Zero Lag indicator - Technical questions
- Repainting indicators are useless. If you fix it, you will not see what you currently do. You will see that it is useless.
- No indicator can predict the future and that is what would be necessary to generate what a repainting indicator shows.
You can't fix what is not broken! The Hodrick–Prescott filter is designed for analysis of purely historical static data. It was not designed and should not be used for currently evolving data and causes misleading predictions when used dynamically. This is because the algorithm changes during each new bar iteration.
Two sided Hodrick Prescott filter is a non-causal indicator - ie: it recalculates. Saying that it "repaints" and that it is, because of that, useless, would be same as saying that Fourier regression analysis is repainting and is hence useless (when at least a half of world would literally stop without it)
On the other hand, one sided Hodrick Prescott filter is not something you shall find floating on the net and frankly I doubt that people would "like" the results it is producing
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
You agree to website policy and terms of use
Hi Everyone,
I recently stumbled onto a very particular old indicator (Hodrick prescott filter - attached) - the historical data it leaves is working extremely well with my other indicators for the gold market, however the indicator has one very serious problem - it is a repainting indicator (the historical line it leaves on the charts is accurate, however the most recent 10-15 bars are being constantly re-calculated, making it virtually useless for trading purposes (it generates signals that are false, because the line it draws changes position once the price changes).
My questions are the following:
1) is it possible to fix the indicator somehow to instead report data without repainting? (i want it to work like a normal MA)
2) if not - do you by chance know other non-repainting indicators that leave the same values as this one?
Combined with others, this indicator works very well for the gold market, but in its current state its useless for trading, I'd like to know if there's any chance to fix it or to find a better alternative.
Any guidance will be deeply appreciated.
<*.ex* file deleted>