Three Pole Super Smoother

Three Pole Super Smoother is a powerful VertexFX indicator for trend based trading and detecting market tops and bottoms. It aims to reduce the lag and whipsaws and thus provide faster entries and exits of trades. The objective of this indicator is to remove noise (whipsaws) and determine the primary trend, and hence we use the concepts of Digital Signal Processing (DSP).

In this indicator, we use fourth-degree coefficient unlike the Two Pole Super Smoother, where we use third degrees of coefficient. The order of Super Smoother filters can be increased indefinitely to increase the sharpness of the filter rejection, just as with Butterworth filters. But beyond the 3rd order, we do not get much advantage.

Verdo Three Pole Super Smoother is calculated using Median price. We calculate the cyclical component of the price and then smooth it to the 3rd degree. Finally, we apply a weighted average to this result over the recent 4 to achieve the indicator value.

BUY – Place Buy trade when price closes above indicator (Blue) line. Placestop loss below the indicator line, or at the nearest swing low.

SELL – Place Sell trade when price closes below indicator (Blue) line. Place stoploss above the indicator line, or at the nearest swing high.

Usage

• Download the attachment.
• Copy it to your company VertexFX  Local VTL Files folder i.e. C:Program FilesCompany Namevtl10Local VTL Scripts
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.