VertexFX Client Side Indicator- RBCI

The RBCI (Range Bound Channel Index) is a VertexFX client side VTL indicator based upon the Fast Adaptive Trend line (FATL) and Slow Adaptive Trend line (SATL) indicators, and are useful for determining market turning points.
In Digital Signal Processing theory, prices are considered to be based of two components - the signal component - which is the main trend, and the noise component - which is the whipsaws and sideways movements. The RBCI indicator attempts to eliminate the noise component and refine the main trend component. The close of each candle is multiplied by a filter smoothing co-efficient, and the sum of this value is calculated over the recent 55 bars to derive the RBCI indicator value. These smoothing co-efficient are weighted based on digital filter probabilities.
RBCI requires at least 55 bars since it is based upon FATL and SATL which require 55 bars. It is calculated by subtracting SATL from FATL. Prices approach the extreme range when RBCI reaches its local maximum (or minimum) price. This implies that RBCI is an excellent indicator that can be used to determine the extreme ranges, and the levels from which the markets can turn. It is a zero based unbounded oscillator. A rising value of RBCI indicates an uptrend, whereas a falling value indicators a downtrend.

BUY - Place BUY position when RBCI is at lower extreme below zero, and has turned upwards.
SELL – Place SELL position when RBCI is at upper extreme above zero, and has turned downwards.