This is an experimental study designed to attenuate higher frequency oscillations in price and volatility with minimal lag. In this study, a single pole low pass filter is used. The low pass filter's cutoff period is determined either by a fixed user input, or by using an Instantaneous Frequency Measurement (IFM) algorithm. Most radar warning, electronic countermeasures, and electronic intelligence systems employ IFM to identify threats, map the electronic battlefield, and implement deceptive countermeasures. The IFM technique used for this study was devised by John Ehlers. It calculates In Phase and Quadrature (IQ) components using the Hilbert Transform and uses them to determine the dominant price cycle. To generate the channel, the same filter approach is applied to true range then added to and subtracted from the price filter.
Custom bar colors are included for simple wave and trend indication.
เอกสารเผยแพร่
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Updates:
-> Stability Fix: Added correction for NaN values to stabilize initial states. -> Reorganized the script structure.
Hi Donovan. This looks like a great indicator/baseline. Could you please explain how to use this as you intended it in relation to the three bands and also explain the colours for the bars. I am trying to find you on Fiverr but I am not getting any results. What is your username on Fiverr please?
ICEKI
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Nice experimental study; keep it up sir =D
musica117
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How do you use these channels?
Davethaboss
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Donovan.
I just had the highest win percentage trading this. I used a completely different input for the low pass filter then what most people here are using though.
Problem is it still generates false signals. They are not MASSIVE losses but, I shoot for absolute perfection while trading this.
DonovanWall
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@Davethaboss, When trading with any methodology, you're likely to encounter losses. And when utilizing filters of basically any type, you're going to encounter lag and potential false representations of the original series. Keep in mind that this LPF is a single pole, so some higher frequency leakage is still present.
Also, the bar color signals aren't designed for wave prediction, but rather to reflect the current state of price in relation to the signals. The false signals you're encountering depend on how you're choosing to analyze it.
You could always try using confluence with other fairly reliable indicators to enhance your performance.
I understand any trading methodology will have flaws. Simply using your indicator and the one I have created for myself has generated me VERY SIGNIFICANT wins.
Thank you for that!
I have conditions that are met that help me increase my win percentage even more than usual however it means I take less trades.
I was thinking would maybe utilizing some sort of hybrid convolution filter derived from the low pass channel base line do the trick or maybe even an amplitude/acceleration readout when price is either on the upside or downside? I have went through dozens of indicators and very few have given me good consistent signals.
What concept or theory would most likely compliment your wonderful indicator?
ychun81536
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@Davethaboss, Can you give insights on what type of strategy that you use with this low pass filter? I am trying to do similar thing and probably test ema cross over based on this filtered value.
Davethaboss
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@ychun81536, I use a combination of volume indicators, audio analysis (concepts), and chaos theory. Depending on how "sensitive" you set this low pass filter it will give you the first trigger for the trading system. I have another indicator I use that functions as an envelope and when the low pass filter passes above I buy, and if it goes below I sell thereby functioning as a second trigger.
At the moment I am using volume with moving average superimposed and feigenbaum rate of change/differentiation in order to understand how long to stay in a trade. Using these principles, you can take advantage of the market rebate on ByBit. I scalp on 1M.
Balabiott
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My compliments.
You make a so good job with indicators.
Inverse Fisher based are the best ones.
Is there an indicator based on WVAP and Inverse Fisher?
DonovanWall
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@MBK1973, I don't know of any indicators that utilize IFT and VWAP simultaneously, but if you go to my Fiverr page, I can design one based on your specifications.