FlatTrend V3_v1

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Author: Kirk Sloan
FlatTrend V3_v1

The FlatTrend V3 indicator is a sophisticated technical analysis tool designed to interpret market momentum and trend direction by synthesizing multiple data points into a visual histogram. Unlike simple moving averages that only look at price history, this script analyzes the relationship between current price action, historical extremes, and momentum shifts to provide a clearer picture of market "flow."

Core Logic and Methodology

The logic of the FlatTrend V3 can be broken down into three primary components:

1. Price Contextualization The indicator begins by establishing a "zone" of activity. It identifies the highest highs and lowest lows over a specific user-defined period. By comparing the current price against these extremes, the script determines where the market currently sits within its recent range. This helps the tool understand if the price is currently compressed, expanding, or hovering near significant historical boundaries.

2. Momentum Analysis (ADX Integration) The script utilizes a modified approach to momentum by comparing two different "speeds" of movement (represented by ADX values). By checking whether the current momentum is accelerating or decelerating compared to its immediate past, the indicator can distinguish between a strong, healthy trend and a weakening price move that might be about to reverse.

3. The "Fish" Calculation & Smoothing At the heart of the script is a custom mathematical formula (internally referred to as "Fish"). This calculation combines the relative position of the price with smoothed historical data. It uses logarithmic scaling to dampen out market "noise" and ensure that the resulting values are fluid rather than erratic. This results in a stabilized value that represents the underlying strength of the trend.

Signal Interpretation

The indicator translates these complex calculations into five distinct visual buffers (histograms), which allow traders to see different facets of the market simultaneously:

  • Trend Confirmation: It looks for "agreement" between the momentum speeds and the calculated trend strength. If the momentum is increasing while the trend strength is positive, it signals a bullish bias; if both are decreasing/negative, it signals a bearish bias.
  • Divergence Detection: The logic is designed to highlight situations where momentum and price action might be telling different stories. For instance, if the price is moving in one direction but the momentum "speed" is slowing down (NADX > PADX), the indicator provides a visual cue that the current move may be losing steam.
  • Neutrality Handling: The script includes specific logic to handle "flat" markets—periods where the trend strength is near zero—providing different visual outputs based on whether momentum is tilting upwards or downwards.

Summary for the User

In essence, FlatTrend V3 acts as a multi-layered filter. It takes raw price data, compares it to recent highs and lows, calculates the "speed" of the move, and then smooths all that information into a readable visual format. This allows you to see not just where the price is going, but the intensity and reliability behind that movement.

Price Data Components
Series array that contains the highest prices of each barSeries array that contains the lowest prices of each barSeries array that contains open prices of each barSeries array that contains close prices for each bar
Indicators Used
Movement directional index
Miscellaneous
Implements a curve of type %1
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FlatTrend V3_v1 
/*-----------------------------+
|			       |
| Shared by www.Aptrafx.com    |
|			       |
+------------------------------*/

//+------------------------------------------------------------------+
//|                                                  FlatTrendV3.mq4 |
//|                                                       Kirk Sloan |
//|                                        http://www.metaquotes.net |
//+------------------------------------------------------------------+
#property copyright "Kirk Sloan"
#property link      "ksfx@kc.rr.com"

#property indicator_separate_window
#property indicator_minimum 0
#property indicator_maximum 1
#property indicator_buffers 4
#property indicator_color1 Red
#property indicator_color2 LimeGreen
#property indicator_color3 Salmon
#property indicator_color4 LightGreen //added
#property indicator_color5 Orange //added
#property indicator_width1 2 //added
#property indicator_width2 2 //added
#property indicator_width3 1 //added
#property indicator_width4 1 //added
#property indicator_width5 1 //added
//---- input parameters
extern int Minutes=5;
extern int period=30;
extern int price=6; // 0 or other = (H+L)/2
                    // 1 = Open
                    // 2 = Close
                    // 3 = High
                    // 4 = Low
                    // 5 = (H+L+C)/3
                    // 6 = (O+C+H+L)/4
                    // 7 = (O+C)/2

//---- buffers
double ExtMapBuffer1[];
double ExtMapBuffer2[];
double ExtMapBuffer3[];
double ExtMapBuffer4[];
double ExtMapBuffer5[];
double Ma;
double hhigh, llow;
double PADX,NADX;
string TimeFrameStr;
double _price;
double MinL=0;
double MaxH=0;

