Digital Signal Processing – Defining & Using the Difference Equation
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- This topic has 29 replies, 10 voices, and was last updated 2 months ago by
justisan.
Tagged: Black and Scholes, Difference, Difference Equation, Equation
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12/20/2024 at 9:19 PM #24164512/20/2024 at 10:08 PM #24164712/21/2024 at 1:09 AM #241648
https://fr.tradingview.com/script/H362NdFv-PhiSmoother-Moving-Average-Ribbon-ChartPrime/
DSP FILTRATION PRIMER:
DSP (Digital Signal Processing) filtration plays a critical role with financial indication analysis, involving the application of digital filters to extract actionable insights from data. Its primary trading purpose is to distinguish and isolate relevant signals separate from market noise, allowing traders to enhance focus on underlying trends and patterns. By smoothing out price data, DSP filters aid with trend detection, facilitating the formulation of more effective trading techniques.1 user thanked author for this post.
12/21/2024 at 1:37 AM #24164912/21/2024 at 9:53 AM #241651I inputted the code but in excel y = a0 * close + a1 * close[1] + b1 * close[2] //changed and got the follwing
I don’t understand what is being said above, please could anybody enlighten me?
How does excel give the results shown in the image attached to the above post??
12/21/2024 at 3:45 PM #241661Couldn’t get prior link to work, maybe just a typo, so added again after finding it.
1 user thanked author for this post.
12/21/2024 at 9:38 PM #24167212/21/2024 at 9:41 PM #24167312/21/2024 at 10:46 PM #241674Hi,
A lot of people here are probably using a difference equation in their system…
The mentioned difference equation represents the general form of a (recursive) system between the input and the output. For example, when you use an exponential moving average in a system, you are essentially already applying a specific form of the general difference equation. I also use it in this form within a system…12/22/2024 at 12:59 PM #241690I’m confused and I end up scrolling up and down trying to see what post is getting anwered / commented on.
If we are not ‘quoting’ a few words then it be good to copy and paste the name of whoever we are replying to?
Just trying to bring order to chaos (not really chaos 😉 ) as this Topic could be benefical to present and future readers.
Thank You
Have a Good Christmas and even more so … a Prosperous New Year!1 user thanked author for this post.
12/22/2024 at 2:33 PM #241696Hi GraHal,
That’s correct, a bit unclear. The problem with Safari (or maybe just me) is that “quoting” doesn’t work…
In a nutshell: the difference equation is nothing more than a general formula that expresses the difference between the input (Close) and the output (what you see on your screen) …
For example, when using a simple average as a system, the difference equation looks as follows:Where the average (mu) is essentially the value (y[n]) that you’ll see in the chart…
In a recursive system, you also use previously calculated values of y[n], such as y[n-i], which adds an extra term to the equation:You can also, for instance, include the standard deviation, as I’ve done…
Happy holidays to you as well…1 user thanked author for this post.
12/22/2024 at 2:49 PM #24169712/22/2024 at 5:03 PM #24170012/22/2024 at 7:47 PM #241708Hi GraHal,That’s correct, a bit unclear. The problem with Safari (or maybe just me) is that “quoting” doesn’t work…
In a nutshell: the difference equation is nothing more than a general formula that expresses the difference between the input (Close) and the output (what you see on your screen) …
For example, when using a simple average as a system, the difference equation looks as follows:
Where the average (mu) is essentially the value (y[n]) that you’ll see in the chart…In a recursive system, you also use previously calculated values of y[n], such as y[n-i], which adds an extra term to the equation:
You can also, for instance, include the standard deviation, as I’ve done…Happy holidays to you as well…
Thank you for the explanation, happy holidays
1 user thanked author for this post.
12/23/2024 at 5:36 PM #241735 -
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