This script is designed as a visual charting tool for MetaTrader 4 that identifies and maps out dynamic support and resistance zones based on moving averages and Fibonacci-style proportions. It serves to help traders visualize "critical points" where price action might react, stabilize, or reverse.
Core Logic and Functionality
1. Trend Smoothing (The Moving Average) The foundation of this script is a Moving Average (MA). The tool calculates the average price over a specific number of past candles (the period) to identify the general trend. It offers several different calculation methods:
- Simple, Exponential, Smoothed, and Linear Weighted averages.
- A specialized "Linear Regression" style average (LSMA) which attempts to find the "best-fit" line for price movement.
By using these averages, the script identifies a "baseline" value that represents the current equilibrium of the market.
2. Dynamic Zone Projection Once the baseline Moving Average value is established, the script does not just leave it as a single line. Instead, it projects a series of proportional offsets above and below that baseline. These offsets are modeled after Fibonacci-style increments (specifically 23, 38, 50, 61, and 100).
Essentially, for every "center" point identified by the moving average, the script creates:
- Five levels projected upward.
- Five levels projected downward.
3. Visual Mapping on the Chart Rather than drawing a static history, the script dynamically updates these ten horizontal lines (5 up, 5 down) to follow the current price action in real-time. These appear as dashed/dotted lines on your chart:
- Dynamic Updates: As the Moving Average moves up or down with the market, all ten projected lines move in unison to maintain their relative distance from the center.
- Color Coding: Each of the five levels is assigned a unique color, allowing traders to instantly distinguish between different "zones" of interest (e.g., identifying near-term targets versus long-term resistance).
Summary for the Trader
Think of this tool as an automated "map maker." Instead of you having to manually draw lines where you think price might stop, the script calculates a central moving average and automatically paints a "ladder" of potential reaction points around it. It highlights the surrounding volatility boundaries, helping you see where the market may be overextended or where it is likely to find support based on mathematical proportions.
//+------------------------------------------------------------------+
//| Critical Points.mq4 |
//| emsjoflo |
//| automaticforex.invisionzone.com |
//+------------------------------------------------------------------+
#property copyright "emsjoflo"
#property link "automaticforex.invisionzone.com"
#property indicator_chart_window
#property indicator_buffers 1
#property indicator_color1 Red
//---- input parameters
extern int MAPeriod=157;
extern int MAType = 0;
extern int Fib1=23;
extern int Fib2=38;
extern int Fib3=50;
extern int Fib4=61;
extern int Fib5=100;
extern color Color1=Khaki;
extern color Color2=LightGreen;
extern color Color3=LightSkyBlue;
extern color Color4=Plum;
extern color Color5=LightSalmon;
double Line1,Line_1,Line2,Line_2,Line3,Line_3,Line4,Line_4,Line5,Line_5,MAVal,MAValOld;
//---- buffers
double ExtMapBuffer1[];
//---- variables
int MAMode;
string strMAType;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- indicators
SetIndexStyle(0,DRAW_LINE);
SetIndexBuffer(0,ExtMapBuffer1);
//----
switch (MAType)
{
case 1: strMAType="EMA"; MAMode=MODE_EMA; break;
case 2: strMAType="SMMA"; MAMode=MODE_SMMA; break;
case 3: strMAType="LWMA"; MAMode=MODE_LWMA; break;
case 4: strMAType="LSMA"; break;
default: strMAType="SMA"; MAMode=MODE_SMA; break;
