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Normalized Advanced Decomposition Oscillator
The motivating intuition behind this:
The principles behind the decomposition of sound can be extrapolated to other types of data, such as stock price movements or time series data.
Sinusoidal (Sine) Components: These could correspond to long-term trends in the stock market, similar to how a sine wave has a consistent and predictable pattern. These might be driven by broader economic trends, market cycles, or long-term company performance.
Noise Components: This could represent the daily volatility and fluctuations in stock prices that seem to be random or caused by unpredictable events. Noise is usually considered to be statistical outliers or "random walk" components in the time series data.
Transient Components: These could correspond to sudden and significant changes in stock price, such as those caused by earnings announcements, geopolitical events, or changes in company leadership. They are typically short-lived but can have a large impact, similar to transients in sound.
How's it different?
Unlike your usual run-of-the-mill indicators, our Normalized Advanced Decomposition Oscillator (NADO) breaks down price movements into three parts: the Trend, the Noise, and the quick, notable price changes we call the Transient. Each of these gets its own line on the chart, giving you a comprehensive breakdown of what's going on in the market. Plus, they're all normalized so you can easily compare 'em.
How to use it?
It's pretty straightforward. The blue line shows the trend, the red line represents market noise or volatility, and the green line flags significant short-term price changes. If the green line pops above the blue, you might be seeing a price increase soon. If it dips below the blue, get ready for a potential price drop. See the red line going crazy? That's market noise increasing, meaning things might get a bit unpredictable.
Which markets is it meant for?
NADO is a versatile beast. It'll work in markets that see a lot of price volatility. If you're finding it hard to pin down the trend because of all the noise, NADO is your best friend.
Best conditions to use it?
This tool shines in uncertain markets. If the market's all over the place and you can't make heads or tails of the trend, whip out the NADO. It'll separate the trend from the noise, making it easier for you to see what's going on.
The principles behind the decomposition of sound can be extrapolated to other types of data, such as stock price movements or time series data.
Sinusoidal (Sine) Components: These could correspond to long-term trends in the stock market, similar to how a sine wave has a consistent and predictable pattern. These might be driven by broader economic trends, market cycles, or long-term company performance.
Noise Components: This could represent the daily volatility and fluctuations in stock prices that seem to be random or caused by unpredictable events. Noise is usually considered to be statistical outliers or "random walk" components in the time series data.
Transient Components: These could correspond to sudden and significant changes in stock price, such as those caused by earnings announcements, geopolitical events, or changes in company leadership. They are typically short-lived but can have a large impact, similar to transients in sound.
How's it different?
Unlike your usual run-of-the-mill indicators, our Normalized Advanced Decomposition Oscillator (NADO) breaks down price movements into three parts: the Trend, the Noise, and the quick, notable price changes we call the Transient. Each of these gets its own line on the chart, giving you a comprehensive breakdown of what's going on in the market. Plus, they're all normalized so you can easily compare 'em.
How to use it?
It's pretty straightforward. The blue line shows the trend, the red line represents market noise or volatility, and the green line flags significant short-term price changes. If the green line pops above the blue, you might be seeing a price increase soon. If it dips below the blue, get ready for a potential price drop. See the red line going crazy? That's market noise increasing, meaning things might get a bit unpredictable.
Which markets is it meant for?
NADO is a versatile beast. It'll work in markets that see a lot of price volatility. If you're finding it hard to pin down the trend because of all the noise, NADO is your best friend.
Best conditions to use it?
This tool shines in uncertain markets. If the market's all over the place and you can't make heads or tails of the trend, whip out the NADO. It'll separate the trend from the noise, making it easier for you to see what's going on.
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