John F. introuced Zero-lag Indicator in Nov, 2010.
In “Zero Lag (Well, Almost)” article, authors John and Ric Way presented their zero-lag indicator and strategy. They have adapted their zero-lag by extending the functionality in an additional chart indicator named “Zero-Lag EMA”. Labels were added so that the user can be alerted when a crossing of the averages occurs.
The authors created an error-correcting filter for an ( ) that seeks to minimize the lag effect of increasing periods. Increasing the gain parameter from zero changes the filter from an with lag to effectively zero lag (albeit with zero smoothing also). The crossover of these lines can be used to form a trading strategy, with the addition of some threshold value for the difference between the Price and error-correcting line.
---> Zero-lag fast line
Trigger ---> Zero-lag slow line
Pros and Cons
100% John F. definition translation, even variable names are the same. This help readers who would like to use pine to read his book.
The 76th script for Blackcat1402 John F. Week publication.
In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.
The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.
Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.
Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.
Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.
Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.
Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
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