As traders, we often seek clarity amid the chaos of the markets. That's where the Signal to Noise Filter comes into play. This handy indicator helps us pinpoint market phases that exhibit minimal activity—essentially, the noise that can cloud our trading decisions.
Why is this important? Well, trading in these low-amplitude phases is often a fruitless endeavor, even for those of us who favor range-bound strategies. When you see the green line dip below the gray line, it’s a clear signal to step back and avoid making trades.
In such situations, it’s wise to turn to other indicators that can better guide your trading decisions. Remember, patience is key in trading, and sometimes the best move is to sit tight.
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