mrtools wrote: Mon Jan 23, 2023 3:48 pm Made this one with a filter.

Gratitude for those advanced trading indicators I'm tryining to learn and just hella confused about what a filter is. Can some body tell me what this is or does and how to use it? Please.

chickensword wrote: Mon Jan 23, 2023 1:42 pm May someone please add the recent filtering to Rsi to an Relative Momentum Index(Rmi) also?

What is recent price filtering and how do we use it? I'm totally confused

Edit: Solved - Answer is here.

boytoy wrote: Mon Jan 23, 2023 9:23 pm Gratitude for those advanced trading indicators I'm tryining to learn and just hella confused about what a filter is. Can some body tell me what this is or does and how to use it? Please.

What is recent price filtering and how do we use it? I'm totally confused

What is Price Filtering in MT4?

This is Mladen's explanation:

Theory:

In technical analysis we can state that it's all about filtering. Filtering the "insignificant", filtering the "false", and so on ... almost all technical indicators are designed to "filter" out something.

Here is one indicator that is filtering the source of it : the prices. It is using a sort of "deviation" for filtering. But, in order to not keep it simple the "deviation" used is a self adjusting deviation (it depends on the filter size). That way it filters out the desired price changes and leaves us with the filtered values.

Usage:

The filter size can be fractional. Some experimenting with the period and filter size is advised prior to using the indicator for trading decisions.

You can use the color change as signals when using this indicator.


PS: the reason for the * next to "deviation". Even though it is similar to standard deviation, it is actually very different. Here is a comparison of the "deviation" used by the filter (upper) and standard deviation (lower).


Also, it seems that these days the "self adjusting" word combination is often patched to what usually is called repainting otherwise. This indicator does not repaint. But for demonstration of how it adjusts, here are 3 instances of the "deviation" used that are having different value just because of the filter size. As it can be seen, the values are different, and they are adjusted to the calculated values - but without repainting.


Hope this helps!

mrtools wrote: Tue Jan 24, 2023 4:46 am
In technical analysis we can state that it's all about filtering. Filtering the "insignificant", filtering the "false", and so on ... almost all technical indicators are designed to "filter" out something.

Wrapping my pea head around this.
So is filtering just like adding an invisible signal line? Or am I on the wrong path here? Filter Filter Filter... I know the folks on here can help me understand it!

Okay let me ask first....

On the options it's got:

Filter to use (<= 0, no filter)
Filter period (0 to use mi period)

If I were to input a filter of 2.0 is that like a Standard Deviation of 2.0?

And if I were to input a filter period of 9 is that like a signal line of 9 period moving average? Or am I just completely off track?

boytoy wrote: Tue Jan 24, 2023 2:50 pm Wrapping my pea head around this.
So is filtering just like adding an invisible signal line? Or am I on the wrong path here? Filter Filter Filter... I know the folks on here can help me understand it!

Okay let me ask first....

On the options it's got:

Filter to use (<= 0, no filter)
Filter period (0 to use mi period)

If I were to input a filter of 2.0 is that like a Standard Deviation of 2.0?

And if I were to input a filter period of 9 is that like a signal line of 9 period moving average? Or am I just completely off track?

Was a typo when I commented the code, should be 0 = rmi period (not mi period) and > 0 will be the regular filter period.

mrtools wrote: Tue Jan 24, 2023 3:11 pm Was a typo when I commented the code, should be 0 = rmi period (not mi period) and > 0 will be the regular filter period.

That's cool. So when you say Regular Filter period, what happens if a trader adjusts the options and inputs (for argument's sake):

Filter to use (<= 0, no filter): 0.5
Filter period (0 to use mi period): 2
What would the 0.5 and a 2.0 exactly do? I'm really trying to figure this out

boytoy wrote: Tue Jan 24, 2023 8:18 pm That's cool. So when you say Regular Filter period, what happens if a trader adjusts the options and inputs (for argument's sake):

Filter to use (<= 0, no filter): 0.5
Filter period (0 to use mi period): 2
What would the 0.5 and a 2.0 exactly do?

The 2.0 will be a bit of a large jump. Just increase your increments by 0.1 each time as price filtering is still a form of smoothing and will help in filtering the false signals without making things too laggy.

boytoy wrote: Tue Jan 24, 2023 8:18 pm That's cool. So when you say Regular Filter period, what happens if a trader adjusts the options and inputs (for argument's sake):

Filter to use (<= 0, no filter): 0.5
Filter period (0 to use mi period): 2
What would the 0.5 and a 2.0 exactly do? I'm really trying to figure this out

Its hard for me to tell you the best settings because every trader trades differently what I use may not work for you or vise versa. So probably best for you to test it out and find out what is best for your style of trading. Me personally on the Rmi am liking on a 15 minute chart default settings except the filter at 2. Kind of lagging but don't mind the lagging too much.

Jimmy wrote: Wed Jan 25, 2023 6:08 pm The 2.0 will be a bit of a large jump. Just increase your increments by 0.1 each time as price filtering is still a form of smoothing and will help in filtering the false signals without making things too laggy.

Now we're getting somewhere. Indeed the 2.0 in the Filter To Use option caused it to become laggy but smoother so that mystery has now been solved.

mrtools wrote: Thu Jan 26, 2023 1:53 am Its hard for me to tell you the best settings because every trader trades differently what I use may not work for you or vise versa. So probably best for you to test it out and find out what is best for your style of trading. Me personally on the Rmi am liking on a 15 minute chart default settings except the filter at 2. Kind of lagging but don't mind the lagging too much.

So the Filter to use is the price smoother got it, how about the Filter Period? What does increasing or decreasing this do?

Zero is using the normal indicator period but what would 9 do? Does Period = the amount of bars on a chart?

Filter to use (<= 0, no filter): 2.0 (Yes too laggy!)
Filter period (0 to use mi period): 9 (I'm not sure what this does still)

boytoy wrote: Thu Jan 26, 2023 2:11 am Now we're getting somewhere. Indeed the 2.0 in the Filter To Use option caused it to become laggy but smoother so that mystery has now been solved.



So the Filter to use is the price smoother got it, how about the Filter Period? What does increasing or decreasing this do?

Zero is using the normal indicator period but what would 9 do? Does Period = the amount of bars on a chart?

Filter to use (<= 0, no filter): 2.0 (Yes too laggy!)
Filter period (0 to use mi period): 9 (I'm not sure what this does still)

It's how many bars back you want the indicator to calculate. In a way it is similar to the filter in that the larger the number the more lag you have.

mrtools wrote: Thu Jan 26, 2023 3:25 am It's how many bars back you want the indicator to calculate. In a way it is similar to the filter in that the larger the number the more lag you have.

Understood! Thanks for helping me get my head around it guys.

So from this discussion price filtering in MT4 is:

Filter to use (<= 0, no filter): 0.0 ⬅ Smoothing
Filter period (0 to use rmi period): 9 ⬅ How many price bars back