Passband Filter Pro MT5 indicator
- Indicadores
- Do Thi Phuong Anh
- Versión: 1.0
- Activaciones: 5
This pass-band oscillator seeks to pass-band out both high and low frequencies from market data to eliminate wiggles from the resultant signal thus significantly reducing lag. This pass-band indicator achieves this by using 2 differenced EMA's of varying periods. (40 and 60).
Trigger points for the pass-band oscillator are added with a RMS cyclic envelope over the Signal line. Output of the pass-band waveform is calculated by summing its square over the last 50 bars and taking the square root of the averaged sum to create trigger levels.
Buy when pass-band crosses above its -RMS line. Short when pass-band crosses below the RMS line.
This indicator also has somewhat unusually big choice of prices - 22 types - you shall find their descriptive names in the drop down choice box for prices (they are self descriptive so there should not be a problem in recognizing what do they stand for)
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MT4 version: https://www.mql5.com/en/market/product/105153
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This strategy is a reversal strategy based on the confluence of a mean reversal signal and a short-term trend reversal signal using the Super Passband Filter Indicator and a moving average crossover signal.
How to use the Passband Filter Pro indicator in trading?
- If the filter line crosses the lower border of the band from bottom to top, we consider opening only buy positions
- If the filter line crosses the upper border of the band from bottom to top, it is a signal to close buy positions
- If the filter line crosses the lower border of the band from top to bottom, this is a signal to close sell positions
- If the filter line crosses the upper border of the band from top to bottom, we consider opening only sell positions
This trading strategy is a decent reversal strategy with relatively accurate reversal signals compared to most trend reversal trading signals. This is because the reversal signals it produce are based on a confluence of a mean reversal signal and a short-term trend reversal signal. Having such confluence allows for a higher win probability.