Leading Indicator
$0.00
Leading Indicator is an effective VertexFX indicator that wipes out lag. It is valuable to focus solid trends quickly. It has a lag of only half a bar.
This indicator contains two segments, leading indicator (Blue line) and the shorter EMA of leading indicator (Red line).Leading Indicator is created by adding the difference between price and an Exponential Moving Average (EMA) to price itself; however the leading indicator has a noise gain. Smoothing the leading indicator with another Exponential Moving Average can mitigate noise gain.
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Leading Indicator is an effective VertexFX indicator that wipes out lag. It is valuable to focus solid trends quickly. It has a lag of only half a bar.
This indicator contains two segments, leading indicator (Blue line) and the shorter EMA of leading indicator (Red line).Leading Indicator is created by adding the difference between price and an Exponential Moving Average (EMA) to price itself; however the leading indicator has a noise gain. Smoothing the leading indicator with another Exponential Moving Average can mitigate noise gain.
In first phase, the lead is calculated by smoothing price with ALPHA1 based on the last two bars. Then net lead is calculated by smoothing this calculated lead by smoothing with ALPHA2 over recent two bars. This is the leading indicator (Blue) line. The Red line is the 2 period EMA of the leading indicator (Blue line).
Traders can place Buy positions when leading indicator (Blue) crosses above EMA (Red).
Traders can place Sell positionswhen leading indicator (Blue) crosses below the EMA (Red).
Usage
- Download the attachment.
- Copy it to your company VertexFX Local VTL Files folder i.e. C:Program FilesCompany Namevtl10Local VTL Script
- Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.
Additional information
| Plugin-Type | Client VTL – Custom Indicator |
|---|---|
| Compatibility |