You should immediately warn those traders who will continue to read this review, let alone use the filter: either use it intuitively, or be prepared for the fact that you will need in-depth knowledge of mathematics. Unlike more simple stochastics, MA or ATR, from a mathematical point of view, the Gaussian Filter indicator is built on complex Gaussian distribution formulas.

The indicator is accurate, there is even information on the forums that when testing for 2 years history (2016-2017) there was not a single losing trade. True, the frequency of opening deals is silent and there is no screen for the backtest.

• Finding a Gaussian Filter indicator on the Internet is not easy. We are ready to help you: write in the comments that you want to receive the template and we will send it to you for free by email.

## Gaussian Filter – analyze the main trend and make money on a reversal

Gaussian Filter is an indicator that displays price direction. The indicator filter is based on the Gaussian distribution. It is also called the normal distribution or the Gauss-Laplace distribution. His formula takes into account the mathematical expectation, standard deviation, median and mode of distribution. We think you can stop at this description of the filter formula.

• Timeframe – 1 day.
• Currency pair – EUR / USD.
• Gaussian Filter Period – 12.

Despite the fact that the filter has few settings, they are quite enough to catch signals. The frequency of the signals is relatively small, but it is not recommended to lower the timeframe. However, there is always room for experimentation.

Market entry conditions for purchase:

• Gaussian Filter displays 5 red dots in a row on a red line that has a falling character. On the next candle you can open a position.
• Stop-loss – 200 points (quite a suitable distance for the daily timeframe), the target profit is 100 points.
• If the candlestick closes up, its body is more than 30 points and the take profit has not been reached, stop loss is moved to the breakeven level and leave the position open.
• If the candlestick closes down but does not catch the stop loss and, at the same time, its body is more than 50-70 points, we shift the take profit to the position opening level.

Market Entry Conditions:

• Gaussian Filter displays 5 red dots in a row on a blue line that has a growing character. On the next candle you can open a position.
• Stop-loss – 200 points (quite a suitable distance for the daily timeframe), the target profit is 100 points.
• If the candlestick closes down, its body is more than 30 points and the take profit has not been reached, the stop loss is moved to the breakeven level and leave the position open.
• If the candlestick closes up but does not catch the stop loss and, at the same time, its body is more than 50-70 points, we shift the take profit to the position opening level.

The essence of the strategy is to catch the price reversal and earn on a strong reverse pullback. And even if after entering the market for some time the price will go in the main direction, it is better to wait out the hanging loss, as the price is likely to turn around.