Theory:
Many of you might recall the Kalman filter from previous discussions in the trading community. Originally introduced a while back, this advanced tool has evolved, and with the capabilities of MetaTrader 5, it can now work with various indicator data. If you're interested, check out the earlier version designed for MT4 here.
Just a quick note: the color coding of this indicator isn’t based on its slope; instead, it’s derived from an internal ‘velocity’ that’s calculated during the indicator’s processing.
Usage:
To get started, simply apply the generalized Kalman filter to your price chart or any other indicator that piques your interest. The filter will provide insights, and you can interpret the color changes as potential trading signals.
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