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Old 04-17-2009, 06:27 PM
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Walander Walander is offline
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Before venturing into that direction, you would need to understand what exactly digital filters are.

In an electrical engineering standpoint, digital filters were created in a sense to filter out noise. Noise is more or less defined by digital filters by the extent of how far they would go by a generated mean value- what some might think would be a "general trend." These filters were build to find unknown values of frequencies.

There are two standpoints in using digital filters to trade. One is to use a digital filter to find the "unknown known" cycle frequency, that would, in a sense, represent the natural "flow/Cycle" of the currency. Hence finding multiple frequencies and coinciding troughs and peaks can hopefully lend itself to a high probability trade.

The other standpoint is to use a digital filter as some way to find the overall direction of the trend, sort of like a extremely fancy version of a move average. There are obviously many states of mind that will say that digital filters work or they do not- but trading in itself is an art, and you'll need to learn the ins and outs before making a decision if this type of trading is for you.
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