!_MTF PCCI-as a filter
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The Digital PCCI Filter is a specialized technical analysis tool designed to isolate significant price movements by stripping away "market noise." Unlike standard moving averages that simply smooth out price history, this script employs a sophisticated mathematical approach to identify the underlying trend of an asset.
Core Logic and Functionality
1. The Prediction Mechanism The heart of this script lies in its ability to calculate a "predicted" value based on historical data. It looks back at a specific window of past prices (specifically 91 points of data) and applies a unique set of mathematical weights to each one. These weights are pre-calculated to represent a digital filter's response, determining how much influence each past price should have on the current moment.
2. Isolating the Signal from the Noise Once the script calculates what the "predicted" price should be based on its internal logic, it compares that prediction against the actual live price of the asset. The difference between the actual price and this calculated prediction is what the indicator displays.
- If the market is moving in a steady, predictable manner (noise), the filter remains relatively flat.
- When the market experiences a sudden shift or significant momentum that deviates from the established pattern, the filter reacts visually.
3. Adaptive Visual Representation The tool operates on a "separate window" basis, meaning it doesn't overlay directly on your price candles but sits in its own pane below the chart. This allows you to observe the "clean" movement of the market's momentum independently from the volatile price action above.
Key Characteristics for the User
- Pre-Defined Precision: The script uses a fixed array of coefficients (the
Valuesconstant). These are specifically tuned to provide a consistent filtering experience, ensuring that the tool reacts the same way every time it is applied to a chart. - Dynamic Timeframe Integration: The tool is designed to be flexible. It can automatically detect which timeframe you are currently viewing (e.g., 1-minute, 1-hour, Daily) and adjust its labeling accordingly, making it easy to switch between different trading perspectives without manually reconfiguration.
- Data Requirement: Because the logic requires a specific depth of history to calculate its predictions accurately, the tool is designed to initialize only once enough historical data (at least 106 bars) is present on the chart.
In summary, the Digital PCCI Filter acts as a "lens" that helps traders see past the distractions of minor price fluctuations, highlighting the more significant structural movements of the market by showing the mathematical deviation between reality and trend prediction.
//+------------------------------------------------------------------+
//| 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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