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2004issue C091-5

Decompose high, low, and close into separate forecast streams

A Relative Strength Index can be rebuilt on the period high or low instead of the close. A Trend filter and a Stop-loss order are stacked with that model only when the isolated streams agree with the whole-price reading.

  • A Relative Strength Index can be rebuilt on the period low or high instead of the close so each price stream produces its own support or resistance forecast.
  • When isolated high, low, and close analyses agree with the whole-price reading, the combined forecast is treated as a stronger candidate than any single stream.
  • Reverse-engineering the low-based Relative Strength Index produces explicit next-period levels that can be used as a Trend filter for the following bar.
  • Knowing how far a spike can travel is used to place a Stop-loss order before the trade, while longer-horizon decomposition only qualifies or rejects a shorter-horizon signal.
Entries in this reading3 entries
Current trackTrend filter137 readingsStop-loss order144 readingsRelative Strength Index186 readings

Read each price stream on its own

A Relative Strength Index can be rebuilt on the period low or high instead of the close. Each price stream then produces its own support or resistance forecast.

Isolated high, low, and close analyses are compared with the whole-price reading. The method does not always produce a clear reading.

Derive the next-bar trend filter

Reverse-engineering the low-based Relative Strength Index produces explicit next-period levels that can be used as a Trend filter for the following bar.

Longer-horizon decomposition is intended to qualify or reject a shorter-horizon trading signal rather than to stand as a standalone entry rule.

Set the stop from the spike

Knowing how far a spike can travel is used to place a Stop-loss order before the trade, not only to guess the next close.

CIEN weekly supports stacked from each price stream

A trader should see the low, close, and high streams agree on a 37–43 buying pocket for the week after 31 March 2000: reverse-engineered 14-period RSI floors sit next to the three classic weekly supports. Every bar is a level Siligardos states in the CIEN example, not a curve traced off the figure.
A trader should see the low, close, and high streams agree on a 37–43 buying pocket for the week after 31 March 2000: reverse-engineered 14-period RSI floors sit next to the three classic weekly supports. Every bar is a level Siligardos states in the CIEN example, not a curve traced off the figure.CIEN · weekly · 1998-07-01T00:00:00.000Z to 2000-03-31T00:00:00.000Z

RSI lookback is 14 on weekly bars. The author limits the map to the week of 31 March–7 April 2000.

Editorial reading of the stack

Editorial interpretation by TradersWeek: the archive workflow is read here as a stacking rule. A Relative Strength Index, a Trend filter, and a Stop-loss order are combined only when the high, low, and close streams agree with the whole-price reading. Disagreement is treated as unusable information rather than as a reason to blend the streams.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
15 of 33 in the Trend filter track
20051-1 pp.Next on Trend filterThree-state moving-average breakout bar coloringBuild the moving-average from a chosen length, offset, price source, and averaging type, then classify every bar against that trend-filter.
All readings on this track · 33 readings
  1. 1988Opening-range brackets, a two-bar trend filter, and bounded stops
  2. 1990Bezier-curve price trend filter
  3. 1992Constructing a damping-index trend filter
  4. 1992Building a random walk index trend filter
  5. 1992Phase diagrams for moving-average trend filters
  6. 1993Volume-weighted change smoothing and trend ranking
  7. 1993Concurrent highest-low filter with a largest-low-fall trigger
  8. 1994Unit-invariant trend filters and the c-test
  9. 1995Constructing cup and cap entries with a three-bar net line
  10. 1997Why a daily timing evaluation depends on interval, lookbacks, and the fitting objective
  11. 2001A volume budget clock for trend-segment construction
  12. 2001Keep three jobs separate when you test a composite score
  13. 2002Evaluating the weekly four-percent close filter as a market-state procedure
  14. 2003Constructing a confirmed zigzag trend filter
  15. 2004Decompose high, low, and close into separate forecast streams
  16. 2005Three-state moving-average breakout bar coloring
  17. 2005Constructing a volume and move-adjusted trend filter
  18. 2005A fifty-day average breakout as a trend permission filter
  19. 2005Current-bar inclusion can mute a stochastic channel break
  20. 2006A stochastic oscillator gated by a long-term exponential average
  21. 2010A construction test for a modified volume-price trend filter
  22. 2011Constructing a Spearman rank trend filter
  23. 2013Constructing a repeated-median slope as a resistant trend filter
  24. 2014Combining a relative-strength index and trend filters for oversold setups
  25. 2014Price-rooted lookbacks for a relative strength index, a moving average, and a trend filter
  26. 2015Evaluating next-session intermarket range forecasts
  27. 2018Read the intermarket weight matrix first, then the predicted moving-average filter
  28. 2018Constructing the stiffness trend filter from moving-average holds
  29. 2018The averaging kernel and the lagged trend gate are separate specifications
  30. 2019A trend filter is not ready to compare until portfolio constraints are written down
  31. 2019Lookback, threshold, and position-capacity for a stiffness trend-filter
  32. 2020Combining a trend filter with a moving average and a stochastic oscillator
  33. 2020Constructing a relative-strength oscillator with a rank-agreement trend filter
By fieldIndicators and filters682 readingsBy year2004107 readings
All 137 readings tagged Trend filter
Also on Trend filter5 readings
1988Opening-range brackets, a two-bar trend filter, and bounded stops1995Constructing cup and cap entries with a three-bar net line2015Evaluating next-session intermarket range forecasts1997Why a daily timing evaluation depends on interval, lookbacks, and the fitting objective1997Rational group structure with a trend screen, RSI, and bands