FATL - MetaTrader 5 Script | Trading Script Download - MT4/MT5 Resources - MetaTrader 5 Resources

Vladimir Kravchuk, “New adaptive methods for following trends and market cycles”

FATL (Fast Adaptive Trend Line) is calculated using a low frequency digital filter (FLF-1).

The FLF-1 filter is necessary to suppress high-frequency noise and reduce market cycles with very short fluctuation periods (which can also be considered noise). The filter parameters (fc cutoff frequency and A attenuation at the stopband) are calculated using EUR/USD exchange rate spectrum estimates.

The low-frequency FLF-1 and FLF-2 filters provide no less than 40 dB of attenuation in the stopband and absolutely no amplitude and phase distortion in the passband (bandwidth) into discontinuous price sequences. These properties of digital filters provide significantly improved noise rejection (compared to a simple moving average), which in turn can significantly reduce the probability of "false" signals for buys and sells.

There is nothing like FATL among widely known technical tools. It is not a moving "average" but simply an adaptive line estimate of the short-term trend. Unlike a moving "average", FATL does not have any phase lag relative to the current price.

Attachment download

📎 fatl.mq5 (6.17 KB)

📎 fatl_.mq5 (5.42 KB)

Source: MQL5 #403