AM_Detector

Description

AM Detector is a technical indicator that singles out the amplitude modulation component out of the market data spectrum. Based on signal processing techniques, this indicator can help estimate current volatility.

AM Detector is calculated as follows:

  1. The absolute value of the difference between the close and open is calculated for each bar during the indicator period.
  2. The highest calculated absolute value is registered.
  3. The result is smoothed with a moving average of choice (by default, simple moving average).

AM Detector values are always positive. High readings of AM Detector may signify strong volatility.

Input Parameters

Parameter Description
highest length The period for which the highest difference between close and open is to be found.
average length The length to calculate the moving average with.
average type The type of the moving average to be used in the calculation: simple, exponential, weighted, Wilder's, or Hull.

Plots

Plot Description
Volatility The AM Detector plot.
ZeroLine The zero level.

Example*

*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.

  Past performance is no guarantee of future performance.