Signal indicator of the popular BrainTrend1 trading system with preliminary price timeseries smoothing.
Many traders experienced difficulties using standard BrainTrendSig1 (BTS1), as it gives many false signals. To solve this problem, it was necessary to use filters and load a chart with additional indicators. In this indicator the issue is solved with the help of JMA smoothing of the price timeseries used in the indicator calculation.
As a result, the indicator has become more stable. JMA-smoothing has greatly lessened the number of false signals. Such intervals are now perceived by the system as flat ones. The system sensitivity to the market volatility can now be managed by "Length_" parameter. Compared with conventional BTS1, the new indicator is a more reliable system. It can even be called a trend tracking system.
Place JMA.mq5 indicator compiled file to MQL5\Indicators.
Translated from Russian by MetaQuotes Software Corp.
Original code: https://www.mql5.com/ru/code/756
When applied to financial markets this method is usually used to determine the moments of prices extreme deviation from a "standard" level.J_TPO
Normalized oscillator displayed as a histogram.