# Wavelet Trend Extractor MT4

### On display Wavelet Trend Extractor

The indicator uses Wavelet technology to extract the trend of price series in FX. As used in this technology is similar indicator wavelet wavelet functions implemented in MatLab Wavelet Toolbox (http://www.mathworks.co.uk/products/wavelet/features.html#key-features). Wavelet-decomposed signals to display up to 6 tenths coincide with the values ​​of the same signals in MatLab Wavelet Toolbox.

This wavelet technology is commonly used in earthquake-resistant construction, signal processing, time series analysis, etc. The steps associated with operation of the indicator include expansion signals into a plurality of levels wave signals and reconstruction trend based on the filtered wave cycles. In more detail, after the price series expansion part of the wave cycle the noise is removed from the price signal, and then the remainder of the wave cycle is used to construct the trend.

For this particular problem, we use a technique Undecimated Harr Wavelet. The basic idea of ​​this indicator – to provide our customers with an accurate tool for scientific data analysis. Of course, Wavelet Trend Extractor indicator for forex, and for the construction of advisers. In addition to the original algorithms of decomposition and reconstruction, we have included many other useful functions in the Wavelet Trend Extractor indicator. The indicator can be used for manual trading, and to develop their own expert.

### input variables

• Trend Mode: Can only take values ​​0, 1 or 2. Mode 0 uses only one fully formed trend for the input and output signals. In Mode 1 uses two completely formed trend as signals for input and output. In mode 2, the individual wave cycle used for input and output signals.
• Wavelet Selection Level: Selection of the wave cycle. In modes 0 and 1 Wavelet Selection Level parameter filter means for constructing intensity trend (the larger the value, the more intense filtering). Mode 2 is the choice of the wave cycle. (The smaller the value, the higher the frequency of the wave, and vice versa.)
• Smoothing Period smoothing period for the signal line. Signal line – simple moving average wave histogram. Recommended value – 6.
• Bars to scan: Number of bars, the recommended value does not need to change the default 400. The parameter value.

### How to use the Wavelet Trend Extractor indicator in manual trading

In manual trading is recommended Wavelet Trend Extractor indicator timeframe with H1, H4, or on the daily chart. Using indicator Wavelet Trend Extractor is very similar to the MACD indicator. Recommended settings:

• Trend Mode 2 and Wavelet Selection Level 3, Signal Period 6: buy, if the histogram > signal, and sell when the histogram < signal
• Trend Mode 2 and Wavelet Selection Level 2, Signal Period 0 (no signal line): buy when the histogram > 0, and sell when the histogram < 0
• Trend Mode 1 and Wavelet Selection Level 2: buy when the histogram > 0, and sell when the histogram < 0

Depending on the currency pair, the optimal settings may differ slightly. buy and sell signals are determined by the histogram value on your chart.

### How to use the Wavelet Trend Extractor trend indicator and tracking Advisor

To call Wavelet Trend Extractor indicator of experts in MetaTrader 4, use the following code, modify it if necessary. To try all combinations of parameters Trend Mode (3) and Wavelet Selection Level (6), you must pass a total of 18 steps in the optimization in the strategy tester. This is a small number of combinations – one of the advantages of wavelet techniques of classical indicators. For advisors recommend that you test all three modes of Trend Mode 0, 1 and 2, since it is possible to get good results in all three modes.

input int TrendMode = 2; // mode can only be 0, 1 or 2
input int WaveLevelSelection = 3; // value must be less than Wave Resolution Level.
input int SignalPeriod = 6; // smoothing period for the selected wave cycle mode only Trend Mode 2.
input int BarsToScan = 400; // number of bars is only from 400 to 2000.
input bool UseWhiteChart = true; // Show comment
input bool DisplayComment = true; // Show comment
double histogram = iCustom (Symbol (), Period (), “Wavelet Trend Extractor”, TrendMode, WaveletSelectionLevel, SignalPeriod, 400, true, true, 0,0);
double signal = iCustom (Symbol (), Period (), “Wavelet Trend Extractor”, TrendMode, WaveletSelectionLevel, SignalPeriod, 400, true, true, 2,0);

• Auto Investment Manager (details on the website http://aim.ucoz.co.uk/)

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