STLM - Vertex FX Indicator

STLM (Slow Trend line Momentum Histogram) is a powerful VertexFX client side VTL indicator that gives excellent entry and exit signals based on trend following methodology. It is based on Digital Signal Processing method using digital signal co-efficient for smoothing the price and trend movements.
This indicator requires at least 92 bars since it applies the filter co-efficient to the most recent 92 bars.
The STLM is calculated as the difference between the up-trending filtered co-efficient of the recent 92 bars and the down-trending filtered co-efficient of the recent 92 bars. Each close is multiplied by a co-efficient and then sum of these recent 92 closes is added to derive the STLM.
When this difference is increasing the histogram color is GREEN, whereas when it is decreasing then the histogram color is RED.
The concept is that the sideways price movements cancel each other out, and only the core trend direction remains in the calculation. When the trend direction has an upward bias, down-trend signals are filtered out, and when the trend direction has a downward bias, the up-trend signals are filtered out.
BUY - Enter BUY position when indicator histogram color has turned GREEN from RED and is below zero. Do not open position if candle has gap-up opening. Stop loss can be placed at the nearest swing low.
SELL - Enter SELL position when indicator histogram color has turned RED from GREEN and is above zero. Do not open position if candle has gap-down opening. Stop loss can be placed at the nearest swing high.