NET on Variety Moving Averages [Loxx]

NET (Noise Elimination Technology) on Variety Moving Averages is a moving average indicator that applies John Ehlers' NET (Noise Elimination Technology) to your choice of 36 different moving averages.

█ What is NET (Noise Elimination Technology)?

Noise Elimination Technology (NET) is a method introduced by John Ehlers to enhance the clarity of technical indicators by removing noise without resorting to filtering. Here's a more detailed explanation:

Purpose of Technical Indicators: Technical indicators aim to provide insights into market inefficiencies, assisting traders in making informed decisions. However, many indicators are inherently noisy due to their reliance on a limited amount of data.

Traditional Noise Removal: Noise in indicators is typically removed using smoothing filters. While these filters can reduce noise, they introduce lag, leading to potentially delayed trading decisions which can be costly.

NET's Approach: NET offers a solution to this problem by using the nonlinearity of a rank-ordered Kendall correlation. Instead of filtering, NET clarifies indicators by focusing on their main direction and stripping out noise components.

Kendall Correlation: This is a statistical method that compares the ranked order of two sets of random variables. These pairs of ranked variables can be either concordant or discordant. In the context of NET:

• The "y" variable represents a straight line with a positive slope.
  
• The "x" variable is the output of the technical indicator.
  

When applied, the Kendall correlation in this configuration removes noise components that don't align with the primary direction of the indicator.

NET's Mechanism:

• The "y" variable (a straight line with a positive slope) and the "x" variable (indicator output) are used in the Kendall correlation.
  
• This correlation essentially removes noise components not aligned with the main direction of the indicator in a nonlinear manner.
  
• The effectiveness of NET lies in its ability to reduce noise without introducing lag.
  

Flexibility: NET is designed to be versatile and can be applied to various technical indicators. It doesn't necessarily replace traditional smoothing filters but can complement them to provide a clearer visual representation of the indicator's behavior.

In essence, NET offers a novel approach to refining technical indicators by removing noise using the principles of Kendall correlation, without the drawbacks associated with traditional smoothing filters.

█ Moving Average Types

ADXvma - Average Directional Volatility Moving Average
Ahrens Moving Average
Alexander Moving Average - ALXMA
Double Exponential Moving Average - DEMA
Double Smoothed Exponential Moving Average - DSEMA
Exponential Moving Average - EMA
Fast Exponential Moving Average - FEMA
Fractal Adaptive Moving Average - FRAMA
Hull Moving Average - HMA
IE/2 - Early T3 by Tim Tilson
Integral of Linear Regression Slope - ILRS
Instantaneous Trendline
Laguerre Filter
Leader Exponential Moving Average
Linear Regression Value - LSMA (Least Squares Moving Average)
Linear Weighted Moving Average - LWMA
McGinley Dynamic
McNicholl EMA
Non-Lag Moving Average
Parabolic Weighted Moving Average
Recursive Moving Trendline
Simple Moving Average - SMA
Sine Weighted Moving Average
Smoothed Moving Average - SMMA
Smoother
Super Smoother
Three-pole Ehlers Butterworth
Three-pole Ehlers Smoother
Triangular Moving Average - TMA
Triple Exponential Moving Average - TEMA
Two-pole Ehlers Butterworth
Two-pole Ehlers smoother
Volume Weighted EMA - VEMA
Zero-Lag DEMA - Zero Lag Double Exponential Moving Average
Zero-Lag Moving Average
Zero Lag TEMA - Zero Lag Triple Exponential Moving Average

█ Included

• Bar coloring
  
• Alerts
  
• Channels fill
  
• Loxx's Expanded Source Types
  

█ Libraries included

loxxmas - moving averages used in Loxx's indis & strats

loxxexpandedsourcetypes