T3_v3
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The T3 indicator is a sophisticated technical analysis tool designed to track market trends by smoothing out price fluctuations. Unlike standard moving averages, which can often react too slowly to market changes or produce "choppy" signals that lead to false entries, the T3 logic utilizes a multi-layered mathematical approach to provide a cleaner, more responsive visualization of price action.
How the Logic Works
The core functionality of this script relies on a process called recursive smoothing. Instead of looking at a simple average of the last few price points, the script processes the data through several successive stages:
- Layered Filtering: The script takes the current closing price and applies a weighted formula to create an initial smoothed value. It then takes that result and feeds it back into the same formula multiple times (creating layers). By repeating this cycle six times, the tool effectively filters out "market noise"—those minor, insignificant price zig-zags—while retaining the underlying momentum of the trend.
- Dynamic Weighting: The logic uses specific coefficients (derived from your input settings) to determine how much importance to give to the most recent data versus older data. This allows the indicator to balance two competing needs: being smooth enough to identify a clear trend, but reactive enough to catch a trend reversal quickly.
- Complex Polynomial Calculation: At its final stage, the script combines these multi-layered results using a specific mathematical polynomial. This produces a final line on your chart that represents a highly refined version of the price history.
Practical Behavior for the Trader
Because of this underlying logic, the T3 indicator behaves differently than a standard moving average in the following ways:
- Reduced Lag: Because it uses a recursive calculation rather than a simple linear one, it can often "hug" the price action more closely, showing you where the trend is heading with less delay.
- Trend Clarity: By filtering out the minor fluctuations of the market, the red line produced by this script provides a clearer path of least resistance. When the line moves upward, it confirms bullish momentum; when it moves downward, it confirms bearish pressure.
- Smooth Transitions: The transition between different price movements is handled gracefully by the multi-layer smoothing, helping traders avoid making impulsive decisions based on temporary price spikes.
In summary, this script acts as a high-precision "filter" for your charts. It takes the raw, messy data of price movement and distills it into a smooth, reliable trend line by running the data through a series of mathematical echoes.
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T3_v3
/*-----------------------------+
| |
| Shared by www.Aptrafx.com |
| |
+------------------------------*/
//+------------------------------------------------------------------+
//| T3.mq4 |
//| MojoFX |
//| http://groups.yahoo.com/group/MetaTrader_Experts_and_Indicators/ |
//+------------------------------------------------------------------+
#property copyright "MojoFX - Conversion only"
#property link "http://groups.yahoo.com/group/MetaTrader_Experts_and_Indicators/"
#property indicator_chart_window
#property indicator_buffers 1
#property indicator_color1 Red
extern int MA_Period = 14;
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"+MA_Period);
SetIndexDrawBegin(0,100);
SetIndexBuffer(0,MapBuffer);
//---- variable reset
//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=MA_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;
int counted_bars=IndicatorCounted();
if (counted_bars<0) return (-1);
if (counted_bars>0) counted_bars--;
limit=(Bars-counted_bars)-1;
//---- indicator calculation
ArrayResize(e1, Bars+1);
ArrayResize(e2, Bars+1);
ArrayResize(e3, Bars+1);
ArrayResize(e4, Bars+1);
ArrayResize(e5, Bars+1);
ArrayResize(e6, Bars+1);
for(int i=limit; i>=0; i--)
{
e1[Bars-i] = w1*Close[i] + w2*e1[(Bars-i)-1];
e2[Bars-i] = w1*e1[Bars-i] + w2*e2[(Bars-i)-1];
e3[Bars-i] = w1*e2[Bars-i] + w2*e3[(Bars-i)-1];
e4[Bars-i] = w1*e3[Bars-i] + w2*e4[(Bars-i)-1];
e5[Bars-i] = w1*e4[Bars-i] + w2*e5[(Bars-i)-1];
e6[Bars-i] = w1*e5[Bars-i] + w2*e6[(Bars-i)-1];
//Print ("I- ",i, "Bars-I ",Bars-i);
MapBuffer[i]=c1*e6[Bars-i] + c2*e5[Bars-i] + c3*e4[Bars-i] + c4*e3[Bars-i];
}
//----
return(0);
}
//+------------------------------------------------------------------+
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