bbmacd_v2
Download script
This indicator is designed to provide a comprehensive overview of market dynamics by combining two popular technical analysis tools into a single visual workspace: the Bollinger Bands and the Moving Average Convergence Divergence (MACD). By merging these, the script aims to help traders identify price volatility, trend strength, and momentum simultaneously.
Core Logic Overview
The tool processes market data to create several distinct visual elements that help interpret the current "mood" of the market:
1. Trend Analysis The script calculates a specific "Trend Line." It does this by comparing a shorter-term moving average against a much longer-term moving average (specifically set to a 66-period interval). By measuring the distance between these two averages, the indicator helps highlight whether the overall market direction is leaning upwards or downwards.
2. Volatility and Price Boundaries The indicator incorporates Bollinger Bands logic to define the price's "territory." It calculates upper and lower boundaries based on a 20-period moving average. Rather than just showing where the price is, it specifically focuses on the distance between these bands and the median price. This helps traders see how far the price is stretching away from its average, which can signal whether a market is becoming overextended or remains stable.
3. Momentum Tracking (MACD Enhancement) The core of the momentum logic uses an enhanced version of the MACD formula. It looks at the relationship between "fast" and "slow" moving averages to determine how quickly price is changing.
- The Histogram: The script takes this momentum data and visualizes it as a histogram. When the momentum is rising, the bars appear in one color (Blue); when it begins to fall, they switch to another (White). This provides an immediate visual cue of whether the current move has "steam" behind it.
- The Signal Line: A secondary "Signal" line smooths out these momentum fluctuations, allowing traders to see the broader trend of the momentum itself, rather than just the tiny flickers of price movement.
How it Works Together
Instead of looking at two different windows to understand the market, this script consolidates the data so you can see the following at once:
- Where the price is relative to its boundaries (Bollinger logic).
- The overarching direction of the trend (Trend Line).
- The speed and strength of the current move (MACD Histogram and Signal).
By layering these three components, the script provides a multi-dimensional view of the market, helping to distinguish between a strong trending move and a volatile but directionless price fluctuation.
//+------------------------------------------------------------------+
//| BBMACD_V2.mq4 |
//| Copyright 2014, Roy Philips Jacobs ~ 02/08/2014 |
//| http://www.gol2you.com |
//+------------------------------------------------------------------+
#property copyright "Copyright 2014, Roy Philips Jacobs ~ 02/08/2014"
#property link "http://www.gol2you.com ~ Forex Videos"
#property description "Forex Indicator Bollinger Bands® and MACD Awesome Version 2."
#property description "BBMACD_v2 is the Bollinger Bands® and MACD Awesome indicator in the same place at separate window version 2."
#property version "1.00"
#property strict
//--
#include <MovingAverages.mqh>
//--
#property indicator_separate_window
#property indicator_buffers 8
#property indicator_color1 clrGold
#property indicator_color2 clrGold
#property indicator_color3 clrAqua
#property indicator_color4 clrNONE
#property indicator_color5 clrBlue
#property indicator_color6 clrWhite
#property indicator_color7 clrRed
#property indicator_color8 clrLightSlateGray
//--
#property indicator_width1 1
#property indicator_width2 1
#property indicator_width3 2
#property indicator_width4 1
#property indicator_width5 3
#property indicator_width6 3
