Akuma99 Storm Clouds v0-3
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The Akuma99 Stormy Weather indicator is a comprehensive technical analysis tool designed to help traders visualize market volatility, identify key price levels, and detect periods of price compression. It uses a "weather" metaphor to describe market conditions, helping users distinguish between stable trading environments and high-risk "stormy" zones.
Core Logic and Functionality
1. Volatility and Squeeze Detection At the heart of the script is a logic system that identifies "Squeezes." It compares two different types of moving averages and bands:
- Keltner Channels: These are used to measure the market's normal range based on the average true range (volatility).
- Bollinger Bands: These measure volatility based on standard deviation.
When these two indicators overlap significantly—specifically when the Bollinger Bands contract inside the Keltner Channels—the script identifies a "Squeeze." This represents a period of low volatility where the market is consolidating energy before a potential breakout.
2. Barrier and Cloud Identification Once a squeeze is detected, the script establishes "Barriers." It calculates these levels based on the high and low prices of the preceding candles relative to the current volatility. These barriers form the basis for several visual elements:
- Storm Clouds & Dark Clouds: These are displayed as histograms. They indicate the presence of a squeeze and help highlight areas where price action is being restricted or "compressed."
- Silverlinings (Support & Resistance): The script identifies these as primary horizontal boundaries. They represent the "ceiling" (resistance) and "floor" (support) of the current market structure.
3. Ozone and Humidity Dynamics To provide a more nuanced view of price action, the indicator calculates "Ozone" levels and "Cloud Thickness."
- Thickness: This tells the trader how wide the gap is between support and resistance. A thinner "cloud" suggests a tighter consolidation, while a thicker one indicates a wider range.
- Humidity: This is a configurable parameter that allows traders to visualize specific buffer zones around the clouds, helping to define the "atmosphere" of the trade.
4. Fractal Tracking The script also monitors historical price extremes using Fractals. It tracks the most recent high and low points to calculate potential profit targets (Take Profit) and stop-loss levels. This helps traders understand where price might "revert" or stall based on previous peak and valley data.
User Interface Experience
The indicator provides a live "Weather Report" directly on the chart. This text readout summarizes the current market status by displaying:
- The exact price of the Cloud Support and Cloud Resistance.
- The calculated Cloud Thickness.
- Current environmental parameters like Humidity.
Summary for the Trader
Essentially, this script transforms complex volatility math into a visual landscape. Instead of looking at multiple confusing lines, you can see "Clouds" forming when the market is getting ready to move. When the "Storm Clouds" appear, it signals that volatility is low and a breakout may be imminent, allowing you to identify the best entry points by observing where those clouds are most compressed.
/*
*********************************************************************
Akuma99 Stormy Weather
Copyright © 2005 Akuma99
http://akuma99.blogspot.com
For help on this indicator, tutorials and information
visit http://akuma99.blogspot.com/
*********************************************************************
*/
#property link "http://akuma99.blogspot.com/"
#property copyright "© 2005 Akuma99 (http://akuma99.blogspot.com)"
#property indicator_chart_window
#property indicator_buffers 8
#property indicator_color1 Lavender
#property indicator_color2 Lavender
#property indicator_color3 CornflowerBlue
#property indicator_color4 CornflowerBlue
#property indicator_color5 Green
#property indicator_color6 Crimson
#property indicator_color7 Navy
#property indicator_color8 Navy
extern int maxBars = 2000;
extern int spread=4;
extern int humidity=55;
double bb=12.0;
double bbDeviation=2.0;
double kelt=8.0;
double keltFactor=1.0;
