Discussion of article "Non-linear indicators"
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
New article Non-linear indicators has been published:
In this article, I will make an attempt to consider some ways of building non-linear indicators and their use in trading. There are quite a few indicators in the MetaTrader trading platform that use non-linear approaches.
The mode is the value that occurs most frequently in the data sample. For example, in the sample 1, 6, 9, 3, 3, 7, 8, the most common number is 3. It will be the mode of the series. However, when analyzing prices, each value can occur only once. Then, in order to calculate the mode, we can use the Pearson empirical equation:
According to the equation, the mode is an unstable indicator (the coefficients go beyond the boundaries of the interval -1…+1). But it can be useful as an addition to other indicators.
Another central measure can be considered the middle of the range. To calculate it, we need to find the half-sum of the maximum and minimum values of the time series. Although mid-range is sensitive to spikes and not very reliable, it is used in some indicators.
This is what all four measures of the central tendency look like on the chart.
Author: Aleksej Poljakov