**Abstract**

The recent advances in signal processing techniques have enabled the analysis of biosignals from brain so as to enhance the predictive capability of mental states. Biosignal analysis has been successfully used to characterise EEG signals of unipolar depression patients. Methods of characterisation of EEG signals and the use of nonlinear parameters are the major highlights of this chapter. Bipolar frontopolartemporal EEG recordings obtained under eyes open and eyes closed conditions are used for the analysis. A discussion on the reliability of the use of energy distribution and Relative Wavelet Energy calculations for distinguishing unipolar depression patients from healthy controls is presented. The potential of the application of Wavelet Entropy to differentiate states of the brain under normal and pathologic condition is introduced. Details are given on the suitability of ascertaining certain nonlinear indices on the feature extraction, assuming the time series to be highly nonlinear. The assumption of nonlinearity of the measured EEG time series is further verified using surrogate analysis. The studies discussed in this chapter indicate lower values of nonlinear measures for patients. The higher values of signal energy associated with the delta bands of depression patients in the lower frequency range are regarded as a major characteristic indicative of a state of depression. The chapter concludes by presenting the important results in this direction that may lead to better insight on the brain activity and cognitive processes. These measures are hence posited to be potential biomarkers for the detection of depression.

**Keywords:** depression, relative wavelet energy, wavelet entropy, approximate entropy, Hurst exponent, largest Lyapunov exponent and fractal dimension, surrogate analysis
