies, reports and software on the bloomberg professional system. we believe our trading discipline through the technical observation of our advanced bias, setup and trigger measures dovetails nicely with the advantage of knowing who is getting squeezed ." Phil Erlanger, CMT & president of Phil Erlanger Research Co., Inc.

Erlanger Nantucket Sleighride (ENS):

The ENS is a set of three sub indicators: the ENS, the ENS Fast and the ENS OB/OS. The ENS can act as a bias, setup and trigger indicator. It is a composite of very sensitive direction measures, and its name is derived from its aggressive nature of following a trend. Wherever the whale goes, the user will be dragged in that direction.
The idea behind the ENS is to highlight the meaty part of a trend as it unfolds. For the ENS and ENS Fast, the meaty part of the trend is highlighted by the time spent in the extreme zones, which are delineated by the indicator's time spent above 50 (uptrend) or below -50 (downtrend.) These are colored green and red respectively. These levels are user changeable in Bloomberg.

Once the ENS rises above 50, an uptrend is considered to be underway. The meaty part of the uptrend is complete when the ENS falls back below 50. Once the ENS falls below -50, a downtrend is considered to be underway. The meaty part of the downtrend is complete when the ENS moves back above -50.

There is a fast version of the ENS indicator. The ENS Fast indicator is designed to give the user an early indication of entry into the meaty portion of a trend. Long entry (short exit) signals are considered with the first move above 50, with a long exit (short entry) at the first move below -50.

There is a third version of ENS, the ENS OB/OS indicator which is designed to reflect overbought and oversold levels in a trend.

SETUP and TRIGGER STRATEGY: The oversold moments of the ENS OB/OS indicator are an important setup for an upside reversal of trend. The trigger for that upside reversal occurs when the ENS Fast indicator moves above 50 (the green level in the ENS Fast.) The new uptrend is confirmed when the standard ENS moves above 50 (the green level in the ENS.) The overbought moments of the ENS OB/OS indicator are an important setup for a downside reversal of trend. The trigger for that downside reversal occurs when the ENS Fast indicator moves below -50 (the red level in the ENS Fast.) The new downtrend is confirmed when the standard ENS moves below -50 (the red level in the ENS.) Generally the ENS confirms the ENS Fast in the next bar.

BIAS STRATEGY: The ENS can be used as a bias indicator. As is often the case for bias indicators, select an interval larger than the one used for triggers. If triggers are taken using daily data, select the ENS or ENS Fast on a weekly basis as a bias for which side of the market to trade. For example, as long as the ENS Fast on a weekly basis is above 50 (green zone), the bias is for long trades only on trades triggered on a daily basis. As long as the ENS Fast on a weekly basis is below -50 (red zone), the bias is for short trades only on trades triggered on a daily basis. It is also appropriate to use the weekly ENS as a bias indicator and another type of indicator as a trigger, like the daily EROC.

 

 

 

 

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