T3_v4
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The T3 Moving Average (T3MA) is a sophisticated technical analysis tool designed to provide a smoother and more responsive trend line than standard moving averages. While traditional averages often suffer from "lag"—where the indicator reacts slowly to price changes—or become too jagged, this script uses a specific mathematical approach to balance smoothness with accuracy.
How it Works
The logic behind this script relies on a multi-layered smoothing process. Instead of calculating a single average of the price, the tool performs several consecutive rounds of calculations:
- Iterative Smoothing: The script takes the closing price and applies an Exponential Moving Average (EMA). It then takes that result and applies another EMA to it, repeating this sequence multiple times. This layering helps to "iron out" the random noise in market price movements.
- The Volume Factor: A specific setting called the "Volume Factor" is used as a primary weight. This factor determines how much influence the smoothing layers have on the final result. By adjusting this, the indicator can be tuned to be either very fluid and slow, or tighter and more reactive to immediate price shifts.
- The Final Calculation: After performing these multiple layers of smoothing, the script applies a weighted formula (using coefficients derived from the Volume Factor) to combine the various stages into one final line.
The Result for Traders
By using this multi-layered logic, the T3MA aims to show the "true" direction of the market trend more clearly than a standard moving average would. It reduces the visual clutter of minor price fluctuations while remaining sensitive enough to capture significant trend shifts quickly. For the user, this means a cleaner chart that helps in identifying whether the current momentum is trending up, down, or consolidating.
//+------------------------------------------------------------------+
//| T3MA.mq4 |
//| Copyright © 2005, Nick Bilak |
//| http://www.forex-tsd.com/ |
//| modified for VolumeFactor by: ben |
//| thanks to Bilak |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2005, Nick Bilak"
#property link "http://www.forex-tsd.com/"
//---- indicator settings
#property indicator_chart_window
#property indicator_buffers 1
#property indicator_color1 Lime
//---- indicator parameters
extern int Periods = 8; //12
extern double VolumeFactor = 0.7; //0.8
//---- indicator buffers
double e1[];
double e2[];
double e3[];
double e4[];
double e5[];
double e6[];
double e7[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
IndicatorBuffers(7);
//---- drawing settings
SetIndexStyle(0,DRAW_LINE,STYLE_SOLID,2);
SetIndexDrawBegin(0,Periods);
if(
!SetIndexBuffer(0,e7) &&
!SetIndexBuffer(1,e2) &&
!SetIndexBuffer(2,e3) &&
!SetIndexBuffer(3,e4) &&
!SetIndexBuffer(4,e5) &&
!SetIndexBuffer(5,e6) &&
!SetIndexBuffer(6,e1)
)
Print("cannot set indicator buffers!");
//---- name for DataWindow and indicator subwindow label
IndicatorShortName("T3MA("+Periods+")");
//---- initialization done
return(0);
}
//+------------------------------------------------------------------+
//| Moving Average of Oscillator |
//+------------------------------------------------------------------+
int start()
{
int i,limit;
int counted_bars=IndicatorCounted();
//---- check for possible errors
if(counted_bars<0) return(-1);
//---- last counted bar will be recounted
if(counted_bars>0) counted_bars--;
//limit=Bars-Periods-1-counted_bars;
limit=Bars-counted_bars;
//---- main loop
for(i=limit; i>=0; i--)
{
e1[i]=iMA(NULL,0,Periods,0,MODE_EMA,PRICE_CLOSE,i);
}
for(i=limit; i>=0; i--)
{
e2[i]=iMAOnArray(e1,0,Periods,0,MODE_EMA,i);
}
for(i=limit; i>=0; i--)
{
e3[i]=iMAOnArray(e2,0,Periods,0,MODE_EMA,i);
}
for(i=limit; i>=0; i--)
{
e4[i]=iMAOnArray(e3,0,Periods,0,MODE_EMA,i);
}
for(i=limit; i>=0; i--)
{
e5[i]=iMAOnArray(e4,0,Periods,0,MODE_EMA,i);
}
double a= VolumeFactor; //0.8;
double c1=-a*a*a;
double c2=3*a*a+3*a*a*a;
double c3=-6*a*a-3*a-3*a*a*a;
double c4=1+3*a+a*a*a+3*a*a;
//T3MA=c1*e6+c2*e5+c3*e4+c4*e3;
for(i=limit; i>=0; i--)
{
e6[i]=iMAOnArray(e5,0,Periods,0,MODE_EMA,i);
e7[i]=c1*e6[i]+c2*e5[i]+c3*e4[i]+c4*e3[i];
}
//---- done
return(0);
}
/*
e1:= Mov(Pr,tPr,mt);
e2:= Mov(e1,tPr,mt);
e3:= Mov(e2,tPr,mt);
e4:= Mov(e3,tPr,mt);
e5:= Mov(e4,tPr,mt);
e6:= Mov(e5,tPr,mt);
c1:= -b*b*b;
c2:= 3*b*b+3*b*b*b;
c3:= -6*b*b-3*b-3*b*b*b;
c4:= 1+3*b+b*b*b+3*b*b;
T3MA:= c1*e6+c2*e5+c3*e4+c4*e3;
*/
//+------------------------------------------------------------------+
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