Mathematical Operations On Indicators

Some purely mathematical operations, found to be useful for development of neural network trading systems, have also been provided and are listed below.

  • Detrend by Least Squares
  • Detrend by First Differences. Same as differentiation
  • FFT of Indicator. Good for detecting cycles in market behavior.
  • Limit and Set to Zero (LIM) This operation is useful for eliminating outliers
  • Summation (SUM). Same as integration
  • Multiply by a Scale Factor
  • Add (or subtract) a Bias

Moving averages