Theory:
As traders, we often need to normalize values within specific limits to effectively utilize them in an oscillator mode. This approach helps us identify clear trends in the market. One effective method for achieving this normalization is through the zero mean technique. This version of the nonlinear Kalman filter employs zero mean normalization to convert the filter into a functioning oscillator.
Usage:
You can interpret the color changes as trading signals. There are two modes for color change that you can utilize:
- Color change at zero cross
- Color change upon slope change
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