The Financial Crisis has already caught up with businesses all over the world.
With a higher volatility in stock movements and a noisier market environment, formal technical indicators such as support and resistance levels are a poor lodestar. Noise moves provide false signals and distort the picture of the overall trend.
Noise removal is an important task in many technical
analysis techniques. With the help of the analytical study,
you can avoid any untimely reactions to frustrated trends
and occasional short-term price changes within a trend. That is why we recommend you to use Tradesicion's unique feature (Noise removal) that will help you to overcome uncertainty and increase your profit.
Let's take a look at two screenshots with a Weighted Moving Average (WMA) plotted on a chart.
On the first screenshot you can find S&P 500 INDEX before noise is removed:
As you can see, it is difficult to identify a trend reversal (WMA intersects the price chart many times).
The Remove Noise functionality enables creating and analyzing
a smoothed curve of a price chart.
Take a look at S&P 500 INDEX after Noise Removal feature is applied:
A downtrend is easily seen now. There is a clear picture of a series of lower highs and lower lows (WMA does not intersect the price chart).
It is really important to eliminate deviations and outliers to be able to see real trends only.
The Remove Noise capability allows evaluating the market’s current state and, consequently, making more effective trading decisions.