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Here's a breakdown of the indicators currently available in Spectral Alpha, categorized by their type and functionality.
Smoothing
These indicators help you smooth out price fluctuations and identify underlying trends.
Low Pass Filter (LP)
The Low Pass Filter is like a noise-canceling headphone for your charts. It filters out high-frequency price fluctuations (the "noise") while allowing the dominant trend (the "signal") to pass through. This makes it easier to identify the overall direction of the market and potential turning points.
Exponential Moving Average (EMA)
The Exponential Moving Average gives more weight to recent prices, making it more responsive to current market movements than the Simple Moving Average. This makes it useful for identifying shorter-term trends and potential trend reversals.
Simple Moving Average (SMA)
The Simple Moving Average calculates the average price over a specified period. It's a classic indicator used to identify the overall trend and potential reversals.
Oscillator
Oscillators help you identify overbought/oversold conditions, momentum shifts, and potential turning points.
Band Pass Filter (BP)
The Band Pass Filter isolates a specific frequency band in the price data. This allows you to focus on particular cycles or patterns in the market, such as short-term swings or longer-term trends.
High Pass Filter (HP)
The High Pass Filter removes slow-moving trends from the price data, highlighting short-term fluctuations and potential turning points. It's useful for identifying momentum shifts and potential trend reversals.
Regime
Regime indicators help you identify different market states, such as trending vs. sideways markets.
Fractal Dimension Index (FDI)
The Fractal Dimension Index measures the "roughness" of the price action. A higher FDI indicates a more volatile and unpredictable market, while a lower FDI suggests a smoother and more predictable trend.
Mean Reversion Index (MRI)
The Mean Reversion Index measures the likelihood that the market will revert to its median value. A falling MRI suggests that a trend may be forming, as prices are moving away from the median.
Transforms
Transforms modify the output of other indicators to improve their signals.
Cubed
The Cubed transform raises all values in the series to the power of three. This minimizes values less than 1 and accentuates values greater than 1, effectively highlighting larger movements and reducing the impact of small fluctuations.
Automatic Gain Control (AGC)
The Automatic Gain Control dynamically adjusts the amplitude of the indicator output to keep it within a specific range. This is useful for standardizing the output of indicators that produce values with varying scales, making it easier to compare them across different markets or timeframes.
Plateau Filter
The Plateau Filter outputs signals whenever the input series has a peak or valley, but it includes a filter to prevent signal generation when the series is plateauing (moving sideways). This helps reduce the number of false signals generated during periods of low volatility or consolidation.