It's reasonably straightforward to trade a chart like this:
But in reality, charts sort of look like this:
I spent a lot of time trying to figure out how I could eliminate the noise. Options include:
1. Moving averages
2. Tick/renko/range
3. Volume/# of trades bars
4. Line-on-close
etc etc
None of these are truly satisfactory. Moving averages are too slow, 2, 3 need calibration and 4 is pretty much the second chart above.
I ultimately settled on a variant of number of price changes per bar and calibrate it with some fancy python code (not fancy) based on the structure I want to see. I'm getting increasingly frustrated with this because it isn't as clean as (say) the first chart and it still requires me to use whatever little brain I have left to interpret.
How do you eliminate noise in the series?
But in reality, charts sort of look like this:
I spent a lot of time trying to figure out how I could eliminate the noise. Options include:
1. Moving averages
2. Tick/renko/range
3. Volume/# of trades bars
4. Line-on-close
etc etc
None of these are truly satisfactory. Moving averages are too slow, 2, 3 need calibration and 4 is pretty much the second chart above.
I ultimately settled on a variant of number of price changes per bar and calibrate it with some fancy python code (not fancy) based on the structure I want to see. I'm getting increasingly frustrated with this because it isn't as clean as (say) the first chart and it still requires me to use whatever little brain I have left to interpret.
How do you eliminate noise in the series?
