Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Aston01

Smoothing Color Change in MA Signal Line ?

Recommended Posts

Has anyone come across a good technique for smoothing the color defining transitions without disturbing the entry and exit points of blatant directional changes?

 

I am sure inevitably someone is going to come on here and say that further smoothing of an MA will lessen false signals but delay entry, and I don't disagree.

 

BUT due to the standard way of coding a color alternating signal line being an either or approach, minuet changes in the direction are approached as veritable True or False in nature. All of this ultimately allowing for what I personally refer to as micro chop or false signals.

 

HMAChopMicro.jpg

 

 

I have had some success in limiting the issue by replacing the standard price input with (High + Low)/2 as opposed to Close, as well as changing the number of look back bars from 1 to 2.

 

 

{ Color criteria }
if (Value1 > Value1[2]) then 
SetPlotColor[colourDeltaBar](1, upColour)
else if (Value1 < Value1[2]) then 
SetPlotColor[colourDeltaBar](1, downColour);

 

I have contemplated using a percentage of variance or some form of a slope calculation to allow for a margin of error, but I just can't seem to wrap my head around which would be more effective and adaptive to various circumstances.

 

Any suggestions would be much appreciated.

Share this post


Link to post
Share on other sites
Has anyone come across a good technique for smoothing the color defining transitions without disturbing the entry and exit points of blatant directional changes?

 

I am sure inevitably someone is going to come on here and say that further smoothing of an MA will lessen false signals but delay entry, and I don't disagree.

 

BUT due to the standard way of coding a color alternating signal line being an either or approach, minuet changes in the direction are approached as veritable True or False in nature. All of this ultimately allowing for what I personally refer to as micro chop or false signals.

 

HMAChopMicro.jpg

 

 

I have had some success in limiting the issue by replacing the standard price input with (High + Low)/2 as opposed to Close, as well as changing the number of look back bars from 1 to 2.

 

 

{ Color criteria }
if (Value1 > Value1[2]) then 
SetPlotColor[colourDeltaBar](1, upColour)
else if (Value1 < Value1[2]) then 
SetPlotColor[colourDeltaBar](1, downColour);

 

I have contemplated using a percentage of variance or some form of a slope calculation to allow for a margin of error, but I just can't seem to wrap my head around which would be more effective and adaptive to various circumstances.

 

Any suggestions would be much appreciated.

 

there are hundreds of ways to smooth a MA...

 

eg.

 

use medianprice instead of close

Share this post


Link to post
Share on other sites

Aston,

 

Preface: :) For real life, though, you said it just right with

I have contemplated using a percentage of variance or some form of a slope calculation to allow for a margin of error, but I just can't seem to wrap my head around which would be more effective and adaptive to various circumstances.

 

The simplest, non-adaptive start I can give you

[pseudocode]

inputs:
…
nSdevLen(200),
…
nBrktMlt1(.6),   { manually tweak this input and your value1’s length parameter to get goldilock’s settings }
…

// also add a flatColor(neutralcolor) input...		
;

vars:
…
degree(0),
sdev(0),
colorThreshold(0),
…
;

//////////////////
{Color criteria}
degree = absvalue(arctangent(nlAvg- nlAvg[1]));
sdev = stddev(degree, sdevLen);
colorThreshold = sdev * nBrktMlt1;

{ 
notes: 
> [2] changed to [1] throughout this example - why wait?  .  
> nlAvg equivalent to your Value1…
}


if (degree <=  colorThreshold)  then begin
 SetPlotColor(1, flatColor);

end else begin
if (nlAvg > nlAvg [1]) then     
  SetPlotColor(1, upColor)

else
 SetPlotColor(1, dnColor;

end;   // if (degree >  colorThreshold)

 

///

 

 

This concept could also be modified to keep the dnColour during your red circle (because angles haven’t changed sufficiently to up )

 

You could also get more fuzzy using GradientColor reserved word, etc. hth

Share this post


Link to post
Share on other sites
Has anyone come across a good technique for smoothing the color defining transitions without disturbing the entry and exit points of blatant directional changes?

 

I am sure inevitably someone is going to come on here and say that further smoothing of an MA will lessen false signals but delay entry, and I don't disagree.

