Has anyone come across a good technique for smoothing the color defining transitions without disturbing the entry and exit points of blatant directional changes?
I am sure inevitably someone is going to come on here and say that further smoothing of an MA will lessen false signals but delay entry, and I don't disagree.
BUT due to the standard way of coding a color alternating signal line being an either or approach, minuet changes in the direction are approached as veritable True or False in nature. All of this ultimately allowing for what I personally refer to as micro chop or false signals.
I have had some success in limiting the issue by replacing the standard price input with (High + Low)/2 as opposed to Close, as well as changing the number of look back bars from 1 to 2.
I have contemplated using a percentage of variance or some form of a slope calculation to allow for a margin of error, but I just can't seem to wrap my head around which would be more effective and adaptive to various circumstances.
BTW - In the above image I am using a Hull MA, and I am aware there are various different options for a MA, yet they almost all seem to suffer the same issues even in situations using a 50 bar look back. Which leads me to believe that the issue is more related to the finickiness of the color changing logic then the MA type.
Any suggestions would be much appreciated.
I am sure inevitably someone is going to come on here and say that further smoothing of an MA will lessen false signals but delay entry, and I don't disagree.
BUT due to the standard way of coding a color alternating signal line being an either or approach, minuet changes in the direction are approached as veritable True or False in nature. All of this ultimately allowing for what I personally refer to as micro chop or false signals.
I have had some success in limiting the issue by replacing the standard price input with (High + Low)/2 as opposed to Close, as well as changing the number of look back bars from 1 to 2.
Code:
{ Color criteria }
if (Value1 > Value1[2]) then
SetPlotColor[colourDeltaBar](1, upColour)
else if (Value1 < Value1[2]) then
SetPlotColor[colourDeltaBar](1, downColour);I have contemplated using a percentage of variance or some form of a slope calculation to allow for a margin of error, but I just can't seem to wrap my head around which would be more effective and adaptive to various circumstances.
BTW - In the above image I am using a Hull MA, and I am aware there are various different options for a MA, yet they almost all seem to suffer the same issues even in situations using a 50 bar look back. Which leads me to believe that the issue is more related to the finickiness of the color changing logic then the MA type.
Any suggestions would be much appreciated.
