Standard-Deviation-Filtered N-Pole Gaussian Price Smoother
Summary
This indicator applies a generalized N-pole Gaussian low-pass filter to a selectable price source, then optionally applies a standard-deviation threshold filter to the input, the smoothed output, or both. The pole order and period are configurable, and source choices include conventional price calculations, Heikin-Ashi values, and smoothed Heikin-Ashi variants. The filter is intended to reduce high-frequency movement while limiting lag relative to some other smoothing approaches.
The plotted line changes color with its direction, and signal markers appear when its slope switches from falling to rising or vice versa. The description says calculations above fifteen poles may lose useful numerical precision, although the setting is left open for experimentation. It also notes that smoothing trades noise reduction against lag. No market-specific tests or profitability evidence are supplied, so the line and reversal markers should be treated as indicator outputs rather than validated trading signals.
Key ideas
- The indicator generalizes a Gaussian recursive smoother to a configurable number of poles.
- A standard-deviation filter can suppress small changes in the selected price source, the Gaussian output, or both.
- Users can choose among raw price, Heikin-Ashi, and smoothed Heikin-Ashi source types.
- Line color tracks filter direction, while markers flag changes in direction.
- The document cautions that high pole counts can lose numerical precision and provides no evidence of trading performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.