SATL - Slow Adaptive Trend Line

The SATL indicator, or Slow Adaptive Trend Line, is a digital signal filter that indicates the direction of a general trend. A growing SATL line indicates an uptrend, while a falling SATL line indicates a downtrend. A local minimum SATL line is considered the reversal of a bearish trend, while a local maximum SATL line is considered the reversal of a bull trend. A horizontal SATL line indicates a neutral trend.

The SATL indicator is built on the basis of a low-frequency digital trend filter of a different order than the FATL indicator, which is built on the basis of a low-frequency digital trend filter.

SATL (Slow Adaptive Trend Line): analogous to the classic long moving average, for which a second-order digital low-pass filter is used. The SATL value is the mathematical expectation of a FATL value with the same period.

What is SATL?
Slow Adaptive Trend Line (SATL) is formed with the digital filter of the low frequency FLF-2.

Filter FLF-2 serves to suppress noises and market cycles with longer periods of oscillation. Filters of low frequency FLF-1 and FLF-2 provide attenuation in the stop band with no less than 40 dB and absolutely don’t distort the amplitude and phase of entry discontinuous price series in the pass band (bandwidth).

These properties of the digital filters provide significantly improved (in comparison with simple moving average) noise suppression that in its turn allows reducing sharply the probability of appearance of "false" signals for purchase and sell.

There are no analogues to SATL among widely known technical instruments. This is not a moving "average", but just the adaptive line estimate of a long-term trend.

Unlike moving average, SATL has no any phase delay with regard to current prices.

Use this as a short-term trend.