CoeffoLine_Hist1
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This tool is designed to provide traders with a visual representation of price momentum and market behavior by calculating the relationship between actual price movements and smoothed moving averages.
How it Works
The script operates by looking back at a specific number of historical candles (the "Lookback Period") to analyze the core data of the market. It performs the following logic:
- Data Collection: For every point on your chart, the tool identifies the high and low prices to determine the "Median Price."
- Smoothing & Weighting: The tool calculates two distinct sets of values. First, it takes the raw median price data and applies a weighted calculation. Second, it takes a smoothed moving average (specifically a Smoothed Moving Average) and applies that same weighting logic.
- Comparative Analysis: By comparing these two sets of data—the raw price behavior versus the smoothed trend—the tool calculates a ratio. This ratio essentially measures how much the current price is "deviating" or "pulling away" from its established moving average.
- Logarithmic Conversion: To make this information readable and useful for technical analysis, the tool converts the resulting ratio into a logarithmic value. This ensures that the fluctuations are scaled appropriately rather than showing erratic jumps in numbers.
Visual Output
The final result is displayed as a histogram on a separate window below your main price chart.
- Directional Logic: The tool contains specific logic for major currency pairs (such as EURUSD, GBPUSD, etc.). For these specific pairs, it applies a negative multiplier to the calculation; for all other assets, it uses a positive multiplier. This ensures that the visual direction of the histogram remains consistent with the market's behavior across different types of instruments.
- Interpretation: The histogram serves as a gauge. When the values on the histogram move significantly in one direction or the other, it indicates a period of relative strength or weakness in the price action compared to its recent history.
Indicators Used
Miscellaneous
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CoeffoLine_Hist1
//+------------------------------------------------------------------+
//| CoeffofLine.mq4 |
//| Ramdass - Conversion only |
//+------------------------------------------------------------------+
#property indicator_separate_window
#property indicator_buffers 1
#property indicator_color1 Red
extern int ndot=30;
extern int CountBars=10000;
//---- buffers
double cfl[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
string short_name;
//---- indicator line
IndicatorBuffers(1);
SetIndexStyle(0,DRAW_HISTOGRAM);
SetIndexBuffer(0,cfl);
//----
return(0);
}
//+------------------------------------------------------------------+
//| CoeffofLine_v1 |
//+------------------------------------------------------------------+
int start()
{
if (CountBars>=Bars) CountBars=Bars;
SetIndexDrawBegin(0,Bars-CountBars+ndot+1);
int i,shift,cnt,ndot1,counted_bars=IndicatorCounted();
double TYVar,ZYVar,TIndicatorVar,ZIndicatorVar,M,N,AY,AIndicator;
//----
if(Bars<=ndot) return(0);
//----
shift=CountBars-ndot-1;
while(shift>=0)
{
TYVar=0;
ZYVar=0;
N=0;
M=0;
TIndicatorVar=0;
ZIndicatorVar=0;
ndot1=ndot;
if (shift+1<ndot1) ndot1=shift+1;
for (cnt=ndot; cnt>=1; cnt--)
{
N=N+cnt*cnt;
M=M+cnt;
}
for (cnt=ndot1; cnt>=1; cnt--)
{
ZYVar=ZYVar+(High[shift-cnt+1]+Low[shift-cnt+1])/2*(ndot+1-cnt);
TYVar=TYVar+(High[shift-cnt+1]+Low[shift-cnt+1])/2;
ZIndicatorVar=ZIndicatorVar+iMA(NULL,0,5,3,MODE_SMMA,PRICE_MEDIAN,shift-cnt+1)*(ndot+1-cnt);
TIndicatorVar=TIndicatorVar+iMA(NULL,0,5,3,MODE_SMMA,PRICE_MEDIAN,shift-cnt+1);
}
AY=(TYVar+(N-2*ZYVar)*ndot/M)/M;
AIndicator=(TIndicatorVar+(N-2*ZIndicatorVar)*ndot/M)/M;
if (Symbol()=="EURUSD" || Symbol()=="GBPUSD" || Symbol()=="USDCAD" || Symbol()=="USDCHF"
|| Symbol()=="EURGBP" || Symbol()=="EURCHF" || Symbol()=="AUDUSD"
|| Symbol()=="GBPCHF")
{cfl[shift]=(-1000)*MathLog(AY/AIndicator);}
else {cfl[shift]=(1000)*MathLog(AY/AIndicator);}
shift--;
}
return(0);
}
//+------------------------------------------------------------------+
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