We recommend FTLM-STLM − a unique oscillator without delay

Calculation procedure

The FTLM-STLM oscillator does not work with real prices, but is calculated on the trend indicators data of the system, that is, it uses prices smoothed as a result of frequency filtering. So first − a little background information (Spectral Analyzer).

All AT&CF indicators

So, to calculate FTLM-STLM, we need:

• RFTL («fast») and RSTL («slow») reference trend lines;
• analogues of traditional FATL moving averages − «fast» (based on a low-frequency digital filter) and SATL − «slow» (based on a digital filter of the second order).

We remind: adaptive lines FATL and SATL do not have any phase lag about the current prices. Methods for interpreting the results are similar to the standard Forex indicators.

What result do we have?

The proposed indicator combines the FTLM (Fast Trend Line Momentum) line for FATL and STLM (Slow Trend Line Momentum) for SATL and shows the change rate in adaptive averages. Values are calculated as the difference of the corresponding digital filters for each bar:

FTLM(bar) = FATL(bar) − RFTL(bar)

STLM(bar) = SATL(bar) − RSTL(bar)

Trade signals of the indicator

The STLM line is the leading indicator (see VertexFX Client Side Indicator FTLM-S):

• the moment of the downward trend reversal – the point at which the STLM sign changes from negative to positive;
• the point of uptrend reversal – the moment at which the STLM changes its sign from positive to negative;
• positive STLM − bullish trend, negative – descending;
• the local extremum (max/min) on the STLM line always precedes a similar extremum on the SATL line;
• the appearance of an extremum on the STLM line is a necessary but insufficient condition for reaching the top or the bottom by the SATL line.

Classical signals of FTLM-STLM

Interpretation of the STLM+SATL schemes:

• STLM and SATL lines grow at the same time − upward trend is increasing;
• horizontal and positive STLM line with growing SATL − stable bullish trend, the higher is the absolute STLM value, the greater is potential for growth;
• STLM and SATL lines simultaneously decrease − the bearish trend is increasing;
• horizontal and negative STLM line with a growing SATL line − stable downward trend, the higher is the absolute STLM value, the stronger is potential for fall;
• if both FTLM-STLM lines go simultaneously in one direction, we do not open a deal against them.

When you turn the fast FATL and FTLM indicators from the extreme values down (up), you can add volume to the open position.

FTLM-STLM: scheme of trading signals

Several practical remarks

The use of spectral analysis is a fundamentally new approach to market research, such systems optimally adapt to any trading asset, do not lag, do not depend on the broker and trading conditions.

Serious analysis on periods at a scale of 1 year is performed precisely by such methods, but the value of such signals is highly doubtful for small capitals and ordinary traders.

It is hardly possible to consider the AT&CF system as professional software that is really used by large players. What this means is that the considered indicator has practical meaning only as a basic oscillator of the AT&CF system, all its signals depend on the other elements.

In addition, at least a medium-term forecast is important for market makers, so FTLM-STLM signals most often look illogical even for intraday trading.

All information about this system is contained only in the author's articles and a small amount of discussion in the network, full-scale tests were conducted about 8-10 years ago and in most cases author's recommendations are no longer relevant on the current market. Attempts to develop AT&CF as a commercial product were also unsuccessful.