When smoothing data there is always a trade-off between lag and removal of noise. Gaussian filter has a consistently low lag and a very smooth curve.
This filter works for poles higher than the 4 (usual usage). Mathematically maximum poles is 15 after which coefficients are too high to see any difference.
By tuning Lag and number of Poles you can achieve a very smooth MA with least lag possible. It's just as good as 3rd gen moving averages and can be used as input feed for other indicators.
@bitmexstorm, I've tried the code you kindly shared with us but there's something strange. The line changes colour but the "long" or "short" alarm appears like 3 candles afterwards. Could you please let us know what's the code so that the alarm is activated because of COLOUR CHANGE? thanks very much
bitmexstorm
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@Orph5781, That's to be expected, because the system waits for the confirmation that the line colour has changed, which is usually on the candle close
Orph5781
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@bitmexstorm, I see what you say. However, instrad of activating on candle close, it appears on the third following candle close, it has delay of three candles
josephquinn8989
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How are you supposed to code a long,short entry with this? Not very clear to me as a noob.
line29: results := results + sum