Filter_AO Alert
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This tool is designed as a visual aid for traders to help identify momentum shifts and potential entry points in the financial markets. It functions by analyzing price trends and filtering them into a clear, color-coded visual display.
Core Logic and Mechanism
The script works by performing three main tasks: calculating a trend baseline, determining directional momentum, and generating real-time notifications.
1. Trend Calculation The foundation of the tool is based on a mathematical comparison between two different moving averages. It looks at the recent price history (a short-term average) and compares it against a much longer historical average. The difference between these two values tells the script how fast the price is moving in a specific direction.
2. Momentum Filtering (The Visuals) Instead of showing you raw, messy data, the tool organizes the information into two distinct visual categories:
- Positive Momentum: When the trend is moving upward, the tool highlights this with a Lime color.
- Negative Momentum: When the trend moves downward, it switches to a Red color.
By separating the data this way, the tool allows you to see at a glance whether the current "push" in the market is strengthening or weakening, making it easier to distinguish between active trends and stagnant price action.
3. Signal Identification and Alerts The script is programmed to recognize specific "pivot points"—moments where the momentum changes direction significantly. Specifically:
- Buy Signals: When the trend moves from a downward state into an upward move, the tool triggers a visual color change and sends an automated "Buy" alert.
- Sell Signals: When the trend moves from an upward state into a downward move, it triggers a "Sell" alert.
How to Use This Information
Essentially, this script acts as a momentum filter. Rather than making you guess where the price is headed, it cleans up the market noise and visually signals when the "mood" of the market shifts from bullish to bearish (or vice versa). It provides a streamlined way to track market velocity while providing proactive alerts so you don't have to watch the screen constantly to catch a trend reversal.
//+------------------------------------------------------------------+
//| Filter_AO.mq4 |
//| Copyright © 2004, MetaQuotes Software Corp. |
//| http://www.metaquotes.net/ |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2004, MetaQuotes Software Corp."
#property link "http://www.metaquotes.net/"
#property link "Alert by GOEN"
//---- indicator settings
#property indicator_separate_window
#property indicator_buffers 2
#property indicator_color1 Lime
#property indicator_color2 Red
//---- indicator buffers
double ind_buffer1[];
double ind_buffer2[];
double ind_buffer3[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- 1 additional buffer used for counting.
IndicatorBuffers(3);
//---- drawing settings
SetIndexStyle(0,DRAW_HISTOGRAM,STYLE_SOLID,2);
SetIndexStyle(1,DRAW_HISTOGRAM,STYLE_SOLID,2);
IndicatorDigits(MarketInfo(Symbol(),MODE_DIGITS)+1);
SetIndexDrawBegin(0,34);
SetIndexDrawBegin(1,34);
//---- 3 indicator buffers mapping
if(!SetIndexBuffer(0,ind_buffer1) &&
!SetIndexBuffer(1,ind_buffer2) &&
!SetIndexBuffer(2,ind_buffer3))
Print("cannot set indicator buffers!");
//---- name for DataWindow and indicator subwindow label
IndicatorShortName("Filter_AO");
//---- initialization done
return(0);
}
//+------------------------------------------------------------------+
//| Awesome Oscillator |
//+------------------------------------------------------------------+
int start()
{
int limit;
int counted_bars=IndicatorCounted();
double prev,current;
static datetime lastalert;
//---- 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;
//---- macd counted in the 1-st additional buffer
for(int i=0; i<limit; i++)
ind_buffer3[i]=iMA(NULL,0,15,0,MODE_EMA,PRICE_CLOSE,i)-iMA(NULL,0,102,0,MODE_EMA,PRICE_CLOSE,i);
//---- dispatch values between 2 buffers
bool up=true;
for(i=limit-1; i>=0; i--)
{
current=ind_buffer3[i];
prev=ind_buffer3[i+1];
if(current>prev) up=true;
if(current<prev) up=false;
if(!up)
{
ind_buffer2[i]=current;
ind_buffer1[i]=0.0;
}
else
{
ind_buffer1[i]=current;
ind_buffer2[i]=0.0;
}
}
if (ind_buffer3[0]>ind_buffer3[1] && ind_buffer3[1]<ind_buffer3[2] && lastalert!=Time[0])
{ Alert("Buy (Change Color)" +Symbol());
lastalert=Time[0];
}
if (ind_buffer3[0]<ind_buffer3[1] && ind_buffer3[1]>ind_buffer3[2] && lastalert!=Time[0])
{ Alert("Sell (Change Color)" +Symbol());
lastalert=Time[0];
}
//---- done
return(0);
}
//+------------------------------------------------------------------+
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