Let's talk about eliminating noise in the charts

Discussion in 'Technical Analysis' started by nooby_mcnoob, Nov 29, 2021.

Is this guy stupid

Poll closed Nov 30, 2021.
  1. No

    80.0%
  2. Absolutely not

    60.0%
Multiple votes are allowed.
  1. It's reasonably straightforward to trade a chart like this:

    want.png

    But in reality, charts sort of look like this:

    get.png

    I spent a lot of time trying to figure out how I could eliminate the noise. Options include:

    1. Moving averages
    2. Tick/renko/range
    3. Volume/# of trades bars
    4. Line-on-close

    etc etc

    None of these are truly satisfactory. Moving averages are too slow, 2, 3 need calibration and 4 is pretty much the second chart above.

    I ultimately settled on a variant of number of price changes per bar and calibrate it with some fancy python code (not fancy) based on the structure I want to see. I'm getting increasingly frustrated with this because it isn't as clean as (say) the first chart and it still requires me to use whatever little brain I have left to interpret.

    How do you eliminate noise in the series?
     
  2. easymon1

    easymon1

    Do you trade by hand or automated?
     
  3. Not yet automated.
     
  4. SunTrader

    SunTrader

    Not the most "elegant" but hopefully gets the point across:-
    ! get.png
     
  5. Does not get the point across....
     
    murray t turtle likes this.
  6. SunTrader

    SunTrader

    I tried.
     
  7. Overnight

    Overnight

    In understand the point you are making here, about smoothing out charts. I can show a possible example of trying to smooth out noise in a moment, but something caught my eye as simply astounding...

    noobytimetravelchart.JPG

    In the blue circle at the arrow, you are effectively showing time-travel to the past. Awesome!
     
    wrbtrader, tomorton and nooby_mcnoob like this.
  8. If at first you don't succeed, try again!
     
  9. Sometimes when NQ goes parabolic I think it might actually loop backwards.
     
  10. easymon1

    easymon1

    do you trade by hand?
     
    #10     Nov 29, 2021