Hilbert Transform Trend-vs-Cycle Mode (TVM)
The Real-Time Traffic Light for Trend or Chop
Markets are moody – sometimes they march in a clear direction, other times they just wiggle around a mean. Most indicators pretend it's always one or the other, leading to heartbreak. John Ehlers' Trend-vs-Cycle Mode (TVM) – often called HT TrendMode – fixes that with DSP smarts. It watches the market's dominant 'wavelength' bar-by-bar and flips a simple switch: TREND (go chase momentum) or CYCLE (play the oscillations). It's like giving your strategy an automatic gearbox so you use the right tools for the current regime.
Why TVM Exists – Adapting to Market Personality
Markets flip between two personalities:
- Trend mode: Directional moves rule – moving averages, breakouts, and momentum shine.
- Cycle mode: Price oscillates – oscillators (RSI, Stoch) and mean-reversion tactics dominate.
TVM uses Hilbert Transform to measure phase stability and instantly classify the current regime, letting you gate strategies accordingly and dodge tons of false signals.
How It Decides – The DSP Decision Engine
Step-by-step in plain terms:
- Detrend price: High-pass or SuperSmoother removes slow drift.
- Hilbert pair: Create In-Phase (I) and Quadrature (Q) components with a short FIR kernel.
- Instantaneous period: Track phase advance to estimate current dominant cycle length (clamped 6–50 bars).
- Stability check: If period changes very little bar-to-bar (smooth phase) and period >15 → TREND. Erratic jumps → CYCLE.
Modern scripts often tighten tolerance (e.g., ≤0.07×previous period) and require ADX confirmation for extra robustness.
Visual output: usually a histogram or ribbon – green/+1 for TREND, red/0 for CYCLE.
Reading the Signal – Green Means Go Momentum
What the mode tells you:
- +1 (TREND, green): Coherent directional progress – price making steady headway.
- 0 (CYCLE, red): Oscillating around a mean – chop or consolidation.
- Quick switches after failed moves or volatility shifts – early warning of regime change.
The binary nature keeps decisions crystal clear.
Smart Ways to Put TVM to Work
Practical integrations:
- MA cross system: Only take crosses when TVM = TREND; ignore in CYCLE.
- Oscillator fades: Activate RSI/Stochastic mean-reversion only when TVM = CYCLE.
- Trailing stops: Tight (1×ATR) in TREND; wider (2×ATR) in CYCLE to breathe.
- Position sizing: Boost size 1.5× in confirmed TREND (with rising ADX); reduce in CYCLE.
TVM doesn't give direction – pair with +DI/-DI or price slope for bias.
The Superpowers and the Fine Print
Strengths
- True self-adaptive regime detection – no fixed lookbacks.
- Cuts whipsaws by disabling wrong-tool signals.
- Lightweight and fast – works even on tick charts.
Limitations
- First ~50 bars unreliable while filters stabilize.
- Sensitive to gaps or thin data – pre-smooth inputs on wild assets.
- Binary view can oversimplify mixed regimes – add VHF or ATR for nuance.
Your TVM Launch Checklist
- Plot TVM ribbon/histogram with your favorite strategy indicators.
- Test gating rules on historical trending vs ranging periods.
- Add secondary confirmation (ADX >20 for TREND) if needed.
- Backtest how TVM improves win rate and reduces drawdowns.
- Monitor regime switches for early adaptation cues.
Key Takeaways
TVM uses Hilbert phase stability to instantly classify market regime: Trend or Cycle.
Green light for momentum tools in TREND; red light for oscillators in CYCLE.
Cuts false signals dramatically by matching strategy to current personality.
Ultra-light, no repaint, real-time ready – but needs warm-up and clean data.
Add this one-bit genius as a gatekeeper and watch your system adapt like a pro. Stay in the right mode and trade sharp!
Hilbert Transform Trend-vs-Cycle Mode (TVM)
The Real-Time Traffic Light for Trend or Chop
Markets are moody – sometimes they march in a clear direction, other times they just wiggle around a mean. Most indicators pretend it's always one or the other, leading to heartbreak. John Ehlers' Trend-vs-Cycle Mode (TVM) – often called HT TrendMode – fixes that with DSP smarts. It watches the market's dominant 'wavelength' bar-by-bar and flips a simple switch: TREND (go chase momentum) or CYCLE (play the oscillations). It's like giving your strategy an automatic gearbox so you use the right tools for the current regime.
Table of Contents
Why TVM Exists – Adapting to Market Personality
Markets flip between two personalities:
- Trend mode: Directional moves rule – moving averages, breakouts, and momentum shine.
- Cycle mode: Price oscillates – oscillators (RSI, Stoch) and mean-reversion tactics dominate.
TVM uses Hilbert Transform to measure phase stability and instantly classify the current regime, letting you gate strategies accordingly and dodge tons of false signals.
How It Decides – The DSP Decision Engine
Step-by-step in plain terms:
- Detrend price: High-pass or SuperSmoother removes slow drift.
- Hilbert pair: Create In-Phase (I) and Quadrature (Q) components with a short FIR kernel.
- Instantaneous period: Track phase advance to estimate current dominant cycle length (clamped 6–50 bars).
- Stability check: If period changes very little bar-to-bar (smooth phase) and period >15 → TREND. Erratic jumps → CYCLE.
Modern scripts often tighten tolerance (e.g., ≤0.07×previous period) and require ADX confirmation for extra robustness.
Visual output: usually a histogram or ribbon – green/+1 for TREND, red/0 for CYCLE.
Reading the Signal – Green Means Go Momentum
What the mode tells you:
- +1 (TREND, green): Coherent directional progress – price making steady headway.
- 0 (CYCLE, red): Oscillating around a mean – chop or consolidation.
- Quick switches after failed moves or volatility shifts – early warning of regime change.
The binary nature keeps decisions crystal clear.
Smart Ways to Put TVM to Work
Practical integrations:
- MA cross system: Only take crosses when TVM = TREND; ignore in CYCLE.
- Oscillator fades: Activate RSI/Stochastic mean-reversion only when TVM = CYCLE.
- Trailing stops: Tight (1×ATR) in TREND; wider (2×ATR) in CYCLE to breathe.
- Position sizing: Boost size 1.5× in confirmed TREND (with rising ADX); reduce in CYCLE.
TVM doesn't give direction – pair with +DI/-DI or price slope for bias.
The Superpowers and the Fine Print
Strengths
- True self-adaptive regime detection – no fixed lookbacks.
- Cuts whipsaws by disabling wrong-tool signals.
- Lightweight and fast – works even on tick charts.
Limitations
- First ~50 bars unreliable while filters stabilize.
- Sensitive to gaps or thin data – pre-smooth inputs on wild assets.
- Binary view can oversimplify mixed regimes – add VHF or ATR for nuance.
Your TVM Launch Checklist
- Plot TVM ribbon/histogram with your favorite strategy indicators.
- Test gating rules on historical trending vs ranging periods.
- Add secondary confirmation (ADX >20 for TREND) if needed.
- Backtest how TVM improves win rate and reduces drawdowns.
- Monitor regime switches for early adaptation cues.
Key Takeaways
TVM uses Hilbert phase stability to instantly classify market regime: Trend or Cycle.
Green light for momentum tools in TREND; red light for oscillators in CYCLE.
Cuts false signals dramatically by matching strategy to current personality.
Ultra-light, no repaint, real-time ready – but needs warm-up and clean data.
Add this one-bit genius as a gatekeeper and watch your system adapt like a pro. Stay in the right mode and trade sharp!
Related Terms
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