Slow Adaptive Trend Line is used for suppressing market noises and market cycles with longer oscillation periods.
Slow Adaptive Trend Line (SATL) is formed with the digital filter of the low frequency FLF-2. Filter FLF-2 serves to suppress noises
and market cycles with longer periods of oscillation. Filters of low
frequency FLF-1 and FLF-2 provide attenuation in the stop band with no
less than 40 dB and absolutely don’t distort the amplitude and phase of
entry discontinuous price series in the pass band (bandwidth).
These properties of the digital filters provide significantly improved (in comparison with simple moving average)
noise suppression that in its turn allows reducing sharply the
probability of appearance of "false" signals for purchase and sell. There are no analogues to SATL among
widely known technical instruments. This is not a moving "average", but
just the adaptive line estimate of a long-term trend. Unlike moving average, SATL has no any phase delay with regard to current prices.
Author: Nikolay Kositsin