This script functions as a custom technical analysis indicator designed to provide traders with a visual representation of market trends. Instead of showing standard price action, it generates a smooth line in a separate window below the main price chart.
Core Logic and Methodology
The primary objective of this tool is to distill complex historical price data into a single, readable signal. It achieves this through the following logical steps:
1. Historical Data Aggregation The script analyzes a specific window of time by looking back at the closing prices of the last 56 candles (or bars) on the chart. This ensures that the indicator is not reacting impulsively to a single moment of volatility but is instead considering a significant amount of recent history.
2. Weighted Calculation Rather than applying a simple average—where every candle would have equal importance—this script uses a "weighted" logic. Each of the 56 historical candles is assigned a specific numerical multiplier (a weight).
- Some past prices are given higher significance, while others are minimized or even inverted in the calculation.
- This mathematical weighting allows the indicator to prioritize certain price movements over others, helping to filter out "noise" and highlight more substantial trend shifts.
3. Trend Smoothing By combining these weighted values into a single formula, the script produces a continuous line. This line acts as a smoothed representation of the underlying market momentum. Because it processes 56 data points simultaneously, the resulting visual is intended to be much smoother than the raw price action, making it easier for a user to identify whether the broader trend is moving upward or downward.
4. Visual Output The final result is displayed as a blue line. When the line moves in a specific direction, it suggests the prevailing sentiment of the market based on the weighted historical data provided by the formula. It serves as a secondary reference point for traders to confirm their analysis of price movements.
/*-----------------------------+
| |
| Shared by www.Aptrafx.com |
| |
+------------------------------*/
//+------------------------------------------------------------------+
//| RBCI.mq4
//|
//+------------------------------------------------------------------+
#property copyright "Copyright 2002, Finware.ru Ltd."
#property link "http://www.finware.ru/"
#property indicator_separate_window
#property indicator_buffers 1
#property indicator_color1 Blue
//---- buffers
double RBCIBuffer[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
string short_name;
//---- indicator line
SetIndexStyle(0,DRAW_LINE);
SetIndexBuffer(0,RBCIBuffer);
SetIndexDrawBegin(0,55);
//----
return(0);
}
//+------------------------------------------------------------------+
//| RBCI |
//+------------------------------------------------------------------+
int start()
{
int i,counted_bars=IndicatorCounted();
//----
if(Bars<=55) return(0);
//---- initial zero
if(counted_bars<55)
for(i=1;i<=0;i++) RBCIBuffer[Bars-i]=0.0;
//----
i=Bars-55-1;
if(counted_bars>=55) i=Bars-counted_bars-1;
while(i>=0)
{
RBCIBuffer[i]=
-(
-35.5241819400*Close[i+0]
-29.3339896500*Close[i+1]
-18.4277449600*Close[i+2]
-5.3418475670*Close[i+3]
+7.0231636950*Close[i+4]
+16.1762815600*Close[i+5]
+20.6566210400*Close[i+6]
+20.3266115800*Close[i+7]
+16.2702390600*Close[i+8]
+10.3524012700*Close[i+9]
+4.5964239920*Close[i+10]
+0.5817527531*Close[i+11]
-0.9559211961*Close[i+12]
-0.2191111431*Close[i+13]
+1.8617342810*Close[i+14]
+4.0433304300*Close[i+15]
+5.2342243280*Close[i+16]
+4.8510862920*Close[i+17]
+2.9604408870*Close[i+18]
+0.1815496232*Close[i+19]
-2.5919387010*Close[i+20]
-4.5358834460*Close[i+21]
-5.1808556950*Close[i+22]
-4.5422535300*Close[i+23]
-3.0671459820*Close[i+24]
-1.4310126580*Close[i+25]
-0.2740437883*Close[i+26]
+0.0260722294*Close[i+27]
-0.5359717954*Close[i+28]
-1.6274916400*Close[i+29]
-2.7322958560*Close[i+30]
-3.3589596820*Close[i+31]
-3.2216514550*Close[i+32]
-2.3326257940*Close[i+33]
-0.9760510577*Close[i+34]
+0.4132650195*Close[i+35]
+1.4202166770*Close[i+36]
+1.7969987350*Close[i+37]
+1.5412722800*Close[i+38]
+0.8771442423*Close[i+39]
+0.1561848839*Close[i+40]
-0.2797065802*Close[i+41]
-0.2245901578*Close[i+42]
+0.3278853523*Close[i+43]
+1.1887841480*Close[i+44]
+2.0577410750*Close[i+45]
+2.6270409820*Close[i+46]
+2.6973742340*Close[i+47]
+2.2289941280*Close[i+48]
+1.3536792430*Close[i+49]
+0.3089253193*Close[i+50]
-0.6386689841*Close[i+51]
-1.2766707670*Close[i+52]
-1.5136918450*Close[i+53]
-1.3775160780*Close[i+54]
-1.6156173970*Close[i+55]);
i--;
}
return(0);
}
//+------------------------------------------------------------------+
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