EMAAngleZero_001
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This tool is designed to help traders visualize the momentum and direction of an Exponential Moving Average (EMA) by calculating its slope. Instead of just looking at the line itself, this indicator measures how "steep" the move is, which can provide valuable insights into whether a trend is gaining strength, weakening, or moving sideways.
How the Logic Works
The indicator operates by comparing two different points on an Exponential Moving Average to determine the trajectory of the price. Here is the breakdown of that process:
1. Measuring the Slope The script looks at the EMA at two specific points in time: a "starting point" (further back in history) and an "ending point" (closer to the current price). By calculating the difference between these two values, the tool determines the direction and magnitude of the move.
2. Sensitivity Scaling To make these movements visible and readable on your chart, the script applies a mathematical multiplier. This ensures that even subtle changes in the moving average are magnified enough to be clearly seen in the indicator window, while also adjusting automatically for different currency pairs (such as USDJPY) to maintain consistency across various assets.
3. Visual Classification The primary goal of this tool is to categorize the market movement into three distinct states based on a user-defined "Angle Threshold." It then displays these states using a color-coded histogram:
- Green (Upward Trend): When the calculated angle is positive and exceeds your chosen threshold, it indicates a strong upward move.
- Red (Downward Trend): When the angle is negative and falls below your chosen threshold, it signals a strong downward move.
- Yellow (Neutral/Sideways): If the angle is very close to zero (falling between your positive and negative thresholds), the indicator identifies this as a "flat" zone. This is often used by traders to identify periods of consolidation or lack of momentum before a new trend begins.
Summary for the User
By using this indicator, you can quickly distinguish between a market that is actively trending and one that is simply drifting. It filters out "noise" by allowing you to set a specific threshold; if the move isn't steep enough to meet your criteria, it will show up as neutral (yellow), helping you avoid entering trades in stagnant markets.
//+------------------------------------------------------------------+
//| EMAAngle.mq4 |
//| jpkfox |
//| |
//| You can use this indicator to measure when the EMA angle is |
//| "near zero". AngleTreshold determines when the angle for the |
//| EMA is "about zero": This is when the value is between |
//| [-AngleTreshold, AngleTreshold] (or when the histogram is red). |
//| EMAPeriod: EMA period |
//| AngleTreshold: The angle value is "about zero" when it is |
//| between the values [-AngleTreshold, AngleTreshold]. |
//| StartEMAShift: The starting point to calculate the |
//| angle. This is a shift value to the left from the |
//| observation point. Should be StartEMAShift > EndEMAShift. |
//| StartEMAShift: The ending point to calculate the |
//| angle. This is a shift value to the left from the |
//| observation point. Should be StartEMAShift > EndEMAShift. |
//| |
//| Modified by MrPip |
//| Red for down |
//| Yellow for near zero |
//| Green for up |
//| 10/15/05 MrPip |
//| Corrected problem with USDJPY and optimized code |
//| |
//+------------------------------------------------------------------+
#property copyright "jpkfox"
#property link "http://www.strategybuilderfx.com/forums/showthread.php?t=15274&page=1&pp=8"
//---- indicator settings
#property indicator_separate_window
#property indicator_buffers 3
#property indicator_color1 LimeGreen
#property indicator_color2 Yellow
#property indicator_color3 FireBrick
//---- indicator parameters
extern int EMAPeriod=34;
extern double AngleTreshold=0.2;
extern int StartEMAShift=6;
extern int EndEMAShift=0;
//---- indicator buffers
double UpBuffer[];
double DownBuffer[];
double ZeroBuffer[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- 2 additional buffers are used for counting.
IndicatorBuffers(3);
//---- drawing settings
SetIndexStyle(0,DRAW_HISTOGRAM,STYLE_SOLID,2);
SetIndexStyle(1,DRAW_HISTOGRAM,STYLE_SOLID,2);
SetIndexStyle(2,DRAW_HISTOGRAM,STYLE_SOLID,2);
IndicatorDigits(MarketInfo(Symbol(),MODE_DIGITS)+2);
//---- 3 indicator buffers mapping
if(!SetIndexBuffer(0,UpBuffer) &&
!SetIndexBuffer(1,DownBuffer) &&
!SetIndexBuffer(2,ZeroBuffer))
Print("cannot set indicator buffers!");
//---- name for DataWindow and indicator subwindow label
IndicatorShortName("EMAAngleZero("+EMAPeriod+","+AngleTreshold+","+StartEMAShift+","+EndEMAShift+")");
//---- initialization done
return(0);
}
//+------------------------------------------------------------------+
//| The angle for EMA |
//+------------------------------------------------------------------+
int start()
{
double fEndMA, fStartMA;
double fAngle, mFactor, dFactor;
int nLimit, i;
int nCountedBars;
double angle;
int ShiftDif;
if(EndEMAShift >= StartEMAShift)
{
Print("Error: EndEMAShift >= StartEMAShift");
StartEMAShift = 6;
EndEMAShift = 0;
}
nCountedBars = IndicatorCounted();
//---- check for possible errors
if(nCountedBars<0)
return(-1);
//---- last counted bar will be recounted
if(nCountedBars>0)
nCountedBars--;
nLimit = Bars-nCountedBars;
dFactor = 3.14159/180.0;
mFactor = 10000.0;
if (Symbol() == "USDJPY") mFactor = 100.0;
ShiftDif = StartEMAShift-EndEMAShift;
mFactor /= ShiftDif;
//---- main loop
for(i=0; i<nLimit; i++)
{
fEndMA=iMA(NULL,0,EMAPeriod,0,MODE_EMA,PRICE_MEDIAN,i+EndEMAShift);
fStartMA=iMA(NULL,0,EMAPeriod,0,MODE_EMA,PRICE_MEDIAN,i+StartEMAShift);
// 10000.0 : Multiply by 10000 so that the fAngle is not too small
// for the indicator Window.
fAngle = mFactor * (fEndMA - fStartMA);
// fAngle = MathArctan(fAngle)/dFactor;
DownBuffer[i] = 0.0;
UpBuffer[i] = 0.0;
ZeroBuffer[i] = 0.0;
if(fAngle > AngleTreshold)
UpBuffer[i] = fAngle;
else if (fAngle < -AngleTreshold)
DownBuffer[i] = fAngle;
else ZeroBuffer[i] = fAngle;
}
return(0);
}
//+------------------------------------------------------------------+
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