From Mladen Rakic:
Theory:
Tim Tillson (inventor of the T3 indicator) used the Generalized DEMA (Double EMA) in the T3 calculation. Most people do not know that there are 3 "levels" of that T3 calculation :
- GDEMA (as the first "level")
- GDEMA of GDEMA (as the second "level") and
- GDEMA of GDEMA of GDEMA (which is the T3).
In this indicator you can chose which "level" of the 3 GDEMA's you wish to be displayed.
It is a sort of 3-in-1 indicator (since it is displaying the above described "levels"). It is also using self adjusting levels in order to identify trends. Instead of using slope of the calculated value, crosses of levels are used as trend direction, and that way they are filtering out the less significant slope changes that could lead to false signals.
Usage:
You can use the color changes of the values as signals.
PS: the "big picture" example where all 3 "levels" are displayed (just the type is different, the rest of the parameters is the same)
I did a mt4 version too. On this version I did you have an option of turning the ribbon off if desired.
