alexgrover

Modular Filter - Spot Trends And Smooth Price

Introduction

This indicator can have a wide variety of usages, and since it is based on exponential averaging then the whole indicator can be made adaptive, thus ending up with a really promising tool. This indicator who can both smooth price and act as a trailing stop depending on user preferences, i tried to make it as reactive, stable and efficient as possible in order to both smooth and spot trends, lets view it more in depth.

The Indicator

line 8 and 9 create two bands, one upper and one lower, then based on certain conditions the indicator will only return a certain band or an average of both with different weights, this weight is controlled by the beta parameter, values of 1 will return a simple filter while values of 0 will return a classical trailing stop.


beta = 0

The indicator can use output values as input, thus using smoother values as input, in order to do so just check "Feedback", this help the overall output to be smoother as well as giving more long terms signals


The amount of feedback is controlled by the feedback weighting parameter, lower values will weight more the output values thus creating smoother results.


Feedback weighting of 0.2

Using beta = 0 thus having the indicator act as a trailing stop while having the feedback option activated return more long terms signals. Notes that the colors are based on the initial conditions of the indicator.


Conclusion

You can replace length and change alpha for any smoothing variable such as the efficiency ratio or anything with scale (1,0), same goes for beta and the feedback weighting parameter, this is why the indicator is "Modular" in addition of providing different usages. This indicator can look like cluster filters (smooth price monarch, forexguru), filters with the ability to follow the price quite fine while being stables. I really hope you find an use to it.

Thanks for reading !


Release Notes: Update : Updated to version 4
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Patreon: https://www.patreon.com/alexgrover

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You can also check out some of the indicators I made for luxalgo : https://www.tradingview.com/u/LuxAlgo/#published-scripts

Comments

Hi,

I really like your script. Just wondering if you this in V3. As i would like to incorporate it into script i have been working on to stop getting bad exits. Would appreciate any help or advise on this. I did try to convert this to v3 myself but i keep getting an error with line 10 "os = a == b ? 1 : a == c ? 0 : os"

Thanks in advance.
+3 Reply
alexgrover MrCrypto_
@MrCrypto_, Thanks for your feedback, will update it to v4, you should still be able to use it in v3 after this update.
+2 Reply
MrCrypto_ alexgrover
@alexgrover, Thanks. looking forward to it
Reply
alexgrover MrCrypto_
@MrCrypto_, Done, enjoy this new version :)
+1 Reply
MrCrypto_ alexgrover
@alexgrover, Thank you very much. Working like a charm. Thanks you.
+1 Reply
Alex; you're an awesome coder; thank you for your generosity and keep it up =D
+2 Reply
@ICEKI, You are very welcome and thank you for the praise as always :)
+1 Reply
Wow, like as usual always fantastic and unique indicators.
+2 Reply
@xcromo, Thanks for the support :)
+1 Reply
This looks promising, nice work as usual!!
+2 Reply
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