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Voss Predictive Filter is a filter indicator that generates a signal about cyclical turning points in the trading market. Although the Voss Predictive Filter is able to provide a signal much earlier than other indicators, it should be taken into account that the indicator filter has a group delay, which can negatively influence the trade.
The indicator consists of two lines that are located in the lower window of the price chart. And the intersection of the lines will be a signal for a specific trade. Trade is made on any timeframe, with any currency pairs.
Input parameters
The Voss Predictive Filter indicator consists of only two parameters. Since the indicator is more of a filter than a full-fledged indicator, its settings correspond to it.
- -Averaging period-calculation period performed using the indicator. The default value is 20.
- -Predict - indicator prediction value. The default value is 3.
In addition to the above parameters, an additional level can be added to the indicator lines to define intersection points through a certain value. It can be also changed the color scheme and width of the indicator lines.
Indicator signals
As a rule, indicators consisting of lines form some kind of signal when they cross. The Voss Predictive Filter indicator is no exception. And, accordingly, the trade will depend on the direction of the lines crossing. But trading without additional indicators or tools is strongly not recommended, because how the filter can give a delay, thereby forming false signals, that is, the trade can go at a loss.
Signal for Buy trades:
- -The main line of the indicator crosses the other from the bottom up. That is, a bullish crossover has formed.
Accordingly, a long position is placed at the point of intersection of the two lines. A stop loss order will be placed at the recent local minimum point.
Signal for Sell trades:
- -The main line of the indicator crosses the other one from top to bottom. That is, a bearish crossover has formed.
Accordingly, a short position is placed at the intersection point of the two lines. A stop loss order will be placed at the recent local maximum point.
Conclusion
The Voss Predictive Filter indicator serves as an excellent assistant in various strategies. It is able to form a signal much earlier than other indicators, however, these signals are not always accurate. And sometimes the accuracy of the signals may depend on the choice of timeframe. redrawing. Of the shortcomings, false signals can be noted, thus should not count on big profits. It is also better to practice on a demo account before trading.
