MetaTrader Indicator PowerSTLM and MetaTrader Indicator STLM-Div Adjustment
Forex Indicators of FTLM (Fast Trend Line Momentum) and STLM (Slow Trend Line Momentum) show the tempo of change (fall or growth) of FATL and SATL and are calculated similarly to indicator Momentum by formulas:
FTLM (k) = FATL (k) - RFTL (k),
STLM (k) = SATL (k) - RSTL (k).
Main difference of FTLM and STLM from classical technical instrument Momentum is that for its calculation not the close prices but smoothed (leveled) in the result of filtration values of the trend line are used. In the result FTLM and STLM turn out more leveled (smoothed) and regular functions than the classical instrument Momentum, and therefore have more forecasting value. FTLM and STLM lines were calculated with observance of all the rules of discrete mathematics as the first differences between the two nearest independent points of range bound channel processes.
Metatrader Indicators based on the low frequency filters:
MetaTrader Indicator PowerSTLM
Metatrader Indicator PowerSTLM combines the power of STLM (Low Frequency Digital Filter) and Bollinger Bands with the usability of Tick Volumes. The indicator shows a possible trend change, when the blue line of oscillator crosses the red median. It determines when the market is overbought/oversold “ when the blue line goes out of the area marked with yellow dotted lines. PowerSTLM provides fine leading signals with a pretty high level of reliability.
MetaTrader Indicator STLM-Div
Metatrader Indicator STLM-Div indicates fractal divergence by STLM Low Frequency Digital Filter. When divergence appears between STLM Filter and the price, it indicates that the current trend will finish soon. A signal to buy is when a new Low-fractal is formed below the previous one and a corresponding STLM value is higher than the previous one. A signal to sell is when a new Up-fractal is formed above the previous one and a corresponding STLM value is lower than the previous value. The indicator has a lot of customizable settings.
ADJUSTMENT
First Step – Spectral analysis.
For example Let's adjust the indicators for work on currency GBPUSD timeframe h1
- Open metatrader 4
- Open new chart: GBPUSD File/New Chart/GBPUSD
- Save GBPUSD H1 quotations: Ctrl +S (ASCII Text (*.csv))
- open one quotation in the spectral analyzer Digital Methods Generator: Ctrl+ O (Copyright © 2004-2005, Sergey Iljukhin) ( you can download Spectrym Analyzer for free)
We have defined the maximal peak of the spectrogram for pair GBPUSD timeframe H1 -47 bars (two-days cycle)
Second Step MetaTrader Indicator PowerSTLM Adjustment
-add MetaTrader Indicator PowerSTLM to chart (gbpusd h1)
-open MetaTrader Indicator PowerSTLM properties
-open laying Inputs
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Pass band cutoff frequency of
LPF, P1. |
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Normally a LPF is characterized by a
cutoff frequency but for our purposes we will be using the cutoff expressed
in bars. All swings of the price of the period more than P1 will be
suppressed. In classical MA it corresponds to the moving average period.
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Stop band frequency, D1 |
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The sharpness of the transition from
stop band to pass band can not be ideal due to a computer limited speed. The
recommended value for FATL is 2 days. For slow filters such SATL the
difference between D1 and P1 need to be more significant. |
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Ripples in the pass band, R.
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That value needs to be set up as low as
possible in order to decrease distortions. |
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Stop Band attenuation, A1. |
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That value defines attenuation in stop
band region. The recommended value is -40dB. -40dB corresponds to 100 times
attenuation. |
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Delay, Bar. |
P1 = 47 bar -maximal peak
D1 we select it in
such a way that the filter's order should not exceed 1500 elements (that's a
limitation of the dll); if the maximum value is used, the filter is faster but
less smooth. For example D1=40
A1 = 40-70
Delay2, Bar. Roughly = P1/2 = 47/2 = 23
MetaTrader Indicator STLM-Div adjustment
-add MetaTrader Indicator STLM-Div to chart
(gbpusd h1)
- change Filters properties same as for MetaTrader
Indicator PowerSTLM
P1=47 D1 = 40 A1= 40 Delay2 = 23
BJF Trading Group
http://iticsoftware.com
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