![\"snag-0773.jpg\"](\"http:\/\/www.amibroker.org\/userkb\/wp-content\/uploads\/2007\/05\/snag-0773.jpg\")
<\/a><\/p>\nAt the first White bar the price gaps up and the Traditional T3 (Blue) falls behind immediately and actually moves opposite to the price. The Resettable T3 (Red) reset itself when it detected the gap and almost immediately is able to track the price bars in the right direction.<\/p>\n
There are many ways to reset an indicator: you can do it abruptly by setting the period to 1; you can maintain a minimum smoothing by resetting it to 2 or 3; or you can gradually adjust period and\/or T3-Sensitivity according to some formula. The example code below uses the T3 formula that can be found in the AmiBroker library.<\/p>\n
In the example below, I use the start (1st bar) of the trading day to reset the T3. However, there are many other situations where you might want to reset an indicator. For example, when using trailing stops or SAR type exits, sometimes you might want to reset an indicator when you get a Buy or Sell signal. You can assign your own reset reference by averaging all bar prices, e.g., (O+H+L+C)\/4. However, you should stay away from averaged values as they would reintroduce lag. I prefer the use of (O+C)\/2, but you should try any number of other ideas that fit your liking.<\/p>\n
Edited by Al Venosa<\/p>\n","protected":false},"excerpt":{"rendered":" Smoothing Indicators like MA(), EMA(), T3(), DEMA(), etc. are intended to give you an average indication of price movements. They do this by filtering out high frequency changes in a particular price variable. The problem is that such indicators introduce time lag into the system. Indicator lag is most readily apparent when the overall price […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[64],"tags":[],"_links":{"self":[{"href":"http:\/\/www.amibroker.org\/editable_userkb\/wp-json\/wp\/v2\/posts\/53"}],"collection":[{"href":"http:\/\/www.amibroker.org\/editable_userkb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.amibroker.org\/editable_userkb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.amibroker.org\/editable_userkb\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/www.amibroker.org\/editable_userkb\/wp-json\/wp\/v2\/comments?post=53"}],"version-history":[{"count":0,"href":"http:\/\/www.amibroker.org\/editable_userkb\/wp-json\/wp\/v2\/posts\/53\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.amibroker.org\/editable_userkb\/wp-json\/wp\/v2\/media?parent=53"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.amibroker.org\/editable_userkb\/wp-json\/wp\/v2\/categories?post=53"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.amibroker.org\/editable_userkb\/wp-json\/wp\/v2\/tags?post=53"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}function T3( Price, T3Periods, s )
\n{
\ne1 = AMA( Price, 2 \/ (T3Periods+1));
\ne2 = AMA( e1, 2 \/ (T3Periods+1));
\ne3 = AMA( e2, 2 \/ (T3Periods+1));
\ne4 = AMA( e3, 2 \/ (T3Periods+1));
\ne5 = AMA( e4, 2 \/ (T3Periods+1));
\ne6 = AMA( e5, 2 \/ (T3Periods+1));
\nC1 = -s^3;
\nC2 = 3*s^2*(1+s);
\nC3 = -3*s*(s+1)^2;
\nC4 = (1+s)^3;
\nT3Result= c1*e6+c2*e5+c3*e4+c4*e3;
\nreturn T3Result;
\n}<\/code>
\n
\nfunction T3r( C, T3Sensitivity, T3Periods, ResetReference )
\n{
\nglobal Reset;
\nCPrice \t\t= IIf(Reset, ResetReference, C );
\nT3Periods = Min( T3Periods, BarsSince(Reset));
\nT3Periods \t= IIf(Reset,1, T3Periods );
\ns\t= T3Sensitivity;
\ne1\t= AMA( CPrice, 2 \/ (T3Periods+1));
\ne2\t= AMA( e1, 2 \/ (T3Periods+1));
\ne3\t= AMA( e2, 2 \/ (T3Periods+1));
\ne4\t= AMA( e3, 2 \/ (T3Periods+1));
\ne5\t= AMA( e4, 2 \/ (T3Periods+1));
\ne6\t= AMA( e5, 2 \/ (T3Periods+1));
\nC1 = -s^3;
\nC2 = 3*s^2*(1+s);
\nC3 = -3*s*(s+1)^2;
\nC4 = (1+s)^3;
\nT3Result= c1*e6+c2*e5+c3*e4+c4*e3;
\nreturn T3Result;
\n}<\/code><\/p>\nT3Sensitivity\t= Param(\"T3 Sensitivity\",1,0.1,5,0.01);
\nT3Periods \t\t= Param(\"T3 Periods\",3,1,10,1);
\nReset\t\t\t= GapUp() OR GapDown();
\nResetReference\t= (H+L+C)\/3;
\nT3rPlot = T3r( C, T3Sensitivity, T3Periods, ResetReference );
\nPlot(C,\"\\nClose\",IIf(Reset,2,1),128);
\nPlot(T3rPlot,\"\\nResetable T3\",4,1|styleThick);
\nPlot(T3( C, T3Periods, T3Sensitivity),\"\\nTraditional T3\",6,1|styleThick);<\/code><\/p>\n