}
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
//----
ObjectDelete("cp1");
ObjectDelete("cp2");
ObjectDelete("cp3");
ObjectDelete("cp4");
ObjectDelete("cp5");
ObjectDelete("cp_1");
ObjectDelete("cp_2");
ObjectDelete("cp_3");
ObjectDelete("cp_4");
ObjectDelete("cp_5");
//----
return(0);
}
double LSMA(int Rperiod, int shift)
{
int i;
double sum;
int length;
double lengthvar;
double tmp;
double wt;
length = Rperiod;
sum = 0;
for(i = length; i >= 1 ; i--)
{
lengthvar = length + 1;
lengthvar /= 3;
tmp = 0;
tmp = ( i - lengthvar)*Close[length-i+shift];
sum+=tmp;
}
wt = sum*6/(length*(length+1));
return(wt);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
int limit;
int counted_bars = IndicatorCounted();
//---- check for possible errors
if (counted_bars<0) return(-1);
//---- last counted bar will be recounted
if (counted_bars>0) counted_bars--;
limit = Bars - counted_bars;
for(int i=limit; i>=0; i--)
{
if (MAType == 4)
{
MAVal = LSMA(MAPeriod,i);
}
else
{
MAVal=iMA(NULL,0,MAPeriod,0,MAMode,PRICE_CLOSE,i);
}
ExtMapBuffer1[i] = MAVal;
}
Line1=MAVal+Fib1*Point;
Line2=MAVal+Fib2*Point;
Line3=MAVal+Fib3*Point;
Line4=MAVal+Fib4*Point;
Line5=MAVal+Fib5*Point;
Line_1=MAVal-Fib1*Point;
Line_2=MAVal-Fib2*Point;
Line_3=MAVal-Fib3*Point;
Line_4=MAVal-Fib4*Point;
Line_5=MAVal-Fib5*Point;
if(ObjectFind("cp1") != 0)
{
ObjectCreate("cp1", OBJ_HLINE, 0, Time[20], Line1);
ObjectSet("cp1", OBJPROP_STYLE, STYLE_DASHDOTDOT);
ObjectSet("cp1", OBJPROP_COLOR, Color1);
}
else
{
ObjectMove("cp1", 0, Time[20], Line1);
}
if(ObjectFind("cp2") != 0)
{
ObjectCreate("cp2", OBJ_HLINE, 0, Time[20], Line2);
ObjectSet("cp2", OBJPROP_STYLE, STYLE_DASHDOTDOT);
ObjectSet("cp2", OBJPROP_COLOR, Color2);
}
else
{
ObjectMove("cp2", 0, Time[20], Line2);
}
if(ObjectFind("cp3") != 0)
{
ObjectCreate("cp3", OBJ_HLINE, 0, Time[20], Line3);
ObjectSet("cp3", OBJPROP_STYLE, STYLE_DASHDOTDOT);
ObjectSet("cp3", OBJPROP_COLOR, Color3);
}
else
{
ObjectMove("cp3", 0, Time[20], Line3);
}
if(ObjectFind("cp4") != 0)
{
ObjectCreate("cp4", OBJ_HLINE, 0, Time[20], Line4);
ObjectSet("cp4", OBJPROP_STYLE, STYLE_DASHDOTDOT);
ObjectSet("cp4", OBJPROP_COLOR, Color4);
}
else
{
ObjectMove("cp4", 0, Time[20], Line4);
}
if(ObjectFind("cp5") != 0)
{
ObjectCreate("cp5", OBJ_HLINE, 0, Time[20], Line5);
ObjectSet("cp5", OBJPROP_STYLE, STYLE_DASHDOTDOT);
ObjectSet("cp5", OBJPROP_COLOR, Color5);
}
else
{
ObjectMove("cp5", 0, Time[20], Line5);
}
if(ObjectFind("cp_1") != 0)
{
ObjectCreate("cp_1", OBJ_HLINE, 0, Time[20], Line_1);
ObjectSet("cp_1", OBJPROP_STYLE, STYLE_DASHDOTDOT);
ObjectSet("cp_1", OBJPROP_COLOR, Color1);
}
else
{
ObjectMove("cp_1", 0, Time[20], Line_1);
}
if(ObjectFind("cp_2") != 0)
{
ObjectCreate("cp_2", OBJ_HLINE, 0, Time[20], Line_2);
ObjectSet("cp_2", OBJPROP_STYLE, STYLE_DASHDOTDOT);
ObjectSet("cp_2", OBJPROP_COLOR, Color2);
}
else
{
ObjectMove("cp_2", 0, Time[20], Line_2);
}
if(ObjectFind("cp_3") != 0)
{
ObjectCreate("cp_3", OBJ_HLINE, 0, Time[20], Line_3);
ObjectSet("cp_3", OBJPROP_STYLE, STYLE_DASHDOTDOT);
ObjectSet("cp_3", OBJPROP_COLOR, Color3);
}
else ObjectMove("cp_3", 0, Time[20], Line_3);
if(ObjectFind("cp_4") != 0)
{
ObjectCreate("cp_4", OBJ_HLINE, 0, Time[20], Line_4);
ObjectSet("cp_4", OBJPROP_STYLE, STYLE_DASHDOTDOT);
ObjectSet("cp_4", OBJPROP_COLOR, Color4);
}
else ObjectMove("cp_4", 0, Time[20], Line_4);
if(ObjectFind("cp_5") != 0)
{
ObjectCreate("cp_5", OBJ_HLINE, 0, Time[20], Line_5);
ObjectSet("cp_5", OBJPROP_STYLE, STYLE_DASHDOTDOT);
ObjectSet("cp_5", OBJPROP_COLOR, Color5);
}
else
{
ObjectMove("cp_5", 0, Time[20], Line_5);
}
//----
return(0);
}
//+------------------------------------------------------------------+
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