AscTrend2
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This script is a technical analysis tool designed for the MetaTrader 4 platform. It functions by analyzing price action and volatility to identify potential entry points for trading. Rather than relying on a single simple indicator, it combines several layers of logic—including moving averages, price range calculations, and specific "trend" detection—to determine where the market might be turning or stabilizing.
Core Logic Overview
The script works by scanning historical price data and calculating three primary components to decide when to display a signal:
1. Volatility and Range Analysis The tool constantly monitors the "Range"—the difference between the highest and lowest prices over a recent period. It calculates an average volatility based on these extremes. This helps the script understand how much the market is currently "moving" versus how "quiet" it is, allowing it to set dynamic boundaries for its signals.
2. Trend Comparison (Dual Moving Averages) The logic compares two different types of averages:
- A short-term average (looking at the most recent 9 bars).
- A longer-term average (which scales based on a user-defined "Risk" parameter). By comparing these two, the script identifies the current momentum. If the short-term average crosses above the long-term average, it suggests upward pressure; if it falls below, it suggests downward pressure.
3. Pivot Point and Extreme Identification The script looks for specific price "peaks" and "valleys." It evaluates whether the current price is significantly higher or lower than the recent average range. It performs a series of checks to see if the price has reached an extreme point relative to the surrounding bars.
Signal Generation Logic
To prevent false signals, the script uses several "filters" before placing a mark on the chart:
- The "True Count" Check: The script doesn't just look at one bar. It performs a localized check on a sequence of bars to ensure that a trend change is sustained and not just a momentary flicker in price.
- Price Thresholds: It calculates specific price levels (support and resistance zones) based on the "1.618" Fibonacci ratio and the calculated volatility range.
- Confirmation: A signal (represented by an arrow on the chart) is only triggered when:
- The trend direction matches the price position (e.g., the short-term average is above the long-term average while the price is near a lower boundary).
- The price actually touches or interacts with these calculated "extreme" zones.
Summary for the User
In plain terms, this script acts as a sophisticated "support and resistance" hunter. It calculates how much the market typically moves, identifies when that movement becomes extreme relative to the current trend, and places an arrow on your chart when the price hits a statistically significant level that aligns with the prevailing momentum.
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AscTrend2
//+------------------------------------------------------------------+
//| AscTrend2.mq4 |
//| Copyright © 2006, Nick Bilak |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2006, Nick Bilak"
//---- indicator settings
#property indicator_chart_window
#property indicator_buffers 2
#property indicator_color1 Aqua
#property indicator_color2 Magenta
//---- indicator parameters
extern int Risk=5;
extern double MONYRISK=2.0;
//---- indicator buffers
double e1[];
double e2[];
int i,value2=1,Counter,DCounter,TrueCount=0,MRO1=0,MRO2=0,MRO3=0,MRO4=0;
double value3=18,value4=0,value5=0,value6=0,value7=0,value8=0,value9=0,
value10=10,value11=10000,value12=0,value13=0,value14=0,value19=0,
value4_1=0,value4_2=0,value9_1=0,value10_1=0,value11_1=0,value12_1=0,
Range=0,AvgRange=0,AvgRange_1=0,AvgRange_2=0,
val1=0,val2=0,NumBars=0;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- drawing settings
SetIndexStyle(0,DRAW_ARROW);
SetIndexStyle(1,DRAW_ARROW);
SetIndexArrow(0,159);
SetIndexArrow(1,159);
SetIndexEmptyValue(0,0);
SetIndexEmptyValue(1,0);
if(
!SetIndexBuffer(0,e1) ||
!SetIndexBuffer(1,e2)
