A lot of recent researches have shown that a Pseudo Random Binary Signal is a quite effective test signal to measure the impulse response of a plant. Generally speaking, however, such a response itself is not satisfactory to determine the appropriate control parameters or control inputs. Here, the author intends to estimate the unknown parameters of the First Order Plant with Dead Time by means of correlation method using M-sequence signal. The time constant T and the dead time L of the plant are eatimated with one tracking loop by automatically adjusting delay time .tau. of M-sequence signal according to variations of T and L. In this paper, a three level M-sequence signal is used as a test signal in order to avoid troublesome operations to calculate partial derivatives of a given performance index with respect to the parameters which are usually required in the Model Method. Several experiments with analogue computer using low pass filters as averaging circuits showed good results as expected.