Fuzzy Logic for Indicators, part 2

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Ok, in the beginning we have to determine our goals and instruments. We would draw our membership functions as lines in a subchart area. Our arithmetic average would be drawn as histogram and would be colored depending to absolute value of resulting function, from red to green. Also it’s good idea to draw our source …

How many... Good shots? Close shots? Accurate shots? True shots?

Fuzzy Logic for Indicators, part 1

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Since Charles Babbage’s invention of the first computer we know our electronic friends use simple binary logic based on “true/false” system. It’s quite enough for mathematical calculations and most financial indicators, but when we try to construct a complex indicator or a robot based on our human experience we may encounter a problem. How to …

Moving Averages Envelope

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Moving Average Envelopes are percentage-based envelopes set above and below a moving average. The moving average, which forms the base for this indicator, can be a simple or exponential moving average. Each envelope is then set the same percentage above or below the moving average. This creates parallel bands that follow price action. With a …