Do your indicators give you everything you need?

Which is the exponential moving average (EMA) of price?

Fact: Small changes in indicators can have a large effect on profit – and loss.

Pick up books on technical indicators, and almost all will be based on a moving average filter of some sort – but there are other options. The chart shows a price EMA of length 8 (green) with three other novel filtered lines, all of length 8, but faster or slower than the original EMA depending on the filtering used.

So you can choose the most appropriate for what you want to do to improve your profit potential - eg:

• build a stop from the blue (fastest) line
• determine the trend direction from the red line (slowest – ideally longer than 8)

Smoothing is achieved with much less lag than would exist if averaging were used, allowing more timely inferences to be made, without the distraction of ripples commonly found in conventional indicators. It doesn’t end with price: Leapfrog’s filters can be applied elsewhere (eg to momentum) to offer a wealth of new indicators.

LEAPFROG offers a wide variety of new indicators, putting you in control of speed and smoothness, to create new options for your trading.

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Let LEAPFROG become the wind beneath your trading wings.

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