)
Print("cannot set indicator buffers!");
//---- name for DataWindow and indicator subwindow label
IndicatorShortName("AscT2("+Risk+")");
//---- initialization done
return(0);
}
int start() {
int counted_bars=IndicatorCounted();
if(counted_bars<0) return(-1);
if(counted_bars>0) counted_bars--;
int limit=Bars-20-counted_bars;
double spread=Ask-Bid;
for(i=limit; i>=0; i--) {
Range=0;
AvgRange=0;
for (Counter=i; Counter<=i+9; Counter++) {
AvgRange=AvgRange+MathAbs(spread+High[Counter]-Low[Counter]);
}
Range=AvgRange/10.0;
if (i==Bars-20) {
value2=1; value3=18; value10=10000; value10_1=0;
value19=MONYRISK*Range*Point;
value2=Risk;
value3=18+3*value2;
value9=0;
}
Counter=i;
AvgRange=0;
for (Counter=i; Counter<=i+9-1; Counter++) {
AvgRange=AvgRange+Close[Counter];
}
value11=AvgRange/9.0;
// -----
//value12=UserFunction("AverageClose",value3,i);
Counter=i;
AvgRange=0;
for (Counter=i; Counter<=i+value3-1; Counter++) {
AvgRange=AvgRange+Close[Counter];
}
value12=AvgRange/value3;
// -----
value13=Range;
// -----
//value4=UserFunction("JESSD",High[i],Low[i],High[i+value2],Low[i+value2],Close[i+value2]);
AvgRange=(spread+High[i]+Low[i])/2.0;
if (Close[i+value2]<AvgRange) {
value4=2*AvgRange-Low[i+value2];
} else {
value4=2*AvgRange-spread+High[i+value2];
}
// -----
Counter=i;
TrueCount=0;
while (Counter<i+2 && TrueCount<1) {
//value4=UserFunction("JESSD",High[Counter],Low[Counter],High[Counter+value2],Low[Counter+value2],Close[Counter+value2]);
AvgRange=(spread+High[Counter]+Low[Counter])/2.0;
if (Close[Counter+value2]<AvgRange) {
value4=2*AvgRange-Low[Counter+value2];
} else {
value4=2*AvgRange-spread+High[Counter+value2];
}
value4=NormalizeDouble(value4,2);
//value4_1=UserFunction("JESSD",High[Counter+1],Low[Counter+1],High[Counter+value2],Low[Counter+value2],Close[Counter+value2]);
AvgRange_1=(spread+High[Counter+1]+Low[Counter+1])/2.0;
if (Close[Counter+1+value2]<AvgRange_1) {
value4_1=2*AvgRange_1-Low[Counter+1+value2];
} else {
value4_1=2*AvgRange_1-spread+High[Counter+1+value2];
}
value4_1=NormalizeDouble(value4_1,2);
//value4_2=UserFunction("JESSD",High[Counter+2],Low[Counter+2],High[Counter+value2],Low[Counter+value2],Close[Counter+value2]);
AvgRange_2=(spread+High[Counter+2]+Low[Counter+2])/2.0;
if (Close[Counter+2+value2]<AvgRange_2) {
value4_2=2*AvgRange_2-Low[Counter+2+value2];
} else {
value4_2=2*AvgRange_2-spread+High[Counter+2+value2];
}
value4_2=NormalizeDouble(value4_2,2);
if (value4>value4_1 && value4_1<value4_2) TrueCount=TrueCount+1;
Counter=Counter+1;
}
if (TrueCount>=1) MRO1=Counter-i-1; else MRO1=-1;
// -----
Counter=i;
TrueCount=0;
while (Counter<i+2 && TrueCount<1) {
//value4=UserFunction("JESSD",High[Counter],Low[Counter],High[Counter+value2],Low[Counter+value2],Close[Counter+value2]);
AvgRange=(spread+High[Counter]+Low[Counter])/2.0;
if (Close[Counter+value2]<AvgRange) {
value4=2*AvgRange-Low[Counter+value2];
} else {
value4=2*AvgRange-spread+High[Counter+value2];
}
value4=NormalizeDouble(value4,2);
//value4_1=UserFunction("JESSD",High[Counter+1],Low[Counter+1],High[Counter+value2],Low[Counter+value2],Close[Counter+value2]);
AvgRange_1=(spread+High[Counter+1]+Low[Counter+1])/2.0;
if (Close[Counter+1+value2]<AvgRange_1) {
value4_1=2*AvgRange_1-Low[Counter+1+value2];
} else {
value4_1=2*AvgRange_1-spread+High[Counter+1+value2];
}
value4_1=NormalizeDouble(value4_1,2);
//value4_2=UserFunction("JESSD",High[Counter+2],Low[Counter+2],High[Counter+value2],Low[Counter+value2],Close[Counter+value2]);
AvgRange_2=(spread+High[Counter+2]+Low[Counter+2])/2.0;
if (Close[Counter+2+value2]<AvgRange_2) {
value4_2=2*AvgRange_2-Low[Counter+2+value2];
} else {
value4_2=2*AvgRange_2-spread+High[Counter+2+value2];
}
value4_2=NormalizeDouble(value4_2,2);
if (value4<value4_1 && value4_1>value4_2) TrueCount=TrueCount+1;
Counter=Counter+1;
}
if (TrueCount>=1) MRO2=Counter-i-1; else MRO2=-1;
// -----
//value4_1=UserFunction("JESSD",High[i+1],Low[i+1],High[i+1+value2],Low[i+1+value2],Close[i+1+value2]);
AvgRange_1=(spread+High[i+1]+Low[i+1])/2.0;
if (Close[i+1+value2]<AvgRange_1) {
value4_1=2*AvgRange_1-Low[i+1+value2];
