RFTL

RFTL (Reference Fast Trend Line) is a powerful trend-following VertexFX indicator which responds quickly to price fluctuations.

It is a digital filter based indicator, designed from FLF-1 and FLF-2 digital filters from discrete input sequence. In Digital Signal Processing theory, prices are considered to be based of two components – the signal component – which is the main trend, and the noise component – which is the whipsaws and sideways movements.

RFTL indicator attempts to eliminate noise component and refine main trend component. The close of each candle is multiplied by a filter smoothing co-efficient, and the sum of this value is calculated over the recent 44 candles to derive the RFTL indicator value. These smoothing co-efficient are weighted based on digital filter probabilities. In sideways whipsaw markets, the sideways movement cancels each other out, and the resultant value is static. Whereas in trending market, the filters will eliminate the sideways movement, but keep the main trend.

Hence the indicator is moving upwards in uptrend and downwards in downtrends. Prices move upwards from sideways or downwards markets – so when the price closes above the RTFL it implies that the market saturation is over and an uptrend is beginning. Similarly, prices move downwards from sideways or upwards markets – so when the price closes below the RFTL it implies that the market saturation is over and a downtrend is beginning. The RTFL indicator requires at least 44 candles.

BUY – Place Buy position when the candle closes above RFTL indicator. Place Stoploss (SL) at support below the RFTL indicator. Do not place Buy trade if candle gaps above RFTL.

SELL – Place Sell position when the candle closes below the RFTL indicator. Place Stoploss (SL) at resistance above the RFTL indicator. Do not place Sell trade if candle gaps below RFTL.

Usage

• Download the attachment from vStore or directly from the vStore tab in your terminal by performing a right click on it and selecting Download & Install
• Copy it to your company VertexFX Local VTL Files folder i.e. C:Program FilesCompany Namevtl10Local VTL Files
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.