PFE2 Smooth Oscillator: Trend Histograms and Historical Recalculation

Summary

PFE2 is described as a smooth oscillator displayed as a color histogram, intended to show current market trends. The document offers little detail about its calculation or interpretation: the original author is unknown, and no explanation of the indicator’s components or trading rules is provided. It says that the indicator has one input parameter and recommends setting that parameter to its lowest value for successful use.

The main technical note concerns a defect in the original algorithm. The earlier implementation used future data to construct historical values, which can make past signals look different from what would have been observable in real time. This version reverses that behavior so that it uses past data instead. The text provides no formula, chart evidence, performance results, or guidance on markets and timeframes, so the claimed trend visibility and parameter recommendation cannot be independently assessed from this description.

Key ideas

• PFE2 presents a smooth oscillator as a color histogram intended to show current trends.
• The indicator description does not explain its calculation or provide its original author.
• The text recommends using the lowest value for its sole input parameter.
• The revised algorithm uses past data instead of future data to construct historical values.
• No performance evidence or detailed trading rules are supplied.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.