chainpricersi
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This indicator is designed to assist traders by identifying potential entry points in the Forex market using a combination of momentum, trend smoothing, and price action analysis. Instead of relying on a single metric, it synthesizes several technical layers to filter out "noise" and highlight high-probability signals.
How the Logic Works
The core engine of this script operates through three primary stages:
1. Momentum and Smoothing The tool begins by calculating the Relative Strength Index (RSI), which measures the speed and change of price movements. However, rather than showing the raw RSI—which can be volatile—the script applies different types of "Moving Averages" to it:
- Trend Smoothing: It creates a long-term view of the RSI to identify the broader direction.
- Movement Tracking: It calculates a shorter-term average to capture immediate shifts in momentum.
- Base Calculation: It establishes a baseline average to help differentiate between minor price fluctuations and significant moves.
2. Price Action Confirmation To ensure the signals are backed by actual market movement, the script also monitors two specific weighted moving averages (3-period and 10-period). By comparing the distance between these two lines across different candles, the tool detects whether the "gap" is expanding or contracting, which helps confirm the strength of a current price push.
3. Signal Generation (Buy & Sell Arrows) The script looks for a specific "confluence"—a moment where multiple conditions align at once:
- Buy Signals: Triggered when the short-term momentum average crosses above the base average, paired with an increasing spread between the price moving averages. When these conditions meet, a Blue Arrow appears on the chart.
- Sell Signals: Triggered when the short-term momentum average falls below the base average, while the price moving averages show a specific downward contraction. When these conditions meet, a White Arrow appears on the chart.
Visual Aids and Reference Levels
To help the user navigate the visual data, the indicator includes predefined horizontal levels:
- Sell Zone: A warning level at 38, suggesting areas where price might be overextended to the upside.
- Buy Zone: A warning level at 62, suggesting areas where price might be overextended to the downside.
Summary for the Trader
Essentially, this script acts as a filter. It watches the momentum of the market (via RSI) and the "stretch" of the current price (via Moving Averages). When it detects that momentum is shifting in favor of a trend and that the price movement confirms that shift, it places an arrow on your chart to signal a potential trade entry.
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chainpricersi
//+------------------------------------------------------------------+
//| ChainPriceRSI.mq4 |
//| Copyright 2014, Roy Philips Jacobs ~ 13/08/2014 |
//| http://www.gol2you.com |
//+------------------------------------------------------------------+
#property copyright "Copyright 2014, Roy Philips Jacobs ~ 13/08/2014"
#property link "http://www.gol2you.com ~ Forex Videos"
#property description "Forex Indicator ChainPriceRSI ~ Based on the RSI and MA indicators."
#property description "Chain Price RSI Indicator is an indicator of Trend Lines Arrow with Direction to open orders."
#property version "1.00"
#property strict
//--
#include <MovingAverages.mqh>
//--
#property indicator_separate_window
#property indicator_buffers 10
#property indicator_color1 clrNONE
#property indicator_color2 clrRed
#property indicator_color3 clrNONE
#property indicator_color4 clrNONE
#property indicator_color5 clrBlue
#property indicator_color6 clrNONE
#property indicator_color7 clrWhite
#property indicator_color8 clrNONE
//--
#property indicator_width1 1
#property indicator_width2 1
#property indicator_width3 1
