mrtools wrote: Fri Jan 04, 2019 6:07 am And the most "problematic" parameter : the causal. In original filters (in digital signal processing) they are mostly using a non-causal (centered) mode since that way they can get a much clearer signal and a delay in a couple of hertzs is not noticeable at all. But in TA it can cause problems.

Addition

Non-causal filters are used in digital signal processing for system identification only, that means offline (non-causal means it can look into the future). The final observer with the mathematical estimated model works online, causal. Since you have natural laws behind it and most systems are slow (even a combustion engine is slow), the delay is small and absolutely ok. In financial markets you have no real natural laws behind it. An OB/OS market can still run for 10 or 30 more bars in the same direction in a strong trend. Also sudden and strong amplitudes in price are possible here. Imagine a sudden jump in acceleration of your car. Either the engine jumps out of the engine bay (but the power couldn't be brought on the street - slippage) or you hit or were hit by something, from behind or in front of you. "Support and resistance" has another meaning here and when you love your car, you'd better avoid "supports" or "resistances" Boxing is a good example either