This indicator is using the modified "correcting" method. Instead of using standard deviation for calculation, it is using EMA deviation and is applied to Ehlers' Super Smoother.
What is EMA-Deviation? By definition, the Standard Deviation (SD, also represented by the Greek letter sigma σ or the Latin letter s) is a measure that is used to quantify the amount of variation or dispersion of a set of data values. In technical analysis we usually use it to measure the level of current volatility.
Standard Deviation is based on Simple Moving Average calculation for mean value. This version is not doing that. It is, instead, using the properties of EMA to calculate what can be called a new type of deviation, and since it is based on EMA. It is similar to Standard Deviation, but on a first glance you shall notice that it is "faster" than the Standard Deviation and that makes it useful when the speed of reaction to volatility is expected from any code or trading system.
What is Ehlers Super Smoother? The Super Smoother filter uses John Ehlers’s “Super Smoother” which consists of a a Two-pole Butterworth filter combined with a 2-bar SMA (Simple Moving Average) that suppresses the 22050 Hz Nyquist frequency: A characteristic of a sampler, which converts a continuous function or signal into a discrete sequence.
Things to know
The yellow and fuchsia thin line is the original Super Smoother
The green and red line is the Corrected Super Smoother
When the original Super Smoother crosses above the Corrected Super Smoother line, its a long, when it crosses below, its a short
Hi Loxx, this is a great indicator, thanks a lot! This studies are really greate because they open our mind and also show us the power of pine scripting! I am just sad to say that someone is using your indicator to sell an unreliable strategy here in Brazil saying that "they" wrote the indicator! I just hope you keep on delevoping your exceptional work and helping people just I like I am doing in my YT channel. Thanks a lot again!
loxx
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@NoobSharks, yep, good catch, unfortunately there is nothing i can do about this, but remember, these public indicators don't have the backtested entries, those entries only exist on my locked down scripts. just let folks know who i am. the folks using this without the backtested entries will eventually regret using it as it's not tuned for trading like that as it stands here. lots of learning required to do it right. good luck.
NoobSharks
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@loxx, DEAL! Today I will record a video about Your strategy comparing it to "what they are selling", and I count on my followers to spread it. I am pretty sure the video will reach a lot of people and they will come to the original source! Count on us!
alisonbr_oliveira
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Good job guys. Coming here from @NoobSharks comments on the group. Unfortunately, there is this on the market. But what matters is knowledge, and learning to do it right.