T3 CCI_v1
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This tool is designed to provide traders with a smoother, more refined view of market momentum by combining two distinct mathematical concepts: the Commodity Channel Index (CCI) and the T3 Moving Average logic. Instead of showing raw, jagged price movements, this indicator aims to filter out "market noise" to help identify clearer trends.
How the Logic Works
To understand how this works without looking at the underlying math, it helps to break it down into three stages:
1. Capturing Momentum (The CCI Component) The foundation of this tool is the Commodity Channel Index. This is a standard technical indicator used to measure where the current price stands relative to its average over a specific period. Essentially, it tells you if the price is currently "overbought" or "oversold."
2. The Smoothing Process (The T3 Logic) Raw momentum data can often be erratic, jumping up and down rapidly. This script applies a sophisticated smoothing technique known as a T3 Moving Average. Unlike a simple moving average, which treats all data points with equal importance, this logic uses a weighted approach. It calculates the data multiple times in layers (a process of compounding) to create a line that is much more responsive to real trends while remaining exceptionally smooth.
3. The Final Synthesis The script takes the momentum data and puts it through several "filters." By repeating the weighting calculation across multiple stages, it reduces the lag typically found in other moving averages. The final result—the red line you see on your chart—represents a refined version of market momentum.
What this means for the user
- Reduced Noise: Because of the T3 smoothing logic, the indicator is less likely to react to minor price fluctuations that don't represent a real change in trend.
- Trend Clarity: By combining CCI with these filters, the tool provides a clearer picture of the "flow" of the market.
- Customizability: You can adjust the sensitivity by changing the Period settings, allowing you to choose between a faster-reacting line or one that focuses on long-term stability.
/*-----------------------------+
| |
| Shared by www.Aptrafx.com |
| |
+------------------------------*/
//+------------------------------------------------------------------+
//| T3 CCI.mq4 |
//| adoleh2000 |
//| http://groups.yahoo.com/group/MetaTrader_Experts_and_Indicators/ |
//+------------------------------------------------------------------+
#property copyright "Modification of T3 MACO. Thanks to Perky_z and Mojos Program"
#property link "http://groups.yahoo.com/group/MetaTrader_Experts_and_Indicators/"
#property indicator_separate_window
#property indicator_buffers 1
#property indicator_color1 Red
extern int CCI_Period = 15;
extern int T3_Period = 5;
extern double b = 0.7;
double MapBuffer[];
double e1,e2,e3,e4,e5,e6;
double c1,c2,c3,c4;
double n,w1,w2,b2,b3;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- indicators setting
SetIndexStyle(0,DRAW_LINE,STYLE_SOLID,1,Red);
IndicatorDigits(MarketInfo(Symbol(),MODE_DIGITS));
IndicatorShortName("T3_ CCI "+CCI_Period);
SetIndexBuffer(0,MapBuffer);
//---- variable reset
e1=0; e2=0; e3=0; e4=0; e5=0; e6=0;
c1=0; c2=0; c3=0; c4=0;
n=0;
w1=0; w2=0;
b2=0; b3=0;
b2=b*b;
b3=b2*b;
c1=-b3;
c2=(3*(b2+b3));
c3=-3*(2*b2+b+b3);
c4=(1+3*b+b3+3*b2);
n=T3_Period;
if (n<1) n=1;
n = 1 + 0.5*(n-1);
w1 = 2 / (n + 1);
w2 = 1 - w1;
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
int limit=Bars;
//---- indicator calculation
for(int i=limit; i>=0; i--)
{
e1 = w1*(iCCI(NULL,0,CCI_Period,PRICE_MEDIAN,i)) + w2*e1;
e2 = w1*e1 + w2*e2;
e3 = w1*e2 + w2*e3;
e4 = w1*e3 + w2*e4;
e5 = w1*e4 + w2*e5;
e6 = w1*e5 + w2*e6;
MapBuffer[i]=c1*e6 + c2*e5 + c3*e4 + c4*e3;
}
//----
return(0);
}
//+------------------------------------------------------------------+
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