Digital Signal Processing – Defining & Using the Difference Equation

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Viewing 15 posts - 16 through 30 (of 30 total)
  • #241645

    I inputted the code but in excel

    y = a0 * close + a1 * close[1] + b1 * close[2]  //changed

     

    and got the follwing

    #241647
    JS

    Hi,

    I think it was about determining the variables, it is theoretically interesting but I didn’t use it anymore after this…

    1 user thanked author for this post.
    #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.
    #241649
    JS

    Nice indicator, heavy script… Completely agree with what it says…

    #241651

    I 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??

    #241661
    #241672

    Hey, thanks for you reply. I’ve enjoyed many of your post. Are you saying you don’t use difference equations at all in your trading?

    #241673

    Nice indicator, how can FIR be used for volatility ?

    #241674
    JS

    Hi,
    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…

    #241690

    I’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.
    #241696
    JS

    Hi 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:

    Afbeelding met Lettertype, wit, diagram,  Automatisch gegenereerde beschrijving

    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.
    #241697
    JS

    My wish for 2025 is to become a better loser… 😉

    1 user thanked author for this post.
    #241700

    I wish you to become a better winner too 😉 (would be better i guess)

    1 user thanked author for this post.
    avatar JS
    #241708
    Hi 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:

    Afbeelding met Lettertype, wit, diagram,  Automatisch gegenereerde beschrijving

    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.
    avatar JS
    #241735

    My wish for 2025 is to become a better loser… 😉

    …that is totally opposite of what majority is thinking is needed for their success in trading, and so – it is the absolute “correct” wish 😀

    1 user thanked author for this post.
    avatar JS
Viewing 15 posts - 16 through 30 (of 30 total)

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