This script is a specialized analytical tool designed to monitor complex currency relationships by aggregating multiple pairs into a single, unified visual trend. It is primarily intended for traders using the "FFS" (Forex Four Square) methodology, providing a comprehensive view of market movements across several different currencies simultaneously.
Core Logic Overview
The primary objective of this script is to take various currency crosses—which often move at different price scales—and normalize them so they can be compared accurately on a single chart. It then applies mathematical filters to help traders identify specific timing for market entries and exits.
1. Data Aggregation and Weighting
The tool allows you to select different "Index Types." Depending on your selection, the script pulls real-time price data from various currency pairs (such as EUR/CHF, GBP/JPY, USD/CHF, etc.).
Because these pairs have very different values, the script performs a specific calculation to weigh them equally. It adjusts each pair so that they fit onto a consistent scale of 10,000. By combining these into one "Cross" value, it gives you a bird's-eye view of how a group of currencies is behaving as a single unit rather than looking at individual charts.
2. Data Normalization
To ensure the visual data is easy to read, the script performs a "Normalization" process. It identifies the highest and lowest points of the combined currency data over a specific period and converts that data into a percentage-style scale (between 0 and 100). This allows you to see the relative strength of the trend regardless of the actual price of the currencies.
3. Trend Analysis Indicators
Once the unified trend is created, the script applies three distinct types of mathematical filters to help refine your trading signals:
- CCI (Commodity Channel Index): This is used to measure the momentum of the normalized trend. It helps identify whether the market is overextended or moving strongly in one direction.
- Laguerre RSI (Short and Long): The script calculates two different versions of a "Laguerre" style Relative Strength Index. These are specialized smoothing filters designed to react quickly to price changes while filtering out "noise."
- The Short Laguerre reacts faster to immediate movements.
- The Long Laguerre provides a smoother, broader view of the trend.
How to Interpret the Results
The script produces a visual representation where you can see the combined strength of your chosen currency group. By observing how the CCI and the two Laguerre lines interact with the normalized trend line, you can better judge the "timing" of the market.
When these indicators align or cross specific thresholds, they provide a signal regarding the potential direction of the "FFS" hedge pairs, helping to navigate volatile market swings by showing where the combined currency pressure is heading.
//+------------------------------------------------------------------+
//| FFS_CrossTiming.mq4 |
//| Release date 20070128 |
//+------------------------------------------------------------------+
#property copyright "icm63 (user name at Forex-TSD)"
#property link "Forex-TSD"
/*
READ ME FIRST..
I have nothing to do with www.forexforsmarties.com.
You use these tools at YOUR OWN RISK.
I do not endorse or sell FFS methods or products in any way.
These tools are provided FREE of charge, I wish to promote the development of MT4 tools and minds
of those who trade FFS to get the best 'How to FFS tools'. So we all can trade FFS thru easy
and tough times. As the Forex market gives and takes away fortunes ! To make 5% monthly
compounding over 10 years is not easy when the forex beast changes.
Use with
FFS_Trend
FFS_Correlation
FFS_Cross
FFS_NetPipChange
IMPORTANT : Make sure the 'IndexType' is the same within each MT4 tool.
The FFS_Mode should be set as BUY, to mirror the FFS Calcutator.
Like the FFS_Correlation tool, this is a fundamental watch. It shows the combined trend of
all the crosses related to the hedge pair in question. All cross have been adjusted to be on
the same price scale and treated as equal weight.
When this start getting wild so will the accounts trading FFS, and settings will have to be
adjusted for survival. Use the FFS_Trainspotter (in FFS_Trend) to see FFS_NetPipChange summary
to view the extremes of the net pip swings of the hedge pairs.
