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Digital Indicators Package
Description
Digital Indicators Package is a set of digital filters generated with the help of a special program and having a complex impulse response. It gives the indicators such properties that are not available for the classical indicators of technical analysis.
The Fast Adaptive Trend Line (FATL) is the estimate of a short-term trend line. The parameters of a low-frequency digital filter are chosen on the basis of the current spectrum of a specific market. Unlike the moving average, FATL has no phase delay regarding the current price and is its average of distribution.
The Slow Adaptive Trend Line (SATL) is the estimate of a short-term trend line. The parameters of a low-frequency digital filter are chosen on the basis of the current spectrum of a specific market. SATL(k) is the average of distribution of FATL(k). The increasing SATL indicates a bull trend, the decreasing line indicates a bear trend.
The Reference Fast Trend Line (RFTL) is the response of the digital FATL filter to the entry price level, taken at the delay equal to the Nyquist interval 1/2F.
The Reference Slow Trend Line (RSTL) is the response of the digital SATL filter to the entry price level, taken at the delay equal to the Nyquist interval 1/2F.
The Fast Trend Line Momentum (FTLM) shows the changing rate (increasing or decreasing) of FATL and is estimated similar to the Momentum indicator using the formula: FTLM(k) = FATL(k) - RFTL(k).
The Slow Trend Line Momentum (STLM) shows the changing rate (increasing or decreasing) of SATL and is estimated similar to the Momentum indicator using the formula: FTLM(k) = FATL(k) - RFTL(k).
The Range Bound Channel Index (RBCI) is the sum of all main market cycles. The parameters of the range filter are chosen on the basis of the current market spectrum. Simplistically - RBCI(k) = FATL(k)-SATL(k). RBCI is a quasi-stationary process, i.e. a process with a limited spectrum. When RBCI approaches its local maximum, prices approach the upper limit of the trading range, and when RBCI approaches its local minimum, prices approach the lower limit of the trading range.
The Perfect Commodity Channel Index is estimated using the formula: PCCI(k) = close(k) - FATL(k). The PCCI is a high-frequency compound of exchange rate oscillations normalized to its own standard deviation.
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