DoubleSmoothStochastic%23
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This script is a custom technical analysis indicator designed for the MetaTrader platform. Its primary purpose is to provide a refined version of the "Stochastic Oscillator," a common tool used by traders to identify whether an asset is overbought or oversold by measuring the current price relative to its recent price range.
Core Logic and Workflow
The script processes market data through three distinct stages of calculation to produce smooth, readable visual lines on a chart:
1. Primary Momentum Calculation The script begins by looking at a specific window of historical data (the Period). It identifies the highest and lowest prices within that timeframe. It then calculates where the current closing price sits within that range as a percentage. For example, if the price is near the top of the recent range, the resulting value is high; if it is near the bottom, the value is low.
2. First Smoothing Pass To prevent the data from being too "jittery" or erratic, the script applies a smoothing algorithm. It takes the raw momentum values calculated in the first step and blends them with the previous values based on a user-defined weight (Slw). This creates a more fluid motion, making it easier for a trader to see the general trend of the price movement without getting distracted by minor, insignificant price spikes.
3. Secondary Smoothing and Signal Generation The logic then performs a multi-layered refinement:
- Rolling Range Analysis: It re-evaluates the highs and lows using the smoothed data from the previous step. This ensures that the "range" being measured isn't affected by outliers but rather reflects the established trend.
- Signal Line Construction: Finally, the script calculates a "Signal Line." This is essentially a moving average of the already-smoothed momentum. By plotting this signal line against the main momentum line, the tool allows users to identify potential turning points—specifically when the momentum shifts significantly enough to cross over the signal line.
Summary for the User
In plain terms, instead of showing you the raw, noisy fluctuations of market prices, this script "filters" the data twice. It takes the price movement, smooths it out to remove noise, and then creates a secondary trend line. The result is a cleaner visual representation that helps traders see the underlying momentum of the market more clearly than a standard oscillator would allow.
#include <stdlib.mqh>
//+------------------------------------------------------------------+
//| DoubleSmoothStochastic.mq4 |
//| |
//| |
//+------------------------------------------------------------------+
// This was converted using YouSky's MT3 to MT4 translator. I cannot take credit for the code.//
#property indicator_separate_window
#property indicator_minimum 0.00
#property indicator_maximum 100.00
#property indicator_color1 Cyan
#property indicator_buffers 2
#property indicator_color2 Magenta
//+------------------------------------------------------------------+
//| Common External variables |
//+------------------------------------------------------------------+
//+------------------------------------------------------------------+
//| External variables |
//+------------------------------------------------------------------+
extern double Slw = 8;
extern double Pds = 13;
extern double Slwsignal = 9;
extern int Barcount = 2000;
//+------------------------------------------------------------------+
//| Special Convertion Functions |
//+------------------------------------------------------------------+
int LastTradeTime;
double ExtHistoBuffer[];
double ExtHistoBuffer2[];
void SetLoopCount(int loops)
{
}
void SetIndexValue(int shift, double value)
{
ExtHistoBuffer[shift] = value;
}
void SetIndexValue2(int shift, double value)
{
ExtHistoBuffer2[shift] = value;
}
double GetIndexValue(int shift)
{
return(ExtHistoBuffer[shift]);
}
double GetIndexValue2(int shift)
{
return(ExtHistoBuffer2[shift]);
}
//+------------------------------------------------------------------+
//| End |
//+------------------------------------------------------------------+
//+------------------------------------------------------------------+
//| Initialization |
//+------------------------------------------------------------------+
int init()
{
SetIndexStyle(0, DRAW_LINE, STYLE_SOLID);
SetIndexBuffer(0, ExtHistoBuffer);
SetIndexStyle(1, DRAW_LINE, STYLE_SOLID);
SetIndexBuffer(1, ExtHistoBuffer2);
return(0);
}
int start()
{
//+------------------------------------------------------------------+
//| Local variables |
//+------------------------------------------------------------------+
double AA = 0;
double bb = 0;
double aa1 = 0;
double cnt1 = 0;
int shift = 0;
double cnt = 0;
double loopbegin = 0;
double loopbegin2 = 0;
double loopbegin3 = 0;
bool first = True;
double prevbars = 0;
double sum = 0;
double smconst = 0;
double smconst1 = 0;
double prev = 0;
double prev1 = 0;
double prev2 = 0;
double prev3 = 0;
double weight = 0;
double linear = 0;
double MAValue = 0;
double MAValue2 = 0;
double mavalue3 = 0;
string MAstring = "";
double MyHigh = 0;
double MyLow = 0;
int counter = 0;
double Price = 0;
double Price1 = 0;
double tmpDevAA = 0;
SetLoopCount(0);
smconst = 2 / (1+Slw);
smconst1 = 2 / (1+Slwsignal);
loopbegin = loopbegin+1;
for(shift =Barcount;shift >=0 ;shift --)
{
prev = GetIndexValue2(shift+1);
// Yousky 15/05/2006 - Change to avoid Zero divide exception.
AA = 0;
tmpDevAA = (High[Highest(NULL, 0, MODE_HIGH,shift+Pds,Pds)] - Low[Lowest(NULL, 0, MODE_LOW,shift+Pds,Pds)]);
if (tmpDevAA != 0)
AA = 100* ((Close[shift] - Low[Lowest(NULL, 0, MODE_LOW,shift+Pds,Pds)]) / tmpDevAA);
// ---
MAValue2 = smconst * (AA-prev) + prev;
SetIndexValue2(shift,MAValue2);
loopbegin = loopbegin-1;
}
loopbegin2 = loopbegin2+1;
for(shift =Barcount-Pds;shift >=0 ;shift --){
MyHigh = -999999;
MyLow = 99999999;
for(counter =shift;counter <=Pds + shift ;counter ++){
Price= GetIndexValue2(counter);
if( Price > MyHigh )
MyHigh = Price;
if( Pds <= 0 )
MyHigh = Price;
if( Price < MyLow )
MyLow = Price;
if( Pds <= 0 )
MyLow = Price;
}
prev1 = GetIndexValue(shift+1);
aa1=GetIndexValue2(shift);
// Yousky 15/05/2006 - Change to avoid Zero divide exception.
bb= 0;
if ((MyHigh-MyLow) != 0)
bb=100*(aa1-MyLow)/(MyHigh-MyLow);
// ---
MAValue = smconst * (bb-prev1) + prev1;
SetIndexValue(shift,MAValue);
loopbegin2 = loopbegin2-1;
}
loopbegin3 = loopbegin3+1;
for(shift =Barcount;shift >=0 ;shift --){
prev2=GetIndexValue2(shift+1);
prev3=GetIndexValue(shift);
mavalue3= smconst1 * (prev3-prev2) +prev2;
SetIndexValue2(shift,mavalue3);
loopbegin3 = loopbegin3-1;
}
}
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