FractalChannel_v1
Download script
The FractalChannel tool is designed to provide traders with a visual representation of market structure by identifying key price boundaries. Instead of relying on simple moving averages or basic trend lines, this script analyzes price "fractals"—specific peak and valley formations that indicate significant turning points in the market.
Core Logic and Functionality
The primary goal of this indicator is to dynamically draw an upper boundary, a lower boundary, and a midline based on the most recent significant price extremes. Here is a breakdown of how it processes data:
1. Identifying Price Extremes (Fractals) The script scans historical price data to find "fractals." Depending on the settings chosen by the user, the tool looks for different levels of structural significance:
- Standard Mode: Identifies immediate peaks and valleys based on neighboring candles.
- Extended Modes: Looks further back into the history to identify more significant major highs and lows, filtering out minor market noise.
2. Dynamic Boundary Calculation Once a significant high (peak) and low (valley) are identified, the script establishes a "channel."
- Upper Channel: Tracks the ceiling of the current price action.
- Lower Channel: Tracks the floor of the current price action.
- Middle Channel: Automatically calculates the exact midpoint between the upper and lower boundaries.
3. Customization Options The logic includes several variables that allow users to tailor the behavior of the channel:
- Channel Type: Determines the "sensitivity" of the fractal detection (whether to look for local peaks or major structural swings).
- Open/Close Logic: Allows the user to choose whether the indicator should calculate boundaries based on the actual High/Low of a candle or the specific Open/Close prices.
- Margins: Provides a way to adjust the visual placement of the lines relative to the identified price extremes.
How it Assists the Trader
By visualizing these boundaries, the script helps traders identify "zones of interest." The Upper Channel represents resistance where price might struggle to break higher, the Lower Channel represents support where price might find a floor, and the Middle Channel acts as a visual equilibrium point. As new price highs or lows are formed, the fractal logic automatically updates these boundaries to reflect the most current market structure.
//+------------------------------------------------------------------+
//| FractalChannel_v1.mq4 |
//| Copyright © 2005, TrendLaboratory Ltd. |
//| E-mail: igorad2004@list.ru |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2005, TrendLaboratory Ltd."
#property link "E-mail: igorad2004@list.ru"
#property indicator_chart_window
#property indicator_buffers 3
#property indicator_color1 DodgerBlue
#property indicator_color2 DodgerBlue
#property indicator_color3 DodgerBlue
//---- input parameters
extern int ChannelType=1;
extern double Margins=0;
extern double Advance=0;
extern int OpenClose=0;
//---- buffers
double UpBuffer[];
double DnBuffer[];
double MdBuffer[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
string short_name;
//---- indicator line
SetIndexStyle(0,DRAW_LINE);
SetIndexStyle(1,DRAW_LINE);
SetIndexStyle(2,DRAW_LINE,2);
SetIndexBuffer(0,UpBuffer);
SetIndexBuffer(1,DnBuffer);
SetIndexBuffer(2,MdBuffer);
//---- name for DataWindow and indicator subwindow label
short_name="Fractal Channel("+ChannelType+")";
IndicatorShortName(short_name);
SetIndexLabel(0,"Up Channel");
SetIndexLabel(1,"Down Channel");
SetIndexLabel(2,"Middle Channel");
//----
SetIndexDrawBegin(0,2*ChannelType);
SetIndexDrawBegin(1,2*ChannelType);
SetIndexDrawBegin(2,2*ChannelType);
//----
return(0);
}
//+------------------------------------------------------------------+
//| FractalChannel_v1 |
//+------------------------------------------------------------------+
int start()
{
int shift;
double v1,v2,smax,smin,
High0,High1,High2,High3,High4,High5,High6,
Low0,Low1,Low2,Low3,Low4,Low5,Low6;
for (shift=Bars-1-2*ChannelType;shift>=0;shift--)
{
v1=-1;
v2=-1;
High0=High[shift];
High1=High[shift+1];
High2=High[shift+2];
High3=High[shift+3];
High4=High[shift+4];
High5=High[shift+5];
High6=High[shift+6];
Low0=Low[shift];
Low1=Low[shift+1];
Low2=Low[shift+2];
Low3=Low[shift+3];
Low4=Low[shift+4];
Low5=Low[shift+5];
Low6=Low[shift+6];
if (OpenClose>0)
{
High0=MathMax(Close[shift],Open[shift]);
High1=MathMax(Close[shift+1],Open[shift+1]);
High2=MathMax(Close[shift+2],Open[shift+2]);
High3=MathMax(Close[shift+3],Open[shift+3]);
High4=MathMax(Close[shift+4],Open[shift+4]);
High5=MathMax(Close[shift+5],Open[shift+5]);
High6=MathMax(Close[shift+6],Open[shift+6]);
Low0=MathMin(Close[shift],Open[shift]);
Low1=MathMin(Close[shift+1],Open[shift+1]);
Low2=MathMin(Close[shift+2],Open[shift+2]);
Low3=MathMin(Close[shift+3],Open[shift+3]);
Low4=MathMin(Close[shift+4],Open[shift+4]);
Low5=MathMin(Close[shift+5],Open[shift+5]);
Low6=MathMin(Close[shift+6],Open[shift+6]);
}
if (ChannelType==1)
{
if (High2<=High1 && High0<High1) v1=High1;
if (Low2>=Low1 && Low0>Low1) v2=Low1;
}
if (ChannelType==2)
{
if (High4<=High2 && High3<=High2 && High0<High2 && High1<High2)
v1=High2;
if (Low4>=Low2 && Low3>=Low2 && Low0>Low2 && Low1>Low2)
v2=Low2;
}
if (ChannelType==3)
{
if (High6<=High3 && High5<=High3 && High4<=High3 &&
High0<High3 && High1<High3 && High2<High3)
v1=High3;
if (Low6>=Low3 && Low5>=Low3 && Low4>=Low3 &&
Low0>Low3 && Low1>Low3 && Low2>Low3)
v2=Low3;
}
if ( v1>0 ) smax=v1;
if (High0>smax) smax=High0;
if ( v2>0 ) smin=v2;
if (Low0<smin) smin=Low0;
if (shift==Bars-1-2*ChannelType) {smin=Low0;smax=High0;}
UpBuffer[shift]=smax-(smax-smin)*Margins;
DnBuffer[shift]=smin+(smax-smin)*Margins;
MdBuffer[shift]=(UpBuffer[shift]+DnBuffer[shift])/2;
}
return(0);
}
//+------------------------------------------------------------------+
Comments