Critical Bug Report: Flawed logic in "Speed of Tape" indicator's dynamic filter #130
Description
Hello team,
As a collaborator, I have been extensively working with the Speed of Tape indicator and have identified a serious flaw in its dynamic filter logic (AutoFilter) when using Calculation Mode = Delta.
The Issue (Logical Bug):
The moving average (SMA) calculation that defines the dynamic threshold is currently using signed Delta values (+/-). This causes positive and negative values to cancel each other out during periods of high bidirectional volatility (strong buying and strong selling alternated), resulting in an artificially low average.
This leads to constant false alerts, as almost any minor movement exceeds this erroneous average threshold.
The Solution:
The dynamic filter should measure the "magnitude of activity," regardless of direction. Therefore, the SMA calculation must be performed on the absolute value of the Delta (Math.Abs(delta)).
Evidence:
I've attached a comparative image.
- Top (Original): The dynamic filter (blue line) is erratic and too low, generating significant noise.
- Bottom (Fixed): The filter is calculated using absolute values. The blue line correctly follows the activity envelope, effectively filtering out noise.
I hope this information helps fix the indicator in future releases.
Best regards.