This is the index selection format
1. EUR/USD, USD/CHF
2. EUR/USD, USD/CHF, GBP/USD
3. EUR/USD, USD/CHF, GBP/USD, USD/JPY
4. EUR/USD, USD/CHF, USD/JPY
5. EUR/USD, GBP/USD, USD/JPY
6. USD/CHF, GBP/USD
7. USD/CHF, GBP/USD, USD/JPY
8. GBP/USD, USD/JPY
*/
#property indicator_separate_window
#property indicator_buffers 3
#property indicator_color1 Red
#property indicator_color2 DarkGreen
#property indicator_color3 Lime
#property indicator_level1 60
#property indicator_level2 40
//User Inputs Parameters
extern int IndexType = 9; // FFS Index see above
extern int CCI = 5; //CCI period
extern double Lag1_Gamma = 0.5; //Laguerre Gamma Short
extern double Lag2_Gamma = 0.8; //Laguerre Gamma Long
//---- variables
double cross1[];
double CCI1[];
double Lag1[];
double Lag2[];
double normCCI1[];
double normcross1[];
string shortname;
//Laguerra Variables
double L0A = 0;
double L1A = 0;
double L2A = 0;
double L3A = 0;
double L0 = 0;
double L1 = 0;
double L2 = 0;
double L3 = 0;
double CU = 0;
double CD = 0;
double LRSI = 0;
int init()
{
shortname = "FFS_CrossTiming Index " + IndexType +
", CCI Red ("+CCI+ "), Laguerre("+DoubleToStr(Lag1_Gamma,1)+","+DoubleToStr(Lag2_Gamma,1)+"), ";
IndicatorShortName(shortname);
IndicatorBuffers(6);
SetIndexDrawBegin(0,CCI+1);
SetIndexStyle(0,DRAW_LINE);
SetIndexBuffer(0,normCCI1);
SetIndexLabel(0, "CCI1");
SetIndexDrawBegin(1,5);
SetIndexEmptyValue(1, -0.01);
SetIndexStyle(1,DRAW_LINE);
SetIndexBuffer(1,Lag1);
SetIndexLabel(1, "Lag1");
SetIndexDrawBegin(2,5);
SetIndexEmptyValue(2, -0.01);
SetIndexStyle(2,DRAW_LINE);
SetIndexBuffer(2,Lag2);
SetIndexLabel(2, "Lag2");
SetIndexBuffer(3,cross1);
SetIndexBuffer(4,CCI1);
SetIndexBuffer(5,normcross1);
return(0);
}
int deinit()
{
return(0);
}
int start()
{
int limit;
int counted_bars=IndicatorCounted();
if(counted_bars<0) return(-1);
if(counted_bars>0) counted_bars-=1;
limit=Bars-counted_bars;
double EURCHFW, GBPCHFW, EURJPYW, GBPJPYW, CHFJPYW, EURGBPW;
//Determine correct weight to get all prices on scale of 10,000
EURCHFW = (10000/(iClose("EURCHF",0,1)*10000))*10000;
GBPCHFW = (10000/(iClose("GBPCHF",0,1)*10000))*10000;
EURJPYW = (10000/(iClose("EURJPY",0,1)*10000))*10000;
GBPJPYW = (10000/(iClose("GBPJPY",0,1)*10000))*10000;
CHFJPYW = (10000/(iClose("CHFJPY",0,1)*10000))*10000;
EURGBPW = (10000/(iClose("EURGBP",0,1)*10000))*10000;
for(int i=limit; i>=0; i--)
{
switch(IndexType)
{
case 1:
//1. EUR/USD, USD/CHF"
cross1[i]= iClose("EURCHF",0,i) * EURCHFW;
break;
case 2:
//2. EUR/USD, USD/CHF, GBP/USD
cross1[i]= iClose("EURCHF",0,i) * EURCHFW + iClose("GBPCHF",0,i) * GBPCHFW
+ iClose("EURGBP",0,i) * EURGBPW;
break;
case 3:
//3. EUR/USD, USD/CHF, GBP/USD, USD/JPY
cross1[i]= iClose("EURCHF",0,i) * EURCHFW + iClose("GBPCHF",0,i) * GBPCHFW
+ iClose("EURJPY",0,i) * EURJPYW + iClose("GBPJPY",0,i) * GBPJPYW
+ iClose("CHFJPY",0,i) * CHFJPYW + iClose("EURGBP",0,i) * EURGBPW ;
