_2523MTF PCCI-as a filter
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The Digital PCCI Filter is a specialized technical analysis tool designed to smooth out market noise and highlight underlying price trends. Unlike standard moving averages that simply average previous prices, this script utilizes a "Digital Signal Processing" approach to analyze price action.
How the Logic Works
1. The Preset Data Profile At the heart of this script is a pre-defined set of numerical coefficients (a weighted list of values). These numbers act as a sophisticated "recipe." Instead of giving equal importance to every past price point, these coefficients dictate exactly how much influence each historical data point should have on the current calculation.
2. Weighted Trend Analysis The script performs a continuous mathematical operation where it looks back across a specific window of historical bars. For every new price update, it:
- Retrieves a series of previous closing prices.
- Multiplies each of those historical prices by its corresponding weight from the pre-set list.
- Sums these products together to create a "predicted" or "filtered" price response.
3. The Deviation Calculation (The Final Output) The final value you see on your chart is not the filtered price itself, but rather the difference between the actual current market price and the calculated "filtered response."
Essentially, the logic follows this path:
- Current Price - Predicted Response = Filter Value.
What This Means for the User
By subtracting the weighted trend from the actual price, the indicator reveals how much the market is currently deviating from its established digital signal.
In practical terms, this helps traders identify:
- Momentum: How aggressively the price is pushing away from its "normal" filtered path.
- Noise Reduction: By focusing on the mathematical difference, the script helps filter out the minor, erratic fluctuations of the market to reveal smoother transitions.
- Trend Alignment: It provides a cleaner view of whether the current price action is staying in line with the broader digital trend or breaking away from it.
/*-----------------------------+
| |
| Shared by www.Aptrafx.com |
| |
+------------------------------*/
//+------------------------------------------------------------------+
//| Digital PCCI Filter |
//| Copyright (c) Sergey Iljukhin, Novosibirsk. |
//| mailto:sergey@tibet.ru http://fx.qrz.ru/ |
//+------------------------------------------------------------------+
#property copyright "Copyright (c) 2005, Sergey Iljukhin, Novosibirsk"
#property link "mailto:sergey@tibet.ru"
// --- Parameters: P1=38, D1=28, A1=40
// --- P2=52, D2=31, A2=40, Ripple=0.08, Delay=0
// --- Order [Auto]=106, Calculate method=2
#property indicator_separate_window
#property indicator_buffers 1
#property indicator_color1 Red
extern int TF = 0;
//---- buffers
double FilterBuffer[];
double Values[] = {
+0.1177628838235,
+0.1170077388431,
+0.1147601209029,
+0.1110729054065,
+0.1060324421434,
+0.0997560988008,
+0.0923890376402,
+0.0841000389219,
+0.0750766919597,
+0.0655202662708,
+0.0556401583046,
+0.0456482572592,
+0.0357530528012,
+0.02615415804227,
+0.01703731282680,
+0.00856960311288,
+0.000895555708556,
-0.00586627422066,
-0.01162552971203,
-0.01632152444323,
-0.01992414580732,
-0.02243335117589,
-0.02387813894599,
-0.02431430200598,
-0.02382176331725,
-0.02250140527159,
-0.02047075493180,
-0.01786000052706,
-0.01480733499641,
-0.01145463232852,
-0.00794304696010,
-0.00440829083275,
-0.000977238472653,
+0.002235823933755,
+0.00513191787383,
+0.00762972457736,
+0.00966747623918,
+0.01120310303187,
+0.01221499285956,
+0.01270127547603,
+0.01267881242200,
+0.01218165493397,
+0.01125820035359,
+0.00996954486984,
+0.00838605323109,
+0.00658436935337,
+0.00464439195323,
+0.002645759417416,
+0.000666068159555,
-0.001222776729259,
-0.002956488520058,
-0.00448011021214,
-0.00574988855361,
-0.00673332989225,
-0.00741117882839,
-0.00777644547070,
-0.00783388153265,
-0.00759966748743,
-0.00709931269272,
-0.00636769053766,
-0.00544559940274,
-0.00437852874428,
-0.00321542503890,
-0.002005580069262,
-0.000798178859997,
+0.000361723322003,
+0.001433101593600,
+0.002380073229874,
+0.00317453700490,
+0.00379492177651,
+0.00422884523807,
+0.00447038314289,
+0.00452100306476,
+0.00439082398691,
+0.00409492037175,
+0.00365528338580,
+0.003096238149856,
+0.002446112685573,
+0.001736376831290,
+0.000996103380422,
+0.0002557237615143,
-0.000458282529397,
-0.001119581482823,
-0.001704893115208,
-0.002199032152313,
-0.002586916898054,
-0.002861741841535,
-0.003018651749353,
-0.003060101508137,
-0.002997112675297,
-0.002834938217095,
-0.002589089321820,
-0.002272072078644,
-0.001902835889698,
-0.001502872027811,
-0.001077466851623,
-0.000655481642188,
-0.0002511660753314,
+0.0001137882502083,
+0.000426098842482,
+0.000714775119642,
+0.000916639580735,
+0.001063116482197,
+0.001143113996535,
+0.001159315803654,
+0.00922554212244
};
//+------------------------------------------------------------------+
//| Digital filter indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
string short_name;
//---- indicator line
SetIndexStyle(0,DRAW_LINE);
SetIndexBuffer(0,FilterBuffer);
SetIndexDrawBegin(0,106);
IndicatorShortName ("PCCI as filter("+tf2str(TF)+")");
//----
return(0);
}
//+------------------------------------------------------------------+
//| Digital filter main function |
//+------------------------------------------------------------------+
int start()
{
int i,counted_bars=IndicatorCounted();
double response = 0.0;
//----
if(Bars<=106) return(0);
//---- initial zero
if(counted_bars<106)
for(i=1;i<=0;i++) FilterBuffer[Bars-i]=0.0;
//----
int limit =Bars-106-1;
if(counted_bars>=106) limit=Bars-counted_bars-1;
for (i=0; i<limit; i++)
{
response = 0.0;
for (int k=0; k<ArraySize(Values); k++)
response += Values[k] * iClose(NULL, TF, i+k);
FilterBuffer[i]=iClose(NULL, TF, i) - response;
}
return(0);
}
string tf2str(int TF)
{
if (TF == 0) TF = Period();
switch (TF)
{
case PERIOD_M1 : return("1M"); break;
case PERIOD_M5 : return("5M"); break;
case PERIOD_M15 : return("15M"); break;
case PERIOD_M30 : return("30M"); break;
case PERIOD_H1 : return("1H"); break;
case PERIOD_H4 : return("4H"); break;
case PERIOD_D1 : return("1D"); break;
case PERIOD_MN1 : return("1MN"); break;
case PERIOD_W1 : return("1W"); break;
}
return("");
}
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