AFIRMA – indicator for MetaTrader 5

January 12, 2015

362

AFIRMA (Autoregressive Finite Impulse Response MA) based on the digital filter accurately shows the price movement, though with a time lag.

Moving Average based on the smooth function fitting (a polynom or sin/cos like in Fourier transform) has no lag but often shows the price movement not so well.

The proposed moving average smooths out the price movement using the digital filter for all candlesticks, except the latest ones, the number of which is equal to the filter time lag. These candlesticks are smoothed by cubic spline fitting using least square method. The condition of combined moving average and its first derivative continuity is set at two moving averages crossing. As a result, we have the smooth moving average that accurately tracks the prices without a time lag.

Input parameters:

Periods – sets the low frequency filter transmission width equal to 1/(2*Periods);
Taps – number of delay units in the filter (must be an odd number), i.e. the filter must have Taps prices to form the new smoothed МА value;
Window – selects the filter approximation the following way:
- Window=1 – rectangular window;
- Window=2 – Hanning;
- Window=3 – Hamming;
- Window=4 – Blackman;
- Window=5 – Blackman-Harris.

The first part of MA built using the digital filter is displayed by the blue-violet curve. The second part of MA built by cubic spline fitting is displayed by the red curve.

Recommended MT5 Brokers

XM Broker

Free $50 To Start Trading Instantly! (Withdraw-able Profit)
Deposit Bonus up to $5,000
Unlimited Loyalty Program
Award Winning Forex Broker
Additional Exclusive Bonuses Throughout The Year

>> Sign Up for XM Broker Account here <<

FBS Broker

Trade 100 Bonus: Free $100 to kickstart your trading journey!
100% Deposit Bonus: Double your deposit up to $10,000 and trade with enhanced capital.
Leverage up to 1:3000: Maximizing potential profits with one of the highest leverage options available.
‘Best Customer Service Broker Asia’ Award: Recognized excellence in customer support and service.
Seasonal Promotions: Enjoy a variety of exclusive bonuses and promotional offers all year round.