break;
case 4:
//4. EUR/USD, USD/CHF, USD/JPY
cross1[i]= iClose("EURCHF",0,i) * EURCHFW + iClose("EURJPY",0,i) * EURJPYW
+ iClose("CHFJPY",0,i) * CHFJPYW ;
break;
case 5:
//5. EUR/USD, GBP/USD, USD/JPY
cross1[i]= iClose("EURJPY",0,i) * EURJPYW + iClose("GBPJPY",0,i) * GBPJPYW
+ iClose("EURGBP",0,i) * EURGBPW ;
break;
case 6:
//6. USD/CHF, GBP/USD
cross1[i]= iClose("GBPCHF",0,i) * GBPCHFW ;
break;
case 7:
//7. USD/CHF, GBP/USD, USD/JPY
cross1[i]= iClose("GBPCHF",0,i) * GBPCHFW + iClose("GBPJPY",0,i) * GBPJPYW
+ iClose("CHFJPY",0,i) * CHFJPYW ;
break;
case 8:
//8. GBP/USD, USD/JPY
cross1[i]= iClose("GBPJPY",0,i) * GBPJPYW ;
break;
case 9:
//9. Chart Symbol
cross1[i]= iClose(NULL,0,i) ;
break;
default:
//3. EUR/USD, USD/CHF, GBP/USD, USD/JPY
cross1[i]= iClose("EURCHF",0,i) * EURCHFW + iClose("GBPCHF",0,i) * GBPCHFW
+ iClose("EURJPY",0,i) * EURJPYW + iClose("GBPJPY",0,i) * GBPJPYW
+ iClose("CHFJPY",0,i) * CHFJPYW + iClose("EURGBP",0,i) * EURGBPW ;
break;
}
//Find Max and Min or series
double Maxcross1=-10000000, Mincross1=10000000;
for (int k=0; k<limit;k++)
{
if( cross1[i+k] > Maxcross1) Maxcross1 = cross1[i+k];
if( cross1[i+k] < Mincross1) Mincross1 = cross1[i+k];
}
}
//Normalise Data btw 0 and 100
for(int m=limit; m>=0; m--)
{
if (Maxcross1 - Mincross1 != 0) normcross1[m] = NormalizeDouble(100*(cross1[m]-Mincross1)/(Maxcross1-Mincross1),2);
}
//INDICATORS FOR NORMALISED CROSSES DATA FOR ENTRY AND EXIT TIMING FOR FFS TRADES
//Calculate CCI and Laguerre arrays
if(CCI > 0)
{
for(int g = limit; g>=0; g--)
{
CCI1[g] = iCCIOnArray(normcross1,limit,CCI,g); //Red
Lag1[g] = LaguerreRSI(normcross1[g],Lag1_Gamma);
}
for(int y = limit; y>=0; y--)
{
Lag2[y] = LaguerreRSI(normcross1[y],Lag2_Gamma);
}
}
NormaliseSeries(CCI1,normCCI1,limit);
return(0);
}
//+------------------------------------------------------------------+
//FUNCTIONS
void NormaliseSeries(double& InData[], double& OutData[],
int limit)
{
double nMax= -10000000;
double nMin= 10000000;
for ( int k=0; k<limit;k++)
{
if( InData[k] > nMax) nMax = InData[k];
if( InData[k] < nMin) nMin = InData[k];
}
//Normalise Data btw Min and Max
for(int m=limit; m>=0; m--)
{
if (nMax - nMin != 0) OutData[m] = NormalizeDouble(100*((InData[m]-nMin)/(nMax-nMin)),2);
}
}
// Laguerre calc
double LaguerreRSI(double InData, double gamma)
{
L0A = L0;
L1A = L1;
L2A = L2;
L3A = L3;
L0 = (1 - gamma)* InData + gamma* L0A;
L1 = - gamma * L0 + L0A + gamma * L1A;
L2 = - gamma * L1 + L1A + gamma * L2A;
L3 = - gamma * L2 + L2A + gamma * L3A;
//----
CU = 0;
CD = 0;
//----
if(L0 >= L1)
CU = L0 - L1;
else
CD = L1 - L0;
//----
if(L1 >= L2)
CU = CU + L1 - L2;
else
CD = CD + L2 - L1;
//----
if(L2 >= L3)
CU = CU + L2 - L3;
else
CD = CD + L3 - L2;
//----
if(CU + CD != 0) LRSI = NormalizeDouble((CU / (CU + CD))* 90,2);
return(LRSI);
}
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