Article Trading Without Noise

T2W Bot

Staff member
1,454 54
Noise removal is one of the most important aspects of active trading. By employing noise-removal techniques, traders can avoid false signals and get a clearer picture of an overall trend. Here we take a look at different techniques for removing market noise and show you how they can be implemented to help you profit.
What Is Market Noise? Market noise is simply all of the price data that distorts the picture of the underlying trend. This includes mostly small corrections and intraday volatility. To fully understand this concept, let’s take a look at two charts – one with noise and one with noise removed:
Before noise is removed:
/system/images/4650/original/fig1.jpg?1411550062
Fig1
After noise is removed:
/system/images/4652/original/fig2.jpg?1411550062
Fig2
Notice that in Figure 2, there are no longer any areas in which the trend is not easily seen, whereas in Figure 1, it is often difficult to identify whether the trend is changing on some days. The...
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Taufiq

Newbie
8 0
A good approach to simplify the way of trading

We've been loaded with more and more trading information from time to time. Mostly because we always search for better strategies, indicators, tips & tricks, etc. They sometimes give enlightenment but most of the time overwhelm us which leads to confusion. Getting rid of noise in the chart could improve visualization for some traders but it could also become 'deficiency' for whom trading with candle patterns. This is a good article, now it is up to traders how to implement it to their trading. This knowledge could be a good foundation for simplification in trading.
 

NVP

Legendary member
36,767 1,880
interesting

but surely if you want to make the charts simpler just use a line (close price) representation instead of candlesticks ?.......or better stil thow on a 3-5ma to remove the noise ?

NVP
 

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