DislikedHi, Xaphod. I have a question regarding 'linear interpolation' in your MTF indicators. Is this simply a smooting method for better look? Does this have any drawback? If without it, what will the indicator look like? I am seeing some other Mtf indis and find some has kinda interpolation or smoothing, while some others don't.Ignored
It gives a smoother line without abrupt steps.
Linear interpolation can be described as a straight line drawn between 2 points. Most of the indicators on a chart are linearly interpolated. Ie. they draw a straight line from the value for one bar to the next. As the distance between bars is 1, it mostly looks like a smooth curve.
When one is drawing higher time-frame indicators on a chart, the distance between two bars is no longer 1 bar but several bars. Most MTF indicators simply draw the current HTF value for all the LTF bars which gives horizontal lines with increments/decrements in steps.
Non-linear interpolation uses more advanced mathematical methods to estimate/predict the line. It is a bit pointless when dealing with a few points (3 points for a M15 on M5 chart). For more points, ex H1 on M5 it becomes more realistic. However, it also becomes a matter of curve-fitting which does not usually work reliably for these kinds of charts.
Here is an example of a non-interpolated MTF indicator. M15 on M5: