# FATL, SATL, RFTL, & RSTL Digital Signal Filter Smoother [Loxx]

FATL, SATL, RFTL, & RSTL Digital Signal Filter (DSP) Smoother is is a baseline indicator with DSP processed source inputs

What are digital indicators: distinctions from standard tools, types of filters.
To date, dozens of technical analysis indicators have been developed: trend instruments, oscillators, etc. Most of them use the method of averaging historical data, which is considered crude. But there is another group of tools - digital indicators developed on the basis of mathematical methods of spectral analysis. Their formula allows the trader to filter price noise accurately and exclude occasional surges, making the forecast more effective in comparison with conventional indicators. In this review, you will learn about their distinctions, advantages, types of digital indicators and examples of strategies based on them.

Two non-standard strategies based on digital indicators
Basic technical analysis indicators built into most platforms are based on mathematical formulas. These formulas are a reflection of market behavior in past periods. In other words, these indicators are built based on patterns that were discovered as a result of statistical analysis, which allows one to predict further trend movement to some extent. But there is also a group of indicators called digital indicators. They are developed using mathematical analysis and are an algorithmic spectral system called ATCF (Adaptive Trend & Cycles Following). In this article, I will tell you more about the components of this system, describe the differences between digital and regular indicators, and give examples of 2 strategies with indicator templates.

ATCF - Market Spectrum Analysis Method
There is a theory according to which the market is chaotic and unpredictable, i.e. it cannot be accurately analyzed. After all, no one can tell how traders will react to certain news, or whether some large investor will want to play against the market like George Soros did with the Bank of England. But there is another theory: many general market trends are logical, and have a rationale, causes and effects. The economy is undulating, which means it can be described by mathematical methods.

Digital indicators are defined as a group of algorithms for assessing the market situation, which are based exclusively on mathematical methods. They differ from standard indicators by the form of analysis display. They display certain values: price, smoothed price, volumes. Many standard indicators are built on the basis of filtering the minute significant price fluctuations with the help of moving averages and their variations. But we can hardly call the MA a good filter, because digital indicators that use spectral filters make it possible to do a more accurate calculation.

Simply put, digital indicators are technical analysis tools in which spectral filters are used to filter out price noise instead of moving averages.

The display of traditional indicators is lines, areas, and channels. Digital indicators can be displayed both in the form of lines and in digital form (a set of numbers in columns, any data in a text field, etc.). The digital display of the data is more like an additional source of statistics; for trading, a standard visual linear chart view is used.

All digital models belong to the category of spectral analysis of the market situation. In conventional technical indicators, price indications are averaged over a fixed period of time, which gives a rather rough result. The use of spectral analysis allows us to increase trading efficiency due to the fact that digital indicators use a statistical data set of past periods, which is converted into a “frequency” of the market (period of fluctuations).

Fourier theory provides the following spectral ranging of the trend duration:

• low frequency range (0-4) - a reflection of a long trend of 2 months or more
• medium frequency range (5-40) - the trend lasts 10-60 days, thus it is referred to as a correction
• high frequency range (41-130) - price noise that lasts for several days

The ATCF algorithm is built on the basis of spectral analysis and includes a set of indicators created using digital filters. Its consists of indicators and filters:

• FATL: Built on the basis of a low-frequency digital trend filter
• SATL: Built on the basis of a low-frequency digital trend filter of a different order
• RFTL: High frequency trend line
• RSTL: Low frequency trend line

Inclucded:
• 4 DSP filters
• Bar coloring
• Keltner channels with variety ranges and smoothing functions
• Bollinger bands
• 40 Smoothing filters
• 33 souce types
• Variable channels

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