#property indicator_width7 2
#property indicator_width8 1
//--
input string BBMACD_V2="Copyright © 2014 3RJ ~ Roy Philips-Jacobs";
input int TrendPeriod=66;
//-- indicator_buffers
double bb2lubuf[];
double bb2llbuf[];
double trendbuf[];
double macdbuf[];
double macdupbuf[];
double macddnbuf[];
double signalbuf[];
double cntrbuf[];
//--
int dev=2;
int mafast=5;
int signal=9;
int fastema=12;
int slowema=26;
int bbper=20;
//--
string symbol;
string CopyR;
//--
void EventSetTimer();
//---
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int OnInit()
{
//--- indicator property
symbol=_Symbol;
CopyR="Copyright © 2014 3RJ ~ Roy Philips-Jacobs";
//---
//--- indicator buffers mapping
IndicatorBuffers(8);
//---
SetIndexBuffer(0,bb2lubuf);
SetIndexBuffer(1,bb2llbuf);
SetIndexBuffer(2,trendbuf);
SetIndexBuffer(3,macdbuf);
SetIndexBuffer(4,macdupbuf);
SetIndexBuffer(5,macddnbuf);
SetIndexBuffer(6,signalbuf);
SetIndexBuffer(7,cntrbuf);
//--- indicator line drawing
SetIndexStyle(0,DRAW_LINE,STYLE_SOLID,EMPTY,clrGold);
SetIndexStyle(1,DRAW_LINE,STYLE_SOLID,EMPTY,clrGold);
SetIndexStyle(2,DRAW_LINE,STYLE_SOLID,EMPTY,clrAqua);
SetIndexStyle(3,DRAW_NONE);
SetIndexStyle(4,DRAW_HISTOGRAM,STYLE_SOLID,EMPTY,clrBlue);
SetIndexStyle(5,DRAW_HISTOGRAM,STYLE_SOLID,EMPTY,clrWhite);
SetIndexStyle(6,DRAW_LINE,STYLE_SOLID,EMPTY,clrRed);
SetIndexStyle(7,DRAW_LINE,STYLE_SOLID,EMPTY,clrLightSlateGray);
//--- name for DataWindow and indicator subwindow label
SetIndexLabel(0,"UpperLine");
SetIndexLabel(1,"LowerLine");
SetIndexLabel(2,"TrendLine");
SetIndexLabel(3,NULL);
SetIndexLabel(4,"MACDUp");
SetIndexLabel(5,"MACDDn");
SetIndexLabel(6,"Signal");
SetIndexLabel(7,NULL);
//--
IndicatorShortName("BBMACD-V2");
IndicatorDigits(Digits);
//--
//---
return(INIT_SUCCEEDED);
}
//---
//+------------------------------------------------------------------+
//| Custom indicator deinitialization function |
//+------------------------------------------------------------------+
void OnDeinit(const int reason)
{
//----
EventKillTimer();
GlobalVariablesDeleteAll();
//----
return;
}
//---
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
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[])
{
//---
if(BBMACD_V2!=CopyR) return(0);
//---
int i,limit;
double prv=0.00,cur;
bool up,dn;
//--- check for bars count
if(rates_total<=TrendPeriod) return(0);
//--- last counted bar will be recounted
limit=rates_total-prev_calculated;
if(prev_calculated>0) limit++;
//--
//--- counting from rates_total to 0
ArraySetAsSeries(bb2lubuf,true);
ArraySetAsSeries(bb2llbuf,true);
ArraySetAsSeries(trendbuf,true);
ArraySetAsSeries(macdbuf,true);
ArraySetAsSeries(macdupbuf,true);
ArraySetAsSeries(macddnbuf,true);
ArraySetAsSeries(signalbuf,true);
ArraySetAsSeries(low,true);
ArraySetAsSeries(high,true);
ArraySetAsSeries(close,true);
ArraySetAsSeries(open,true);
//--
//--- main cycle
for(i=limit-1; i>=0; i--)
{
//---
trendbuf[i]=iMA(symbol,0,bbper,0,MODE_SMA,PRICE_MEDIAN,i)-iMA(symbol,0,TrendPeriod,0,MODE_SMA,PRICE_MEDIAN,i);
bb2lubuf[i]=(iBands(symbol,0,bbper,dev,0,PRICE_MEDIAN,1,i)-iMA(symbol,0,bbper,0,MODE_SMA,PRICE_MEDIAN,i));
bb2llbuf[i]=(iBands(symbol,0,bbper,dev,0,PRICE_MEDIAN,2,i)-iMA(symbol,0,bbper,0,MODE_SMA,PRICE_MEDIAN,i));
macdbuf[i]=(iMA(symbol,0,fastema,0,MODE_EMA,PRICE_CLOSE,i)-iMA(symbol,0,slowema,0,MODE_EMA,PRICE_CLOSE,i))+
(iMA(symbol,0,mafast,0,MODE_EMA,PRICE_CLOSE,i)-iMA(symbol,0,slowema,0,MODE_EMA,PRICE_CLOSE,i));
SimpleMAOnBuffer(rates_total,prev_calculated,0,signal,macdbuf,signalbuf);
cur=macdbuf[i];
cntrbuf[i]=0.00;
//--
if(cur>prv) {up=true; dn=false;}
if(cur<prv) {dn=true; up=false;}
//--
if(up) {macdupbuf[i]=cur; macddnbuf[i]=0.00;}
if(dn) {macddnbuf[i]=cur; macdupbuf[i]=0.00;}
//--
prv=cur;
//---
}
//---
//--- return value of prev_calculated for next call
return(rates_total);
}
//+------------------------------------------------------------------+
Comments