#MTF 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. Instead of simply following the immediate movement of price, this script uses a sophisticated mathematical approach to separate "signal" from "noise."
Core Logic Overview
The script operates by calculating a weighted prediction of where the price should be based on historical data and then comparing that prediction to the actual current price. Here is how that process works in plain terms:
- Weighted Data Analysis: The tool utilizes a pre-defined set of coefficients (a "filter" sequence). Each coefficient is assigned to a specific point in history. This means the script doesn't treat every past price equally; it calculates a custom weighted average where certain historical points have more influence than others.
- Response Calculation: For every bar on the chart, the script looks back at a significant number of previous closes. It multiplies these prices by their corresponding weights in the filter sequence to generate a "response" value. This response represents the filtered trend of the market.
- Deviation Tracking: Once the script has calculated the expected response for a specific point in time, it subtracts that value from the actual closing price.
Visual Representation
The final output shown on your chart is the difference between the Actual Price and the Calculated Response. By subtracting the filtered trend from the raw price, the indicator identifies the "residual" movement. This allows traders to see how much the current price is deviating from its established digital path.
Key Features
- Automated Timeframe Detection: The script automatically detects the timeframe you are currently viewing (e.g., 1-minute, 1-hour, Daily) and adjusts its display name accordingly for easier navigation.
- Deep Historical Lookback: To ensure accuracy, the logic requires a minimum amount of historical data to initialize. It processes a high number of previous data points to ensure the filter is stable and reliable before displaying results.
- Clean Visualization: The indicator is designed to appear in a separate window below your main chart, providing a dedicated space to monitor price deviations without cluttering the primary price action.
Price Data Components
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#MTF PCCI-as a filter
//+------------------------------------------------------------------+
//| 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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