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Chebyshev

Chebyshev Filter Divergences [ChartPrime]The Chebyshev Filter Divergences Oscillator The Chebyshev Filter indicator is a powerful tool designed to identify potential divergences between price and a filtered version of price based on the Chebyshev filter algorithm. It helps to spot mean reversion points by highlighting areas where price and the filtered price exhibit conflicting signals. Chebyshev Filter Background: The Chebyshev filter, named after the Russian mathematician Pafnuty Chebyshev , was invented in the mid-19th century. It's a type of filter used in signal processing and digital signal processing for smoothing or removing unwanted frequency components from a signal. It provides a sharp cutoff between the passband and stopband of a filter while minimizing ripple in the passband or stopband. Chebyshev filters are widely used in various applications, including audio and image processing, telecommunications, and financial analysis, due to their efficiency and effectiveness in filtering out noise and extracting relevant information from signals. ◆ Indicator Calculation: The indicator first applies a Chebyshev filter to the price data, producing a filtered price series. It then normalizes this filtered price series to a range, where it can be used as oscillator with divergences. ◆ Visualization: The filtered price series is plotted on the chart, highlighting areas where it deviates from its smoothed average. Bullish and bearish divergences are marked on the chart with specific lines and colors, indicating potential shifts in market sentiment. Signs of change in direction are also marked on the chart, providing additional insights into possible mean reversals of price. ◆ User Inputs: Ripple (dB): Specifies the desired ripple factor in decibels for the Chebyshev filter. Normalization Length: Sets the length of the normalization period used in the Chebyshev filter. Pivots to Right and Left: Determines the number of pivot points to the right and left of the current point to consider when detecting divergences. Max and Min of Lookback Range: Specifies the maximum and minimum lookback range for identifying divergences. Show Divergences: Enables or disables the display of bullish and bearish divergences. Visual Settings: Allows customization of colors for visual clarity. In conclusion, the Chebyshev Filter Divergences indicator, with its ability to identify potential mean reversion points through divergences between price and a filtered version of price, offers traders a valuable tool for decision-making in the financial markets. By highlighting areas of divergence, traders can potentially capitalize on market inefficiencies and make more informed trading decisions.
Pine Script® indicator
by ChartPrime
8
Custom Time Frame (CTF)This indicator allows users to create their own arbitrary time frames for chart analysis. It features a moving average, providing an additional layer of analysis, and offers flexibility through various open settings. In terms of user settings and usage, the indicator provides several options. Users can choose their interval style, opting for either tick-based or time-based intervals. This flexibility allows for a more granular approach to data analysis, catering to different trading strategies and preferences. The number of ticks or the amount of time for each candle can be adjusted, enabling traders to set the granularity of the data to their liking. Color settings are also customizable, with options for setting colors for bullish and bearish indicators, adding a visual dimension to the analysis. The average line parameters are an important aspect of this indicator. Users can adjust the length, ripple, type, color, and line width of the average line. The ripple setting, in particular, impacts the smoothness of the filter. With type II setting, the smoothing is increased, making it suitable for traders who prefer a more smoothed out moving average. Conversely, the type I setting decreases the smoothing, which might be preferred by those who want a more responsive indicator. The use of the Chebyshev filter is a significant feature of this indicator. This filter is chosen for its high-performance smoothing capabilities with minimal data requirements. This ensures that the moving average appears quickly and accurately, which is crucial in real-time chart analysis. An important point to note is that when the moving average is enabled, it decreases the maximum number of candles that can be displayed on the chart. However, this is offset by the enhanced analytical precision provided by the moving average. In summary, this indicator is especially beneficial for traders without access to premium accounts. It offers the capability to create low or custom time frame charts. The flexibility in settings, coupled with the inclusion of a Chebyshev filter for the moving average, makes it a versatile and valuable tool for detailed market analysis. It caters to a wide range of trading styles and strategies, making it a useful addition to any trader's toolkit.
Pine Script® indicator
by The_Peaceful_Lizard
6