Alexander’s Filter ALF

What

This indicator shows the growth or decline of the price.

How

                  C (t)

ALF =      _______    - 1 x 100

                C (t-n)

Where C (t) is the closing price.

 ‘n’ characterises the observation period and can assume values between 1 and 500. The standard setting is ‘n’ = 12.

When

A sufficiently strong growth can be interpreted as a buy signal, and a strong decline as a sell signal.