AIS Predictor Color Noise
- Indicators
- Aleksej Poljakov
- Version: 1.0
- Activations: 5
Despite some drawbacks of the “AIS Color Noise
Filter” indicator, the idea to use it to smooth the price series and forecast prices looks quite attractive.
This is due to several reasons:
first, taking into account several noise components allows building a forecast on factors independent of each other, which can improve the quality of forecasting;
secondly, the noise characteristics of the price series behave quite stably throughout the entire history, which makes it possible to obtain stable results;
and, finally, the noise variability allows us to hope that the forecasting system will be quite sensitive and its response to price changes will be quite fast.
As a result, we got an indicator that, despite all the simplifications, is able to accurately predict the channel in which the price will
move. The main advantage of this indicator is its high speed and ease of learning. The main disadvantage is that the indicator cannot
choose the most significant factors for forecasting.
- LH is a parameter that sets the length of historical data by which the forecast is made. Its allowed value is 0 - 255, while the number of bars that the indicator processes is more than one unit than specified by this parameter.