Digital filter is a digital system that can be used for filtration the digital (discrete) signals defined only in discrete moments of time. It can be realized with the software method on computer.
With computers and modern information systems appearance methods of technical analysis using filtration and mathematical approximation began to develop rapidly. Relative simplicity of their calculation and integrability into information systems has made their effect. Hundreds of indicators have been contrived. And all of them beginning with Moving Averages, RSI, MACD, Momentum, Stochastic, are digital filters because they change signal frequency spectrum in some direction. In other words they have their transfer function with the gain factor depending on frequency. For example, for Moving Averages this factor is proportionate to function sin (f)/f, where f is a normalized frequency. However during the technical indicators development the transfer function is neither calculated by their founders at all nor is advised to the product users. Therefore change in direction the signal frequency spectrum is remained unknown for the most of the users and that fact drives them in obviously disadvantage. The main issue roots here.
The second problem is in the following. Time history of changing the currency rates and stock price for goods (commodity stock prices) or equities is always represented as a digital signal........
Vladimir Kravchuk , 2000-2001
Read more about Digital Filters:
V. Kravchuk Articles about Digital Filters (FATL, SATL, FTLM, STLM, RBCI....):
Here, you can find articles by the V. Kravchuk on new method of technical analysis based on digital filters were published in the "Valyutny Speculyant" magazine in 2000-2002
FATL and SATL - particular case low-pass filter (Low Frequency Filters Indicator)
FTLM and STLM - particular case Trend Line Momentum Indicator
Free Downloads:
Digital Filres Generator and Spectrum Analyzer (authors site russian ver.) Help file
DLLs
Having read through Vladimir Kravchuk articles we have tried to automate system for eur/usd and gbp/usd, described in Vladimir Kravchuk article. For development of indicators we used DLL, which is distributed free of charge along with the Digital Methods Generator (Copyright © 2004-2005, Sergey Iljukhin http://fx.qrz.ru/) |
