Cycle-Adaptive Indicators
Cycle-Adaptive indicators continually and, if necessary, dynamically change the number of bars used to calculate the plot, so that the plot uses the number of bars in the current cycle as a basis. The dominant period is calculated afresh on every bar, so every bar has the indicator adjusted to the then current wave. This means that the plot will adapt itself to the cycles that the market itself determines: the indicator adapts itself to the prevalent market, on each bar.
Thus, at all times, the indicator plot is optimized for the way that the market is oriented on that bar. The calculaton period is automatically, and continuously adjusted for you. There is no need to keep adjusting the period, so as to try to find an optimum period.
This is a huge advantage, because it removes the uncertainty involved when a trader has to specify the calculation period. Is it too fast, and, therefore, too noisy, or is it too slow, and, therfore, introducing too much lag into its signals?
However, should the trader elect, the trader can still use a fixed period for calculation of the plot, if so desired.
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