Do anybody prepares time series by the way I described below? If yes, what kind of software do you use to determine the parts where the process is close to quasi-stationary?

The Price graph is time series from mathematic perspective. While analyzing the time series it is possible to determine the parts where the process is close to quasi-stationary one and it means that it is possible to apply the analysis methods which are also applicable to quasi-stationary processes and to make a prognosis of the time series behavior in the future. Lets determine the sample of time series which can be considered as quasi-stationary and make a spectral analysis on it.

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can you explain more details ?

Hi,

Could anybody tell me where I could find more details on how to analyse the spectrum of a currency ?

I've created the spectrum for EURUSD for example, but where can we get the exact values of the tops? And how do we use them to create a filter?

Thank you very much in advance for your help.

As i remember Simba did it with explanation in this http://www.forex-tsd.com/digital-filters/ section. Don't remember the thread sorry but it is here http://www.forex-tsd.com/digital-filters/
Try to find his posts.

Thank you very much newdigital. I think I've found the thread from Simba. That's SimbaConMan :-)

Is there a way to optimize the parameters to create the filters? What is the computation we have to do? After we have generated the spectrum and we know the significant cycles, how does it helps us to choose the parameters for the indocator?

I think it is for Generator of Digital Filter's software to create indicators for MT4.
Software was posted here Generator of filter's indicator for MT4
Don't use it for the long time but still have installed on my computer:

digitalfilterssoftware.jpg

Post the parameters you have found and a clear picture of the digital filter generator spectrum analizer,and I will explain the basics of it to you
Simba

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Hi Simba,

Thank you very much for the help!!!

What I did only is take the EURUSD 4h data and generate the spectrum using DFM.
I get the following peaks: 12, 21, 30, 39 and 72

First, I don't know which peaks are significant or not? How do we know it?

Then using those informations, I should be able to build a digital indicator. If for example I want to create the SATL indicator, how should I proceed? How do we set the parameters P1, D1, A1, Db and so on? I guess we have to use the cycles' values to filter one cycle but I don't understand what each parameter is doing.
Also, if I want to create a PCCI filter, should I set the parameters so that the indicator is not crossing the mid-line too often and when it does then it is showing a valid move or reversal?

How do we create and use the filters' sets? What is their interest?

I know that that makes a lot of questions and I'm looking forward to your answer.

Regards,
Daniel

Attached Images

EURUSD_spectrum.JPG (230.7 KB, 968 views)