Correlation Trend Indicator (CTI) Indicator Explained

John Ehlers' Correlation Trend Indicator (CTI) asks a statistical question: how correlated is price with a straight upward line over the window? The answer, from −1 to +1, is a pure trend quality score — +0.9 means price has moved like a ruler; 0 means no linear trend at all.

How It Works

• Pearson correlation between price and time over N bars.
• +1 = perfect uptrend, −1 = perfect downtrend, 0 = trendless.
• Unlike slope, CTI measures cleanliness of the trend, not its steepness.

How to Trade It

CTI is a superb regime gate: require |CTI| > 0.7 before trend entries, and stand down when it hovers near zero. Crosses through ±0.5 also serve as trend start/end events. Combine with Slope to demand both steep and clean.

Building It in Setup.Cash

Add Correlation Trend Indicator (CTI) in the strategy builder — the length input controls its sensitivity — and use its value in any entry, exit, or filter condition. You can also combine it with other tools in the Indicators Lab or via the AI indicator generator. Compare with the Efficiency Ratio, the other trend-quality score. For the full category overview, see the advanced trend library guide.

Trend tools reward patience: pick one, pair it with a volatility or regime filter, and backtest before trading it live.