Self-Adjusting Filters Applied to Moving Averages

Summary

The document describes an indicator that applies a self-adjusting filter, previously defined for price data, to one of four moving-average types: simple, exponential, smoothed, or linear weighted. Its filter size controls the scale of the self-adjusted deviations and may be fractional.

The suggested use is to treat a change in the indicator’s color as a trading signal. The note gives no formula for the filter, explanation of how its adjustment works, chart example, or performance evidence. It also does not specify how to enter or exit trades, choose a filter size, or manage risk, so the signal should be understood as a brief indicator description rather than a validated strategy.

Key ideas

• The indicator applies a self-adjusting filter to one of four moving-average types.
• The available averages are simple, exponential, smoothed, and linear weighted.
• Filter size sets the scale of self-adjusted deviations and may be fractional.
• A change in color is proposed as a signal, but no performance evidence is given.

Tags

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