Re: Trend Indicators

313
Probability Density Function (PDF) Moving Average indicator for MT4

This is Pdf Ma with floating levels , indicator is mtf with alerts. Color choices are on slope, levels cross, or on mid level cross. Floating level choices are quantile bands, deviation bands,regular floating levels, or no levels. Also have the 33+ price options along with the filter options.

Mladen on probability density function(Pdf):::::

In short, this is a kind of weighted average (or a digital filter, depends how somebody prefers to call it) that is using probability density function to calculate the coefficients and the average. The short description of PDF is :

In probability theory, a probability density function (PDF), or density of a continuous random variable, is a function, whose value at any given sample (or point) in the sample space (the set of possible values taken by the random variable) can be interpreted as providing a relative likelihood that the value of the random variable would equal that sample. In other words, while the absolute likelihood for a continuous random variable to take on any particular value is 0 (since there are an infinite set of possible values to begin with), the value of the PDF at two different samples can be used to infer that, in any particular draw of the random variable, how much more likely it is that the random variable would equal one sample compared to the other sample.
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Re: Trend Indicators

315
mrtools wrote:Sat May 12, 2018 3:51 pm This is Pdf Ma with floating levels....
many thanks to MrTools, Mladen etc for many good ideas of indicators.
This pdf ma is another excellent indicator.
However, even an excellent indicator does not help if we don't know how to use it in trading. I find this lack of information on uses of indicators widespread in this forum. Even a very simple indi such as RSI has many dozen possible uses in trading, not all traders are aware of them.
I want to use few indis in my trading, but I want to understand them well.

Some indis have many parameters, and we can't guess the meaning of many of them.

Could anybody explain how to use pdf ma?
Pdf is of a random variable, what is the random variable shown by the indi?
Is the main signal of the indi the mean value of the pdf?
Why are the levels mostly on the opposite side of the price, unlike bollinger bands where you have x standard deviation on both side?

Many thanks.
The link to the wikipedia article is too general.


Re: Trend Indicators

316
Keepitsimple wrote:Fri Jul 20, 2018 7:10 pm

many thanks to MrTools, Mladen etc for many good ideas of indicators.
This pdf ma is another excellent indicator.
However, even an excellent indicator does not help if we don't know how to use it in trading. I find this lack of information on uses of indicators widespread in this forum. Even a very simple indi such as RSI has many dozen possible uses in trading, not all traders are aware of them.
I want to use few indis in my trading, but I want to understand them well.

Some indis have many parameters, and we can't guess the meaning of many of them.

Could anybody explain how to use pdf ma?
Pdf is of a random variable, what is the random variable shown by the indi?
Is the main signal of the indi the mean value of the pdf?
Why are the levels mostly on the opposite side of the price, unlike bollinger bands where you have x standard deviation on both side?

Many thanks.
The link to the wikipedia article is too general.
You mean too complicated, :)

Re: Trend Indicators

318
Keepitsimple wrote:Sat Jul 21, 2018 11:14 am

No not really. It is just basic probability. What I need is the connection for trading in this indicator
I have learnt there's no such thing as documentation/'user manual' for indicators(except for the Math behind it). Now, I have learnt to live with it. My trick is to use input parameters(if any) as a documentation - each input parameter is a chapter(I take my time to learn it).

I have also learnt that you don't ask how the indicator works, you will hardly get an answer :) - I guess it is because there's no 'One size fits all' usage.

Re: Trend Indicators

319
appsoluxions wrote:Sat Jul 21, 2018 3:16 pm I have learnt there's no such thing as documentation/'user manual' for indicators(except for the Math behind it). Now, I have learnt to live with it. My trick is to use input parameters(if any) as a documentation - each input parameter is a chapter(I take my time to learn it).

I have also learnt that you don't ask how the indicator works, you will hardly get an answer :) - I guess it is because there's no 'One size fits all' usage.
There are thousands of indis and the number grows. Noone has the time to write a manual and who has the time to read (not saying that many guys won't the manual :angel: mladen often describes the indi a bit. When it is an ex4 you can't see the source code what is an big disadvantage when you want to understand what the indi does. We know why he or others only publish ex4 files and accept this.

Other point is that indis often can be used very differently, e.g. oscillators can be used as filter, divergences, OS/OB, patterns (like WoodieCCI), or signals for trends or short trades. The possibilities are variegated. You have to decide. Noone can say how you should use a indicator. There is no best indicator and there is no best setting. With increasing experience you can estimate what suits you but an the beginning it is long long trial and error (also because MT4/5 can't change the parameter on the fly). Try always to compare with other indis and the extrema of parameters. A strange behavior at first glance can be useful, NTL. Fine-tuning is the last step and time-intensive - and time is money, right?

Re: Trend Indicators

320
Krelian99 wrote:Sat Jul 21, 2018 6:10 pm

There are thousands of indis and the number grows. Noone has the time to write a manual and who has the time to read (not saying that many guys won't the manual :angel: mladen often describes the indi a bit. When it is an ex4 you can't see the source code what is an big disadvantage when you want to understand what the indi does. We know why he or others only publish ex4 files and accept this.

Other point is that indis often can be used very differently, e.g. oscillators can be used as filter, divergences, OS/OB, patterns (like WoodieCCI), or signals for trends or short trades. The possibilities are variegated. You have to decide. Noone can say how you should use a indicator. There is no best indicator and there is no best setting. With increasing experience you can estimate what suits you but an the beginning it is long long trial and error (also because MT4/5 can't change the parameter on the fly). Try always to compare with other indis and the extrema of parameters. A strange behavior at first glance can be useful, NTL. Fine-tuning is the last step and time-intensive - and time is money, right?
The last paragraph is the explanation of no 'One size fits all', in so many words :)


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