Smoothing a Candlestick Chart

A little bit of smoothing can remove the random movements of the market without introducing too much lag. This 10 line Tradesignal code shows you how to get a smoothed candlestick chart and remove a lot of stress in trading.

The screenshot above shows you a daily candlestick chart of EURUSD and a smoothed version below. This is done with the following code:

The code applies a very short term exponential moving average on itself. This double-exponential smoothing only introduces minimum lag and removes a lot of noise. Lines 4-7 apply this double-exponential smoothing to the open/high/low/close of the original data. Line 10 finally draws the new smoothed candlestick chart.

 

Keep researching,
Philipp

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