Let's consider GBP /USD pair in the D1 timeframe. Save the quotations in .csv format and open one quotation in the spectral analyzer Digital Methods Generator (Copyright © 2004-2005, Sergey Iljukhin http://fx.qrz.ru/)
picture 1- GBP/USD Spectral Analysis
The figure shows the following peaks: 93, 63, 45.5, 34, 24, 19, 16, 12, 5 bars (days).
We believe that the primary GBP/USD cycle has a period of 93 trade days.
1/2 of the primary cycle - 45,5 trade days
1/3 of the primary cycle - 34 trade days
1/4 of the primary cycle - 24 trade day
1/6 of the primary cycle - 16 trade days etc.
Now let's configure the Low Frequency Filters indicator that is similar to FATL and SATL.
picture 2 - Low Frequency Filters indicator
Let's have a look at the Trend Line Momentum (STLM, FTLM) indicator configuration.
Trend Line Momentum = Low Frequency Filters (fast, i.e. without delay extern int Delay_1=0;) - Frequency Filters (slow, i.e. with delay extern int Delay_1=K;)
where K is an integer. In real life K is selected based upon the Nyquist frequency. We recommend a trial and error method selection.
picture 3 - Trend Line Momentum indicator
Boris Fesenko
BJF Trading Group
Read Article: Example on using Digital Filters EUR/USD
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