EMA NoHesi - cutting noise in EMA and any other data seriesNoise is common issue in variety of indicators. NoHesi is my take on reducing this noise.
Moving Averages are great indicators to show and maintain the trend. But sometimes - especially in pullback areas, smooth reversal zones or flat markets - MAs suggest trend changes, while it would be best for them to stay quiet :)
NoHesi function smoothens this noise, without adding unnecessary delay. NoHesi will make MA stay in the same direction as long as the move is not significant. If significant - MAs will report trend-change instantly.
Check the chart for illustration - NoHesi EMA keeps showing the same direction, despite its numerous attempts to change it (marked blue).
NoHesi can be applied to any data series: MAs, RSI , ADX , etc. EMA seemed like the most obvious example, so I used it for this presentation.
Hope it helps in your research!
P.S. When applying this to EMAs in other markets/timeframes, you will need to adjust "hesitation" parameter.
Noise
Signal to Noise Ratio [SNR]Intro
This script measures the Signal to Noise ratio of a security and plots it in deciBels scale!
Usage
Ideally, you would want the ratio to be above 10 dB, meaning the Signal strength is 10x the noise strength.
As a baseline, you should not rely on indicators that use any kind of moving average if the SNR is below 6 dB - meaning Signal strength is only 4x noise strength.
I've written the SNR as a functional block so you may simply copy and paste, then call getSNR() to get the ratio in dB.
Principle
I consider a bar's High and Low to be the range of that period and (High + Low)/2 to be the "real" value of the signal.
This script compares a bars range (noise) to the perceived signal using a Hilbert Transform.
Cheers,
DasanC
[RESEARCH] Quasi White NoiseQuasi White Noise script.
An experimental approach to implement a white noise using Pine Script. Uses Connors RSI under the hood.
en.wikipedia.org
