AMA_SLOPE
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This tool is designed to analyze market price movements by calculating and visualizing the "slope" or the rate of change in a specialized moving average. Instead of simply showing you the current price trend, it focuses on how much that trend is shifting over time.
Core Logic Overview
The indicator operates by analyzing the relationship between recent price activity and historical trends. It uses a sophisticated mathematical approach to distinguish between genuine market momentum and minor "noise" (random, insignificant price fluctuations).
How It Works
- Trend Smoothing: The script utilizes a modified version of an Adaptive Moving Average (AMA). Unlike standard moving averages that treat all price data equally, this logic adapts to the current market conditions.
- Noise Filtering: The tool calculates the "Signal-to-Noise" ratio. It looks at the difference between the current price and a past price point, then compares that to the volatility (the total movement) over a specific period. If the market is moving erratically without a clear direction, the indicator recognizes this as noise.
- Adaptability: By comparing a "fast" timeframe with a "slow" timeframe, the tool calculates an adjustment factor. This allows the indicator to become more responsive during periods of high volatility and smoother during periods of stability.
- Slope Calculation: The final output displayed on your chart is not the price itself, but the difference between the current adaptive value and its previous value.
What It Tells You
By highlighting the slope, this indicator helps you see the "velocity" of a trend. A rising line suggests that the upward momentum is accelerating, while a falling line suggests a deceleration or a potential shift in direction. It effectively filters out the "jitter" of the market to provide a cleaner view of the underlying price trajectory.
//+------------------------------------------------------------------+
//| AMA SLOPE.mq4 |
//| Kalenzo |
//| bartlomiej.gorski@gmail.com |
//| I used the idea of P.Kauffman and code from KAMA |
//| made by © 2004, by konKop,wellx |
//+------------------------------------------------------------------+
#property copyright "Kalenzo"
#property link "bartlomiej.gorski@gmail.com"
#property indicator_separate_window
#property indicator_buffers 1
#property indicator_color1 SaddleBrown
//---- input parameters
extern int periodAMA=9;
extern int nfast=2;
extern int nslow=30;
extern double G=2.0;
//---- buffers
double kAMAbuffer[];
//+------------------------------------------------------------------+
int cbars=0, prevbars=0, prevtime=0;
double slowSC,fastSC;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- indicators
SetIndexStyle(0,DRAW_LINE,0,1);
SetIndexBuffer(0,kAMAbuffer);
IndicatorDigits(4);
IndicatorShortName("AMA SLOPE");
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
int i,pos=0;
double noise=0.000000001,AMA,AMA0,signal,ER;
double dSC,ERSC,SSC,ddK;
if (prevbars==Bars) return(0);
slowSC=(2.0 /(nslow+1));
fastSC=(2.0 /(nfast+1));
cbars=IndicatorCounted();
if (Bars<=(periodAMA+2)) return(0);
if (cbars<0) return(-1);
if (cbars>0) cbars--;
pos=Bars-periodAMA-2;
AMA0=Close[pos+1];
while (pos>=0)
{
if(pos==Bars-periodAMA-2) AMA0=Close[pos+1];
signal=MathAbs(Close[pos]-Close[pos+periodAMA]);
noise=0.000000001;
for(i=0;i<periodAMA;i++)
{
noise=noise+MathAbs(Close[pos+i]-Close[pos+i+1]);
}
ER =signal/noise;
dSC=(fastSC-slowSC);
ERSC=ER*dSC;
SSC=ERSC+slowSC;
AMA=AMA0+(MathPow(SSC,G)*(Close[pos]-AMA0));
ddK=(AMA-AMA0);
kAMAbuffer[pos]=ddK;
AMA0=AMA;
pos--;
}
//----
prevbars=Bars;
return(0);
}
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