DonovanWall

Range Filter [DW]

This is an experimental study designed to filter out minor price action for a clearer view of trends.

Inspired by the QQE's volatility filter, this filter applies the process directly to price rather than to a smoothed RSI .

First, a smooth average price range is calculated for the basis of the filter and multiplied by a specified amount.
Next, the filter is calculated by gating price movements that do not exceed the specified range.
Lastly the target ranges are plotted to display the prices that will trigger filter movement.

Custom bar colors are included. The color scheme is based on the filtered price trend.
Release Notes: Updates:

-> Migrated to v4.
-> Range Filter and the bands are now calculated in a singular function.
-> There are now two different calculation methods for the filter. Select the type you want to use via the "Filter Type" input. Type 1 is the original formula.
-> Multiple range sizing methods are now available. You can choose from the following scales:
- Points
- Pips (Works best with forex pairs, obviously)
- Ticks
- % of Price
- ATR
- Average Change (Default. This is the original sizing method.)
- Standard Deviation
- Absolute (Absolute numerical value)
-> Range smoothing is now optional, and you can specify your smoothing length. Smoothing only affects dynamic scales (ATR, Average Change, and Standard Deviation).
-> Filter movement can now be determined using wicks or close. This can be specified via the "Movement Source" input.
-> Stability Fix: Added correction for NaN values to stabilize initial states.
-> Reorganized the script structure.
-> Revamped the color scheme.
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Comments

Congrats to the developer for this superb indicator. I would like to program an alert whenever the filter goes red or green, but as far as I understand, it has a lot of invisible changes in color (cross between Color0 and Color1), and therefore it causes to many noise/false-signals. How can I make an alert that corresponds to the visual core trend Color0 /Color1 cross? Thanks
+3 Reply
DonovanWall aciriaco
@aciriaco, There aren't invisible transitions in the color. If you want to code signals for when filter direction changes, you need to use the upward and downward variables. These vars save the last directional state of the filter.
To make the signals, you can use a conditions like these:

bull_sig = upward==0 and upward
bear_sig = downward==0 and downward

That will signal the change in var states.
Reply
aciriaco DonovanWall
@DonovanWall, thanks but no signal is triggered with the bull_sig and bear_sig as you stated. Made it work with a cross(upward,downward). Keep the good codes coming!!
Reply
DonovanWall aciriaco
@aciriaco, Whoops. I left out the previous bar identifier. My apologies.

What I meant was:

bull_sig = upward==0 and upward
bear_sig = downward==0 and downward

But yes, cross conditions for the variables work as well since they move between 0 and 1. Glad you got it to work.

Edit: apparently I didn't leave it out. TV comments don't like to support brackets I guess. You need to reference the previous bar for the ==0 parts. lol
Reply
This indicator is perfection. So far my favourite on this platform. Thanks!
+3 Reply
Thank you for your work! It is really a great indicator !
+3 Reply
Hey @DonovanWall, great idea! The QQE is pretty powerful, would be great to see more applications of it on price action rather than rsi!
Cheers
+2 Reply
Hey Donovan, thank you for the great indicator.
May you please explain the difference between the type 1 and type 2 filter?
Thanks again...
+1 Reply
DonovanWall giulius777
@giulius777, Great question. For type 1, when price distance from the filter exceeds the range threshold, the filter will be moved to a location in which price is back on the threshold. For type 2, the filter will move toward price in a "brick" like fashion. I suppose you could say it's somewhat similar to Renko or PnF in that it will only move in increments of the range size.
Reply
Thank you
+1 Reply
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