ADX FiboMA

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Author: Copyright � 2005
ADX FiboMA

This script is a technical analysis tool designed for the MetaTrader platform to help traders visualize market trends and potential price levels. It combines three distinct financial concepts—Moving Averages, Fibonacci sequences, and ADX (Average Directional Index) momentum—into a single visual aid on a price chart.

Core Logic Overview

The script functions by processing current market data through several layers of calculation to determine "smart" moving averages and dynamic support/resistance zones.

1. Dynamic Trend Smoothing (FiboMA & ADX) Instead of using a standard moving average, which can be slow to react or produce "worse" signals during choppy markets, this script uses a hybrid approach:

  • Momentum Filtering: It utilizes the ADX (a common indicator for measuring trend strength) to determine how volatile or strong the current market is.
  • Smart Weighting: The script looks at the highest and lowest values of the ADX over a specific period. It uses this information to calculate a "weighting constant." If the market is moving strongly, the average adjusts to follow the price more closely; if the market is stagnant, it smooths out the noise.
  • Fibonacci Integration: The smoothing factor itself is based on Fibonacci levels (like 23.6%, 50%, or 61.8%), which are mathematical proportions often found in nature and financial markets.

2. Oscillators and Standard Comparisons To provide a complete picture, the script calculates secondary lines:

  • Oscillator Line: A faster version of the Fibonacci Moving Average helps identify shorter-term momentum shifts.
  • Standard EMA: It plots a standard Exponential Moving Average (EMA) alongside the custom "Smart" average, allowing traders to see the difference between raw price smoothing and the script’s filtered logic.

3. Dynamic Support and Resistance Bands (The "B" Lines) The most unique feature of this script is how it projects potential price targets or boundaries based on the current trend:

  • Trend Detection: The script checks if the current market price is above or below the primary Fibonacci Moving Average.
  • Projection Logic: Once it identifies the trend, it projects four distinct "B" lines (B1 through B4).
    • If the price is above the average, these lines project upward as potential targets.
    • If the price is below the average, these lines project downward as potential support levels.
  • Fibonacci Expansion: These four lines are not random; they are calculated using a "Golden Ratio" power formula. This creates a series of expansion levels that widen or narrow based on the strength of the trend and the chosen Fibonacci period.

Summary for the User

In plain terms, this tool tries to answer two questions simultaneously:

  1. Where is the trend going? It filters out "fake" price movements by using ADX momentum to decide how much weight to give to recent price changes.
  2. Where will it stop or go next? By projecting Fibonacci-based bands (B1–B4) relative to the smoothed average, it provides a visual map of where the price might find resistance or support in the coming periods.
Indicators Used
Movement directional indexMoving average indicatorMoving average indicator
Miscellaneous
Implements a curve of type %1
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ADX FiboMA 
//+------------------------------------------------------------------+
//|                                                 ADX FiboMA 2.mq4 |
//|                      Copyright © 2005, MetaQuotes Software Corp. |
//|                                        http://www.metaquotes.net |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2005"
#property link      ""

//#property indicator_separate_window
#property indicator_chart_window

#property indicator_buffers 7
#property indicator_color1 Magenta
#property indicator_color2 Green
#property indicator_color3 Yellow
#property indicator_color4 Gray
#property indicator_color5 Red
#property indicator_color6 Gray
#property indicator_color7 Gray
#property indicator_color8 Gray
//---- input parameters
extern int       MAPeriod;
extern int       Lots;
extern int       TakeProfit;extern int       StopLoss;
extern int       TrailingStop;
extern int   FiboMA;//0=>9.0170,1=>14.5898,2=>23.6068,3=>38.1966,4=>50.0000,5=>61.8034,Null
extern int   GoldenRatioPwr;//default=8
extern int   ADXPr;//default = 50 (1-100)
extern int   ADXtype;//0=ADX, 1=ADXR
//---- buffers
double FIMA[];
double FIMA_Osc[];
double StdFIMA[];
double AdjFIMA[];
double B1[];
double B2[];
double B3[];
double B4[];
double ADX[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function                         |
//+------------------------------------------------------------------+
int init()
  {
//---- indicators
   IndicatorBuffers(8);
   SetIndexStyle(0,DRAW_LINE, STYLE_DOT);
   SetIndexBuffer(0,FIMA);
   SetIndexLabel(0,"FIMA");
 
   SetIndexStyle(1,DRAW_LINE);
   SetIndexBuffer(1,FIMA_Osc);
   SetIndexLabel(1,"FIMA_Osc");
 
   SetIndexStyle(2,DRAW_LINE);
   SetIndexBuffer(2,StdFIMA);
   SetIndexLabel(2,"StdFIMA");
 
   SetIndexStyle(3,DRAW_LINE);
   SetIndexBuffer(3,B1);
   SetIndexLabel(3,"B1");
 
   SetIndexStyle(4,DRAW_LINE);
   SetIndexBuffer(4,B2);
   SetIndexLabel(4,"B2");
 
   SetIndexStyle(5,DRAW_LINE);
   SetIndexBuffer(5,B3);
   SetIndexLabel(5,"B3");
 
   SetIndexStyle(6,DRAW_LINE);
   SetIndexBuffer(6,B4);
   SetIndexLabel(6,"B4");
   SetIndexStyle(7,DRAW_LINE);
   SetIndexBuffer(7,ADX);
//----
   return(0);
  }
//+------------------------------------------------------------------+
//| Custor indicator deinitialization function                       |
//+------------------------------------------------------------------+
int deinit()
  {
//---- 
   
