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The High Pass - Low Pass Roofing Filter is a filter indicator that allows to determine the current market trend and entry points into trades. The indicator is a solid line under the price chart.
The line has two colors, thanks to which the trade will be determined, and the position of the line will affect the current trend. Despite the effectiveness of the indicator, it is rarely used alone, because it can also detect false signals. Therefore, it is recommended to use it only as an additional tool on any timeframe, with any currency pairs.
Input parameters
Since The High Pass-Low Pass Roofing Filter is more of a tool than a full-fledged indicator, it only needs two parameters to function.
- -HPLenght - pass length for long positions. The default value is 48.
- -SSFLenght - pass length for short positions. The default value is 10.
Further, in the Parameters section, it can be changed the application of the calculation to the opening, closing, minimum or maximum price. In the Scale section, it can be changed the scale of maximum or minimum prices. And, accordingly, in the Colors section, the color scheme and line width.
Trading with the indicator
Making any trades using The High Pass-Low Pass Roofing Filter indicator is very simple, and it can gotten good results at the same time. The main thing is to follow the location and colors of the line.
Conditions for Buy trades
-The current market trend is upward. That is, the indicator line is located above level 0.
-The indicator line has a growth value.
That is, it took only two simple conditions to make a trade. The same thing happens with closing a trade:
- - The direction of the trend has changed on the market. The trend has become downward. The indicator line falls below level 0.
- -The line changes color and acquires the value of falling.
Conditions for Sell trades
- -The current market trend is downward. That is, the indicator line is below level 0.
- -The indicator line has a falling value.
Closing a trade:
- - The direction of the trend has changed on the market. The trend has become upward. The indicator line is above level 0.
- -The line changes color and acquires a growth value.
However, do not forget that it is better to use the indicator as an additional one in order to avoid false signals and divergence. Otherwise, it can not expected profit from the trade.
Conclusion
It is highly recommended to use The High Pass-Low Pass Roofing Filter indicator as an additional filter. Despite the lack of functionality, the indicator does an excellent job with its main tasks. Therefore, it is often used in trend trading strategies.