double buffer=1.0;
double upperBarrier[];
double lowerBarrier[];
double clouds1[];
double clouds2[];
double silverlining1[];
double silverlining2[];
double ozone1[];
double ozone2[];
double darkclouds1[];
double darkclouds2[];
int history[];
int tracking;
double val1[];
double val2[];
int holder=0;
int trueRangePeriod = 9;
int count=0;
int init() {
ArrayResize(history,maxBars);
ArrayInitialize(history,3);
IndicatorBuffers(8);
SetIndexStyle(0,DRAW_HISTOGRAM, 2, 1, indicator_color1);
SetIndexBuffer(0, clouds1);
SetIndexLabel(0,"Storm clouds");
SetIndexStyle(1,DRAW_HISTOGRAM, 2, 1, indicator_color2);
SetIndexBuffer(1, clouds2);
SetIndexLabel(1,"Storm clouds");
SetIndexStyle(2,DRAW_LINE,0,1,indicator_color3);
SetIndexBuffer(2, silverlining1);
SetIndexLabel(2,"resistance");
SetIndexStyle(3,DRAW_LINE,0,1,indicator_color4);
SetIndexBuffer(3, silverlining2);
SetIndexLabel(3,"support");
SetIndexStyle(4, DRAW_LINE,2,1,indicator_color5);
SetIndexBuffer(4, ozone1);
SetIndexLabel(2,"Ozone 1");
SetIndexStyle(5, DRAW_LINE,2,1,indicator_color6);
SetIndexBuffer(5, ozone2);
SetIndexLabel(2,"Ozone 2");
SetIndexStyle(6,DRAW_HISTOGRAM, 2, 1, indicator_color7);
SetIndexBuffer(6, darkclouds1);
SetIndexLabel(6,"Storm clouds");
SetIndexStyle(7,DRAW_HISTOGRAM, 2, 1, indicator_color8);
SetIndexBuffer(7, darkclouds2);
SetIndexLabel(7,"Storm clouds");
return(0);
}
int deinit() {
double upperBarrier[];
double lowerBarrier[];
double clouds1[];
double clouds2[];
double silverlining1[];
double silverlining2[];
double ozone1[];
double ozone2[];
double darkclouds1[];
double darkclouds2[];
}
int start() {
int i;
double sl;
ArrayResize(upperBarrier,maxBars);
ArrayResize(lowerBarrier,maxBars);
ArrayResize(val1,maxBars);
ArrayResize(val2,maxBars);
int indicatorLength = maxBars;
for (i=indicatorLength; i>=0; i--) {
double trueRange = iATR(NULL, 0, trueRangePeriod, i);
bool squeezeSignal = getSignal(i+1);
double c1=0, c2=0;
if (iFractals(NULL, 0, MODE_UPPER, i) != 0) {
val1[i] = iFractals(NULL, 0, MODE_UPPER, i);
} else {
val1[i] = val1[i+1];
}
if (iFractals(NULL, 0, MODE_LOWER, i) != 0) {
val2[i] = iFractals(NULL, 0, MODE_LOWER, i);
} else {
val2[i] = val2[i+1];
}
if (squeezeSignal) {
count++;
if (holder == 0 || i > holder-1) {
upperBarrier[i]=High[i+1]+trueRange;
lowerBarrier[i]=Low[i+1]-trueRange;
holder = i;
} else {
upperBarrier[i]=upperBarrier[holder];
lowerBarrier[i]=lowerBarrier[holder];
}
} else {
upperBarrier[i] = upperBarrier[i+1];
lowerBarrier[i] = lowerBarrier[i+1];
holder = 0;
count = 0;
}
sl = iATR(NULL,0,4,i);
clearBuffers(i);
clouds1[i] = upperBarrier[i+8]+sl+spread*Point;
clouds2[i] = lowerBarrier[i+8]-sl;
silverlining1[i] = clouds1[i];//+sl+spread*Point;
silverlining2[i] = clouds2[i];//-sl;
ozone1[i] = clouds1[i]+humidity*Point;
ozone2[i] = clouds2[i]-humidity*Point;
if (holder != 0) {
darkclouds1[i] = clouds1[i];
darkclouds2[i] = clouds2[i];
}
double tpLong = val1[i]-5*Point;
double tpShort = val2[i]+5*Point;
double slLong = val2[i]-5*Point;
double slShort = val1[i]+5*Point;
Comment ("Stormy Indicator v0.3 created by Akuma99 (http://akuma99.blogspot.com)\n\nWEATHER REPORT: \nCloud support: ", clouds2[i], " | Cloud resistance: ", silverlining1[i], " | Cloud Thickness: ", MathFloor((silverlining1[i] - silverlining2[i])/Point), "\nHumidity: 55, 89 or 144");
}
return(0);
}
void clearBuffers(int i) {
darkclouds1[i] = NULL;
darkclouds2[i] = NULL;
ozone1[i] = NULL;
ozone2[i] = NULL;
clouds1[i] = NULL;
clouds2[i] = NULL;
silverlining1[i] = NULL;
silverlining2[i] = NULL;
}
bool getSignal(int shift) {
double basePrice, avg, upperKelt, lowerBB, upperBB, lowerKelt;
basePrice = iMA(NULL, 0, kelt, 0, MODE_SMA, PRICE_TYPICAL, shift);
avg = findAvg(kelt, shift);
lowerKelt = (basePrice-avg)-(buffer*Point);
upperKelt = (basePrice+avg)+(buffer*Point);
lowerBB = iBands(NULL,0,bb,bbDeviation,0,PRICE_CLOSE,MODE_LOWER,shift);
upperBB = iBands(NULL,0,bb,bbDeviation,0,PRICE_CLOSE,MODE_UPPER,shift);
if (lowerBB >= lowerKelt && upperBB <= upperKelt) {
return (true);
} else {
return (false);
}
}
double findAvg(int period, int shift) {
double sum=0;
int x;
for (x=shift;x<(shift+period);x++) {
sum += High[x]-Low[x];
}
sum = sum/period;
return (sum*keltFactor);
}
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