 

BUT due to the standard way of coding a color alternating signal line being an either or approach, minuet changes in the direction are approached as veritable True or False in nature. All of this ultimately allowing for what I personally refer to as micro chop or false signals.

 

HMAChopMicro.jpg

 

 

I have had some success in limiting the issue by replacing the standard price input with (High + Low)/2 as opposed to Close, as well as changing the number of look back bars from 1 to 2.

 

 

{ Color criteria }
if (Value1 > Value1[2]) then 
SetPlotColor[colourDeltaBar](1, upColour)
else if (Value1 < Value1[2]) then 
SetPlotColor[colourDeltaBar](1, downColour);

 

I have contemplated using a percentage of variance or some form of a slope calculation to allow for a margin of error, but I just can't seem to wrap my head around which would be more effective and adaptive to various circumstances.

 

Any suggestions would be much appreciated.

 

Hi Aston,

 

I have been using a heat-map approach to determining support and resistance for my grid trading application. This technique could be adapted to MAs, Please see my last blog post here and then PM me if you are interested in pursuing.

 

Best

 

John

Share this post


Link to post
Share on other sites

Tams - I gave median a whirl and it seemed make an improvement in the smoothing without much lag...Thanks for the idea

 

John - Interesting idea ..I'll have to do some more reading on it

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • ELV Elevance Health stock, watch for an upside gap breakout at https://stockconsultant.com/?ELV
    • ORLY OReilly Automotive stock, nice top of range breakout, from Stocks to Watch at https://stockconsultant.com/?ORLY
    • Date: 28th March 2025.   Market Selloff Deepens as Tariff Concerns Weigh on Investors     Global stock markets extended their losing streak for a third day as concerns over looming US tariffs and an escalating trade war dampened investor sentiment. The flight to safety saw gold prices surge to a record high, underscoring growing risk aversion. Stock Selloff Intensifies The MSCI World Index recorded its longest losing streak in a month, while Asian equities saw their sharpest decline since late February. US and European stock futures also signalled potential weakness, while cryptocurrency markets retreated and bond yields edged lower. Investors are scaling back their exposure ahead of President Donald Trump’s expected announcement of ‘reciprocal tariffs’ on April 2. His latest move to impose a 25% levy on all foreign-made automobiles has sparked fresh concerns over inflation and economic growth, prompting traders to reassess their strategies. Investor Strategies Shift Market experts are adjusting their portfolios in anticipation of heightened volatility. ‘It’s impossible to predict Trump’s next move,’ said Xin-Yao Ng of Aberdeen Investments. ‘Our focus is on companies that are less vulnerable to tariff policies while taking advantage of market dips to find value opportunities.’ Yield Curve Signals Economic Concerns In the bond market, the spread between 30-year and 5-year US Treasury yields widened to its highest level since early 2022. Investors are bracing for potential Federal Reserve rate cuts if economic growth slows further. Long-term Treasury yields hit a one-month peak as inflation risks tied to tariffs spurred demand for higher-yielding assets. Boston Fed President Susan Collins noted that while tariffs may contribute to short-term price increases, their long-term effects remain uncertain. Gold Hits Record High as Safe-Haven Demand Rises Amid market turbulence, gold prices soared 0.7% on Friday, reaching an all-time high of $3,077.60 per ounce. Major banks have raised their price targets for the precious metal, with Goldman Sachs now forecasting gold to hit $3,300 per ounce by year-end. Looking Ahead As investors digest economic data showing US growth acceleration in Q4, attention will turn to Friday’s release of the personal consumption expenditures (PCE) price index—the Federal Reserve’s preferred inflation measure. This data will be critical in shaping expectations for future Fed policy moves. With markets on edge and trade tensions escalating, investors will closely monitor upcoming developments, particularly Trump’s tariff announcement next week, which could further dictate market direction.   Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Andria Pichidi HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Crypto hype is everywhere since it also making new riches as well, i however trade crypto little as compared to other forex trading pairs.
    • The ewallets can be instant withdrawals like skrill etc or they can also pay through crypto but not tested their crypto withdrawals so far.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.