Clutter Fitler [Loxx] is a simple indicator to demonstrate a clutter filter. The purpose of this technique is to filter useless noise.
What is a Clutter Filter? For our purposes here, this is a filter that compares the slope of the trading filter output to a threshold to determine whether to shift trends. If the slope is up but the slope doesn't exceed the threshold, then the color is gray and this indicates a chop zone. If the slope is down but the slope doesn't exceed the threshold, then the color is gray and this indicates a chop zone. Alternatively if either up or down slope exceeds the threshold then the trend turns green for up and red for down. Fro demonstration purposes, an EMA is used as the moving average. This filtering technique will be used for future indicators.
Hi there, thank you for sharing this script! I think this is one of your most under-rated simple scripts that I have played with for a while, and I like that it is able to use different sources from other indicators! Cheers, and thank you :)