double Value=0,Value1=0,Value2=0,Fish=0,Fish1=0,Fish2=0; 
//+------------------------------------------------------------------+
//| Custom indicator initialization function                         |
//+------------------------------------------------------------------+
int init()
  {
//---- indicators
  IndicatorBuffers(5);
  SetIndexStyle(0,DRAW_HISTOGRAM,STYLE_SOLID,2); //modified
  SetIndexBuffer(0,ExtMapBuffer1);
  SetIndexStyle(1,DRAW_HISTOGRAM,STYLE_SOLID,2); //modified
  SetIndexBuffer(1,ExtMapBuffer2);
  SetIndexStyle(2,DRAW_HISTOGRAM,STYLE_SOLID,1); //modified
  SetIndexBuffer(2,ExtMapBuffer3);
  SetIndexStyle(3,DRAW_HISTOGRAM,STYLE_SOLID,1); //modified
  SetIndexBuffer(3,ExtMapBuffer4);
  SetIndexLabel(0,NULL); //added
  SetIndexLabel(1,NULL); //added
  SetIndexLabel(2,NULL); //added
  SetIndexLabel(3,NULL); //added
  SetIndexLabel(4,NULL); //added

switch(Minutes)
   {
      case 1 : TimeFrameStr="Period_M1"; break;
      case 5 : TimeFrameStr="Period_M5"; break;
      case 15 : TimeFrameStr="Period_M15"; break;
      case 30 : TimeFrameStr="Period_M30"; break;
      case 60 : TimeFrameStr="Period_H1"; break;
      case 240 : TimeFrameStr="Period_H4"; break;
      case 1440 : TimeFrameStr="Period_D1"; break;
      case 10080 : TimeFrameStr="Period_W1"; break;
      case 43200 : TimeFrameStr="Period_MN1"; break;
      default : TimeFrameStr="Current Timeframe"; Minutes=0;
   }
   IndicatorShortName("Flat Trend V3("+TimeFrameStr+")");  //modified

//----
   return(0);
  }
//+------------------------------------------------------------------+
//| Custom indicator deinitialization function                       |
//+------------------------------------------------------------------+
int deinit()
  {
//----
   
//----
   return(0);
  }
//+------------------------------------------------------------------+
//| Custom indicator iteration function                              |
//+------------------------------------------------------------------+
int start()
  {
   int    counted_bars=IndicatorCounted();
//----

for (int i = 800; i > -1; i--){
   ExtMapBuffer1[i]=0;
   ExtMapBuffer2[i]=0;
   ExtMapBuffer3[i]=0;
   ExtMapBuffer4[i]=0;
   ExtMapBuffer5[i]=0;
   
   PADX=iADX(NULL,Minutes,14 ,PRICE_CLOSE,1,i);
   NADX=iADX(NULL,Minutes,14 ,PRICE_CLOSE,2,i);

  // MaxH = High[Highest(NULL,Minutes,MODE_HIGH,period,i)];
  // MinL = Low[Lowest(NULL,Minutes,MODE_LOW,period,i)];
  
   MaxH = iHigh(NULL, Minutes,Highest(NULL,Minutes,MODE_HIGH,period,i));
   MinL = iLow(NULL, Minutes,Lowest(NULL,Minutes,MODE_LOW,period,i));
  
  
   _price = (iHigh(NULL,Minutes,i)+iLow(NULL,Minutes,i))/2;
   
    if(price == 1) _price = iOpen(NULL,Minutes,i);
    if(price == 2) _price = iClose(NULL,Minutes,i);
    if(price == 3) _price = iHigh(NULL,Minutes,i); 
    if(price == 4) _price = iLow(NULL,Minutes,i);
    if(price == 5) _price = (iHigh(NULL,Minutes,i)+iLow(NULL,Minutes,i)+iClose(NULL,Minutes,i))/3;
    if(price == 6) _price = (iOpen(NULL,Minutes,i)+iHigh(NULL,Minutes,i)+iLow(NULL,Minutes,i)+iClose(NULL,Minutes,i))/4; 
    if(price == 7) _price = (iOpen(NULL,Minutes,i)+iClose(NULL,Minutes,i))/2; 
     
   Value = 0.33*2*((_price-MinL)/(MaxH-MinL)-0.5) + 0.67*Value1;     
   Value=MathMin(MathMax(Value,-0.999),0.999); 
   Fish = 0.5*MathLog((1+Value)/(1-Value)) -0.5*Fish1 -0.5*Fish2;

   if (Fish > 0 && PADX > NADX){    
      ExtMapBuffer2[i] = 1;
      }
   
   if (Fish > 0 && NADX > PADX){    
      ExtMapBuffer4[i] = 1;
      }   
   
   if (Fish < 0 && NADX > PADX){ 
      ExtMapBuffer1[i] = 1;
         }
   
   if (Fish < 0 && PADX > NADX){ 
      ExtMapBuffer3[i] = 1;
         }
         
   if (ExtMapBuffer1[i] == 0 && ExtMapBuffer2[i] == 0){
      //ExtMapBuffer3[i] = 1;
      }
      
   if (Fish == 0 && PADX > NADX){
      ExtMapBuffer2[i] = 1;
      }
   if (Fish == 0 && PADX < NADX){
      ExtMapBuffer1[i] = 1;
      }  

   Value1 = Value;
   Fish2 = Fish1;  
   Fish1 = Fish;  
}
 
//----
   return(0);
  }
//+------------------------------------------------------------------+

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