//----
   return(0);
  }
//+------------------------------------------------------------------+
//| Custom indicator iteration function                              |
//+------------------------------------------------------------------+
int start()
  {
   int      i,p;
   int      counted_bars = IndicatorCounted();
//---- 
   
   /*
   double   TR;
   double   TH;
   double   TL;
   double   PlusDM, PlusDI, MinusDM, MinusDI, DIDif, DISum;
   */
   double   FMA;
   double   ADXFinal;
   double   ADXRCustom;
   double   EmaIndex, Diff, MyConst;
   double   Hhv, Llv;

   double   GoldenRatio, GoldVal,FBase,F0,F1,F2,F3,F4,F5,F6,F7,F8,F9,F10,F11,F12,F13;
   

   //test default vals
   FiboMA = 2;
   GoldenRatio = 1;//=8;
   ADXPr = 23;//50;
   ADXtype = 0;
//
   
  if ( ADXPr<1 || ADXPr >100) {ADXPr =50;} //default = 50 (1-100)
  
  //calc FMA to use
  switch (FiboMA)
  {
      case 0:  FMA = 9.0170; break;
      case 1:  FMA = 14.5898; break;
      case 2:  FMA = 23.6068; break;
      case 3:  FMA = 38.1966; break;
      case 4:  FMA = 50.0000; break;
      case 5:  FMA = 61.8034; break;
      default: FMA = 23.6068; break;
  }

  //Calculate & Plot Tushar Chande style Fibonacci Based Moving Average Using Wilders ADX}
   i=Bars;
   //if (counted_bars>=i) {i=Bars-counted_bars-1;}
   while (i>=0)
   {
      
      ADXFinal = iADX(NULL,0,ADXPr,PRICE_CLOSE,MODE_MAIN,i);
      ADXRCustom = ( ADXFinal + iADX(NULL,0,ADXPr,PRICE_CLOSE,MODE_MAIN,(i+ADXPr-1)) )/2;
      if ( ADXtype == 0 )  { ADX[i] = ADXFinal; }  else { ADX[i] = ADXRCustom;}
      if ( FMA>0) { EmaIndex = (2/(1+FMA)); } else {EmaIndex = 0.20;}

      //get  Hhv(_ADX, ADXPr) and Llv(_ADX, ADXPr) - substituted for VT Hhv and Llv functions
      Hhv = ADX[i];
      Llv = ADX[i];
      for(p=i; p < (i+ADXPr) ; p++)
      {
         if (ADX[p]>Hhv) {Hhv = ADX[p];}
         if (ADX[p]<Llv) {Llv = ADX[p];}
      }
      Diff = Hhv - Llv;      // Diff = Hhv(_ADX, ADXPr) - Llv(_ADX, ADXPr);
      if (Diff > 0) {MyConst = (ADX[i] - Llv)/Diff;} else {MyConst = EmaIndex;}
      if ( MyConst > EmaIndex) {MyConst = EmaIndex;}
      //if (IndicatorCounted() < ADXPr+(ADXPr*1.5))
      if (Bars < ADXPr+(ADXPr*1.5))
      { 
          FIMA[i] = Close[i];
      }
      else
      {
          //sub for VT expression, subst simple average for 2 period MA
          //FIMA[i]  = MOV( (((1 - MyConst) * Ref(FIMA,-1)) + (MyConst * Close)),2,s));
          FIMA[i] = ( (1-MyConst)*FIMA[i+1]+MyConst*Close[i] + (1-MyConst)*FIMA[i+2]+MyConst*Close[i+1] )/2;     
      }
      FIMA_Osc[i] = iMAOnArray(FIMA, 0, FMA*0.236068 , 0,MODE_LWMA,i);
      StdFIMA[i] = iMA(NULL,0,FMA,0,MODE_EMA,PRICE_CLOSE,i);
      
      //{Control the distance from Price to F Lines}
      if (GoldenRatioPwr <=0) {GoldenRatioPwr=8;}//default=8 
      GoldenRatio = MathPow(1.618034 ,GoldenRatioPwr );
      GoldVal = 1.618034;
      FBase = 0.1919/2;
      F0 = FBase * GoldenRatio;

      F1 = F0*GoldVal;F2 = F1*GoldVal;F3 = F2*GoldVal;F4 = F3*GoldVal;
      F5 = F4*GoldVal;F6 = F5*GoldVal;F7 = F6*GoldVal;F8 = F7*GoldVal;
      F9 = F8*GoldVal;F10 = F9*GoldVal;F11 = F10*GoldVal;F12 = F11*GoldVal;
      F13 = F12*GoldVal;

      if (Close[i]>=FIMA[i])
      {
         B1[i] = FIMA[i]+(FIMA[i]*(FMA*(F1/100000)));
         B2[i] = FIMA[i]+(FIMA[i]*(FMA*(F2/100000)));
         B3[i] = FIMA[i]+(FIMA[i]*(FMA*(F3/100000)));
         B4[i] = FIMA[i]+(FIMA[i]*(FMA*(F4/100000)));
      }
      else
      {
         B1[i] = FIMA[i]-(FIMA[i]*(FMA*(F1/100000)));
         B2[i] = FIMA[i]-(FIMA[i]*(FMA*(F2/100000)));
         B3[i] = FIMA[i]-(FIMA[i]*(FMA*(F3/100000)));
         B4[i] = FIMA[i]-(FIMA[i]*(FMA*(F4/100000)));
      }
      i--;
   }
   
//----
   return(0);
  }

//+------------------------------------------------------------------+

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