Author: Vladimir Kravchuk
For a deeper dive into trading strategies, check out "New Adaptive Method of Following the Tendency and Market Cycles".
The Range Bound Channel Index (RBCI) is a valuable tool for traders, calculated using a channel filter (CF) to help you identify market trends.
This channel filter serves two key purposes: it filters out low-frequency trends created by long-term market components while also eliminating high-frequency noise from short-term fluctuations.
The RBCI is calculated using a straightforward formula:
RBCI(bar) = FATL(bar) – SATL(bar)
In this formula:
When the RBCI reaches a local maximum, it indicates that prices are approaching the upper boundary of the trading channel. Conversely, when it hits a local minimum, prices are nearing the lower boundary. A key feature of the RBCI is that it's a quasi-stationary process, oscillating within a defined frequency range.
RBCI filter coefficients
This indicator leverages the SmoothAlgorithms.mqh and IndicatorsAlgorithms.mqh classes. If you're interested in how these classes work, be sure to read the article "Averaging Price Series for Intermediate Calculations Without Using Additional Buffers".
RBCI indicator
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