#property indicator_width4 1
#property indicator_width5 1
#property indicator_width6 1
#property indicator_width7 1
#property indicator_width8 1
//--
input string ChainPriceRSI="Copyright © 2014 3RJ ~ Roy Philips-Jacobs";
input int RSIPeriod=14; // RSI Period
input int TrendPeriod=34;
input int MovePeriod=3;
input int BasePeriod=6;
//-- indicator_buffers
double RSIbuf[];
double Trendbuf[];
double maMvbuf[];
double maBsbuf[];
double maMvBbuf[];
double maBsBbuf[];
double maMvSbuf[];
double maBsSbuf[];
double ma3[],ma10[];
//--
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(10);
//---
SetIndexBuffer(0,RSIbuf);
SetIndexBuffer(1,Trendbuf);
SetIndexBuffer(2,maMvbuf);
SetIndexBuffer(3,maBsbuf);
SetIndexBuffer(4,maMvBbuf);
SetIndexBuffer(5,maBsBbuf);
SetIndexBuffer(6,maMvSbuf);
SetIndexBuffer(7,maBsSbuf);
SetIndexBuffer(8,ma3);
SetIndexBuffer(9,ma10);
//--- set levels
IndicatorSetInteger(INDICATOR_LEVELS,4);
IndicatorSetDouble(INDICATOR_LEVELVALUE,0,20);
IndicatorSetDouble(INDICATOR_LEVELVALUE,1,38);
IndicatorSetString(INDICATOR_LEVELTEXT,1,"Sell above or equal to level-38");
IndicatorSetDouble(INDICATOR_LEVELVALUE,2,62);
IndicatorSetString(INDICATOR_LEVELTEXT,2,"Buy below or equal to level-62");
IndicatorSetDouble(INDICATOR_LEVELVALUE,3,80);
//--- set maximum and minimum for subwindow
IndicatorSetDouble(INDICATOR_MINIMUM,0);
IndicatorSetDouble(INDICATOR_MAXIMUM,100);
//--- indicator line drawing
SetIndexStyle(0,DRAW_NONE);
SetIndexStyle(1,DRAW_LINE,STYLE_SOLID,EMPTY,clrRed);
SetIndexStyle(2,DRAW_NONE);
SetIndexStyle(3,DRAW_NONE);
SetIndexStyle(4,DRAW_ARROW,STYLE_SOLID,EMPTY,clrBlue);
SetIndexArrow(4,217);
SetIndexStyle(5,DRAW_NONE);
SetIndexStyle(6,DRAW_ARROW,STYLE_SOLID,EMPTY,clrWhite);
SetIndexArrow(6,218);
SetIndexStyle(7,DRAW_NONE);
SetIndexStyle(8,DRAW_NONE);
SetIndexStyle(9,DRAW_NONE);
//--- name for DataWindow and indicator subwindow label
SetIndexLabel(0,"RSI("+string(RSIPeriod)+")");
SetIndexLabel(1,"Trend("+string(TrendPeriod)+")");
SetIndexLabel(2,"Move("+string(MovePeriod)+")");
SetIndexLabel(3,"Base("+string(BasePeriod)+")");
SetIndexLabel(4,"Buy Level");
SetIndexLabel(5,NULL);
SetIndexLabel(6,"Sell Level");
SetIndexLabel(7,NULL);
SetIndexLabel(8,NULL);
SetIndexLabel(9,NULL);
//--
IndicatorShortName("ChainPriceRSI ");
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(ChainPriceRSI!=CopyR) return(0);
//---
int i,limit;
bool buy,sell;
//--- 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(RSIbuf,true);
ArraySetAsSeries(Trendbuf,true);
ArraySetAsSeries(maMvbuf,true);
ArraySetAsSeries(maBsbuf,true);
ArraySetAsSeries(maMvBbuf,true);
ArraySetAsSeries(maBsBbuf,true);
ArraySetAsSeries(maMvSbuf,true);
ArraySetAsSeries(maBsSbuf,true);
ArraySetAsSeries(ma3,true);
ArraySetAsSeries(ma10,true);
ArraySetAsSeries(low,true);
ArraySetAsSeries(high,true);
ArraySetAsSeries(close,true);
//--
//--- main cycle
for(i=limit-1; i>=0; i--)
{
//---
RSIbuf[i]=iRSI(symbol,0,RSIPeriod,PRICE_CLOSE,i);
SmoothedMAOnBuffer(rates_total,prev_calculated,0,TrendPeriod,RSIbuf,Trendbuf);
SmoothedMAOnBuffer(rates_total,prev_calculated,0,MovePeriod,RSIbuf,maMvbuf);
SimpleMAOnBuffer(rates_total,prev_calculated,0,BasePeriod,RSIbuf,maBsbuf);
ma3[i]=iMA(symbol,0,3,0,MODE_SMA,PRICE_WEIGHTED,i);
ma10[i]=iMA(symbol,0,10,0,MODE_SMA,PRICE_WEIGHTED,i);
//--
if((maMvbuf[i]>maBsbuf[i])&&((ma3[i]-ma10[i])>(ma3[i+1]-ma10[i+1]))) {buy=true; sell=false;}
if((maMvbuf[i]<maBsbuf[i])&&((ma3[i]-ma10[i])<(ma3[i+1]-ma10[i+1]))) {sell=true; buy=false;}
//--
if(buy) {maMvBbuf[i]=maMvbuf[i]; maBsBbuf[i]=maBsbuf[i]; maMvSbuf[i]=EMPTY_VALUE; maBsSbuf[i]=EMPTY_VALUE;}
if(sell) {maMvSbuf[i]=maMvbuf[i]; maBsSbuf[i]=maBsbuf[i]; maMvBbuf[i]=EMPTY_VALUE; maBsBbuf[i]=EMPTY_VALUE;}
//---
}
//---
//--- return value of prev_calculated for next call
return(rates_total);
}
//+------------------------------------------------------------------+
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