One of the variations that is actually improving the indicator is the “smoothed” version. The logic behind the smoothed version is simple:
Instead of using “raw” prices” for calculations, it’s using smoothed/filtered/averaged prices instead.
That usually filters out some false signals and makes it easier to use.
This version can use some of the 4 basic types of averages for smoothing:
Simple moving average (SMA).
Exponential moving average (EMA).
Smoothed moving average (SMMA).
Linear weighted moving average (LWMA).
Additionally you can use a “step” filter (in pips) to filter out value changes that are smaller than the desired threshold (if the step is set to <=0, then that filter is not used).
MetaCOT 2 CFTC ToolBox (Set of Indicators) MT4 -… Contents GENERAL PROVISIONS Brief description Installing the libraries and indicators Several indicators in one window Exporting CFTC reports to CSV…