} else {
value4_1=2*AvgRange_1-spread+High[i+1+value2];
}
// -----
if (MRO1>-1 && Low[i+1]>value4_1) value5=value4_1-value13;
if (MRO2>-1 && spread+High[i+1]<value4_1) value6=value4_1+value13;
// -----
//value11_1=UserFunction("AverageClose",9,i+1);
Counter=i;
AvgRange=0;
for (Counter=i+1; Counter<=i+1+9-1; Counter++) {
AvgRange=AvgRange+Close[Counter];
}
value11_1=AvgRange/9.0;
// -----
//value12_1=UserFunction("AverageClose",value3,i+1);
Counter=i;
AvgRange=0;
for (Counter=i+1; Counter<=i+1+value3-1; Counter++) {
AvgRange=AvgRange+Close[Counter];
}
value12_1=AvgRange/value3;
// -----
if (value11_1<value12_1 && value11>value12) {
//value5=UserFunction("TrueLow",i)-value13;
if (Close[i+1]<Low[i]) {
value5=Close[i+1]-value13;
} else {
value5=Low[i]-value13;
}
}
if (value11_1>value12_1 && value11<value12) {
//value5=UserFunction("TrueHigh",i)+value13;
if (Close[i+1]>spread+High[i]) {
value5=Close[i+1]+value13;
} else {
value5=spread+High[i]+value13;
}
}
// -----
if (MathAbs(Open[i]-Close[i+1])>=1.618*value13) {
if (value11>value12) value5=Low[i]-value13;
if (value11<value12) value14=spread+High[i]+value13;
}
// -----
//value7=UserFunction("BS105",Low[i],2.40,value13,value9);
if (Low[i]-2.40*value13<value9) {
value7=value9;
} else {
value7=Low[i]-2.40*value13;
}
// -----
//value8=UserFunction("SS105",High[i],2.40,value13,value10);
if (spread+High[i]+2.40*value13>value10) {
value8=value10;
} else {
value8=spread+High[i]+2.40*value13;
}
// -----
//value9=UserFunction("BS0",Low[i],60,value7,RISK,value19);
value9=value7;
// -----
//value10=UserFunction("SS0",High[i],60,value8,RISK,value19);
value10=value8;
// -----
if (Low[i]-value9>value19/Point) value9=Low[i]-(1.50+0.1*Risk)*value13;
if (value10-spread+High[i]>value19/Point) value10=spread+High[i]+(1.50+0.1*Risk)*value13;
if (value11>=value12 && value5>=value9) value9=value5;
if (value11<=value12 && value6<=value10) value10=value6;
if (value11<=value12 && value5<=value9) value9=value5;
if (value11>=value12 && value6>=value10) value10=value6;
// -----
Counter=i;
TrueCount=0;
while (Counter<i+2 && TrueCount<2) {
//value11=UserFunction("AverageClose",9,Counter);
DCounter=Counter;
AvgRange=0;
for (DCounter=Counter; DCounter<=Counter+9-1; DCounter++) {
AvgRange=AvgRange+Close[DCounter];
}
value11=AvgRange/9.0;
//value12=UserFunction("AverageClose",value3,Counter);
DCounter=Counter;
AvgRange=0;
for (DCounter=Counter; DCounter<=Counter+value3-1; DCounter++) {
AvgRange=AvgRange+Close[DCounter];
}
value12=AvgRange/value3;
if (value11>=value12) TrueCount=TrueCount+1;
Counter=Counter+1;
}
if (TrueCount>=2) MRO3=Counter-i-1; else MRO3=-1;
// -----
Counter=i;
TrueCount=0;
while (Counter<i+2 && TrueCount<2) {
//value11=UserFunction("AverageClose",9,Counter);
DCounter=Counter;
AvgRange=0;
for (DCounter=Counter; DCounter<=Counter+9-1; DCounter++) {
AvgRange=AvgRange+Close[DCounter];
}
value11=AvgRange/9.0;
//value12=UserFunction("AverageClose",value3,Counter);
DCounter=Counter;
AvgRange=0;
for (DCounter=Counter; DCounter<=Counter+value3-1; DCounter++) {
AvgRange=AvgRange+Close[DCounter];
}
value12=AvgRange/value3;
if (value11<=value12) TrueCount=TrueCount+1;
Counter=Counter+1;
}
if (TrueCount>=2) MRO4=Counter-i-1; else MRO4=-1;
// -----
if (MRO3>-1 && value9<=value9_1) value9=value9_1;
if (MRO4>-1 && value10>=value10_1) value10=value10_1;
// -----
//value11=UserFunction("AverageClose",9,i);
Counter=i;
AvgRange=0;
for (Counter=i; Counter<=i+9-1; Counter++) {
AvgRange=AvgRange+Close[Counter];
}
value11=AvgRange/9.0;
// -----
//value12=UserFunction("AverageClose",value3,i);
Counter=i;
AvgRange=0;
for (Counter=i; Counter<=i+value3-1; Counter++) {
AvgRange=AvgRange+Close[Counter];
}
value12=AvgRange/value3;
// -----
val1=0;
val2=0;
if (value9>0 && value11>=value12 && value9<=spread+High[i]) {
val1=value9;
}
if (value10>0 && value10<1000000000 && value11<=value12 && value10>=Low[i]) {
val2=value10;
}
// -----
value9_1=value9;
value10_1=value10;
e1[i]=val1; //SetIndexValue(i,val1);
e2[i]=val2; //SetIndexValue2(i,val2);
// -----
}
}
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