OPEN-SOURCE SCRIPT
deseasonalized_mod
Description:
As in the decomposition of time series data, the indicator was modified from the deseasonalized process, to avoid overfitting as in the original format, aiming to exclude seasonal component (shorter time-period in consideration), thus leaving trend and irregularity. The indicator is expected to identify short-term trends, based on the given timeframe.
Notes:
Length set to 10-bar as default, while reducing the length to e.g. 8 increase more responsive of the fitted data, however inline to increase a false trend identification (bias-variance trade-off). To be noted, the indicator wasn't a momentum indicator, thus can only expect the trend identifier instead. If the price is above the fitted line (indicator), and experiencing a retracement, regularly expected to be bounced around the fitted line (support), while if breaks to the downside, expected a trend reversal, and become a (resistance).
Feature:
As in the decomposition of time series data, the indicator was modified from the deseasonalized process, to avoid overfitting as in the original format, aiming to exclude seasonal component (shorter time-period in consideration), thus leaving trend and irregularity. The indicator is expected to identify short-term trends, based on the given timeframe.
Notes:
Length set to 10-bar as default, while reducing the length to e.g. 8 increase more responsive of the fitted data, however inline to increase a false trend identification (bias-variance trade-off). To be noted, the indicator wasn't a momentum indicator, thus can only expect the trend identifier instead. If the price is above the fitted line (indicator), and experiencing a retracement, regularly expected to be bounced around the fitted line (support), while if breaks to the downside, expected a trend reversal, and become a (resistance).
Feature:
- Buy/Long overlay signal
- Sell/Short overlay signal
- Alert
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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