A method of signal processing and, in particular, a method of decomposing non-stationary signals representative of a physiological phenomenon into functional components, and to estimate parameters characterizing each of those functional components. The method utilises means for estimating dynamic and baseline trends in the time course of the signal, means for dividing the non-stationary signal into the segments over which the functional components are developed and means for compensating for overlap from QGK matched to preceding functional components to form an ECK. The compensation comprises means for transforming the ECK to a frequency domain, means for estimating the weight and dispersion parameters of the QGK, and validation of the parameter reliability, means for estimating the onset time of the QGK, means for expansion of the model of the non-stationary signal after each cycle of recursion, means for removal of unfavourable QGKs and rearrangement of remaining QGKs and means for creating partial models of the non-stationary signal with parameters belonging to predefined classes.