AwesomeOC
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This script functions as a visual momentum indicator designed to help traders identify the strength and direction of market trends by analyzing price movements over two different timeframes simultaneously.
Core Logic and Mechanics
The tool operates by calculating the difference between two moving averages: a "fast" average and a "slow" average. By comparing these two values, the script measures how quickly the current market price is reacting compared to its historical average.
1. Data Calculation The logic begins by taking two sets of data:
- A short-term window (8 periods) to capture immediate price action.
- A long-term window (34 periods) to represent the broader trend.
The script calculates the average price for both windows and subtracts the long-term average from the short-term average. The resulting value tells you whether the market is accelerating upward, slowing down, or pulling back.
2. Momentum Visualisation Rather than just providing a single line, the script organizes this data into a histogram (a series of vertical bars). It evaluates the current momentum value against the previous one to determine its direction:
- Upward Momentum: If the current calculation is higher than the previous one, the script identifies this as positive momentum.
- Downward Momentum: If the current calculation is lower than the previous one, it identifies this as negative momentum.
3. Visual Differentiation To make these signals easy to read at a glance, the script separates the data into two distinct visual categories:
- Positive Bars (Bisque): These appear when the momentum is increasing or remains in a bullish state, helping traders see where buying pressure might be dominant.
- Negative Bars (Tomato): These appear when the momentum is decreasing or remains in a bearish state, highlighting areas where selling pressure may be taking over.
Summary for Traders
Essentially, this tool filters out "market noise" by smoothing out price fluctuations. It allows you to see whether the current price trend is gaining strength or losing steam, providing a clear visual cue of market sentiment through contrasting colors and bar heights.
//+------------------------------------------------------------------+
//| Awesome.mq4 |
//| Copyright 2005-2014, MetaQuotes Software Corp. |
//| http://www.mql4.com |
//+------------------------------------------------------------------+
#property copyright "2005-2014, MetaQuotes Software Corp."
#property link "http://www.mql4.com"
#property description "Awesome Oscillator"
#property strict
//--- indicator settings
#property indicator_separate_window
#property indicator_buffers 3
#property indicator_color1 Black
#property indicator_color2 Bisque
#property indicator_color3 Tomato
//--- buffers
double ExtAOBuffer[];
double ExtUpBuffer[];
double ExtDnBuffer[];
//---
#define PERIOD_FAST 8
#define PERIOD_SLOW 34
//--- bars minimum for calculation
#define DATA_LIMIT 34
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
void OnInit(void)
{
//--- drawing settings
SetIndexStyle(0,DRAW_NONE);
SetIndexStyle(1,DRAW_HISTOGRAM,STYLE_SOLID,4,Bisque);
SetIndexStyle(2,DRAW_HISTOGRAM,STYLE_SOLID,4,Tomato);
IndicatorDigits(Digits+1);
SetIndexDrawBegin(0,DATA_LIMIT);
SetIndexDrawBegin(1,DATA_LIMIT);
SetIndexDrawBegin(2,DATA_LIMIT);
//--- 3 indicator buffers mapping
SetIndexBuffer(0,ExtAOBuffer);
SetIndexBuffer(1,ExtUpBuffer);
SetIndexBuffer(2,ExtDnBuffer);
//--- name for DataWindow and indicator subwindow label
IndicatorShortName("ao/oc");
SetIndexLabel(1,NULL);
SetIndexLabel(2,NULL);
}
//+------------------------------------------------------------------+
//| Awesome Oscillator |
//+------------------------------------------------------------------+
int OnCalculate(const int rates_total,
const int prev_calculated,
const datetime &time[],
const double &open[],
const double &high[],
const double &low[],
const double &close[],
const long &tick_volume[],
const long &volume[],
const int &spread[])
{
int i,limit=rates_total-prev_calculated;
double prev=0.0,current;
//--- check for rates total
if(rates_total<=DATA_LIMIT)
return(0);
//--- last counted bar will be recounted
if(prev_calculated>0)
{
limit++;
prev=ExtAOBuffer[limit];
}
//--- macd
for(i=0; i<limit; i++)
ExtAOBuffer[i]=(iMA(NULL,0,PERIOD_FAST,0,MODE_SMA,PRICE_MEDIAN,i)+
iMA(NULL,0,PERIOD_FAST,0,MODE_SMA,PRICE_MEDIAN,i+1))/2-
(iMA(NULL,0,PERIOD_SLOW,0,MODE_SMA,PRICE_MEDIAN,i)+
iMA(NULL,0,PERIOD_SLOW,0,MODE_SMA,PRICE_MEDIAN,i+1))/2;
// ExtAOBuffer[i]=(iOpen(NULL,0,i+1)+iHigh(NULL,0,i+1)+iLow(NULL,0,i+1)+iClose(NULL,0,i+1)+iOpen(NULL,0,i)+iHigh(NULL,0,i)+iLow(NULL,0,i)+iClose(NULL,0,i))/8;
//--- dispatch values between 2 buffers
bool up=true;
for(i=limit-1; i>=0; i--)
{
current=ExtAOBuffer[i];
if(current>prev)
up=true;
if(current<prev)
up=false;
if(!up)
{
ExtDnBuffer[i]=current;
ExtUpBuffer[i]=0.0;
}
else
{
ExtUpBuffer[i]=current;
ExtDnBuffer[i]=0.0;
}
prev=current;
}
//--- done
return(rates_total);
}
//+------------------------------------------------------------------+
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