Origin of the Correcting Algorithm:
Dr. Alexander Uhl developed a unique method aimed at filtering moving averages and identifying trading signals. The original approach relied on standard deviation to refine these average values.
Introducing the Indicator:
This indicator leverages a modified 'correcting' method. Instead of standard deviation, it utilizes EMA deviation (you can check it out here), leading to two significant outcomes:
- The EMA deviation calculation is considerably faster than standard deviation, resulting in more efficient code.
- Interestingly, this method generates fewer signals compared to standard deviation. This is because EMA deviation is more responsive to price changes, making the corrections less prone to whipsaws. However, it's always wise to conduct your own experiments before deploying it in live trading.
How to Use It:
Keep an eye on the color changes as they serve as your trading signals.
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