FX_Sniper's_Ergodic_CCI
Download script
This technical tool, titled the FX Sniper Ergo/CCI, is designed to provide traders with a specialized visual representation of market momentum and volatility. Rather than relying on a single standard indicator, it combines several mathematical layers to smooth out market "noise" and highlight significant trends.
How the Logic Works
The script functions by processing price data through three distinct stages:
1. Momentum Tracking (The "Ergo" Component) The tool begins by measuring the change between consecutive closing prices. It then takes these movements and applies a series of "Exponential Moving Averages" (EMA). By layering multiple averages on top of one another, the script filters out minor price fluctuations (volatility) to reveal the underlying direction of the trend.
2. Volatility Measurement Parallel to the momentum tracking, the tool calculates the absolute value of price changes. This allows the logic to identify how much "force" is behind a move, regardless of whether that move is up or down. By measuring these magnitudes, the tool can distinguish between high-activity periods and slow, sideways markets.
3. Combined Synthesis (The Final Output) The final visual data presented on your chart is a customized ratio. The script divides the smoothed momentum by its corresponding volatility component and applies a specific multiplier. This creates a unique "Ergo CCI" value.
Key Takeaways for Traders
- Noise Reduction: By using multiple layers of moving averages, the indicator aims to prevent traders from reacting to "fake" price spikes that don't have actual momentum behind them.
- Trend Clarity: The resulting output is intended to provide a clearer picture of market strength than a standard Commodity Channel Index (CCI) alone, as it balances the speed of the move against the stability of the trend.
- Dual Perspectives: Because it tracks both direction (momentum) and intensity (volatility) simultaneously, it provides a more holistic view of current market conditions in a single window.
//+------------------------------------------------------------------+
//| Louw Coetzer aka FX Sniper |
//| Copyright © 2004, MetaQuotes Software Corp. |
//| http://www.metaquotes.net/ |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2004, Fx Sniper."
#property link "http://www.dunno.net/"
//---- indicator settings
#property indicator_separate_window
#property indicator_buffers 2
#property indicator_color1 Black
#property indicator_color2 Red
#property indicator_color3 Green
// Ergo Variables
extern int pq =2;
extern int pr=14;
extern int ps=5;
extern int CCI_period=14;
//---- indicator buffers
double mtm[];
double absmtm[];
double ErgoCCI[];
double MainCCI[];
double var1[];
double var2[];
double var2a[];
double var2b[];
//double valor1[];
//double valor2[];
//double extvar[];
//double cciSignal[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- 2 additional buffers are used for counting.
IndicatorBuffers(8);
//---- drawing settings
SetIndexStyle(0,DRAW_LINE,STYLE_SOLID,2,White);
SetIndexStyle(1,DRAW_LINE,STYLE_SOLID,1,Yellow);
SetIndexBuffer(0,ErgoCCI);
SetIndexBuffer(1,MainCCI);
SetIndexBuffer(2,mtm);
SetIndexBuffer(3,var1);
SetIndexBuffer(4,var2);
SetIndexBuffer(5,absmtm);
SetIndexBuffer(6,var2a);
SetIndexBuffer(7,var2b);
//---- name for DataWindow and indicator subwindow label
IndicatorShortName("FX Sniper Ergo/CCI ");
//---- initialization done
return(0);
}
//+------------------------------------------------------------------+
//| Calculations |
//+------------------------------------------------------------------+
int start()
{
int limit;
int i;
int counted_bars=IndicatorCounted();
//---- 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;
//---- main loop
for(i=0; i<limit; i++)
{
MainCCI[i]=iCCI(NULL,0,CCI_period,PRICE_TYPICAL,i);
}
//---- done
for(i=0; i<=Bars; i++)
{
mtm[i]= Close[i]- Close[i +1];
}
for(i=0; i<=Bars-1; i++)
{
absmtm[i]= MathAbs(mtm[i]);
}
for(i=0; i<=Bars-1; i++)
{
var1[i]= iMAOnArray(mtm,0,pq,0,MODE_EMA,i);
}
for(i=0; i<=Bars-1; i++)
{
var2[i]= iMAOnArray(var1,Bars,pr,0,MODE_EMA,i);
}
//for(i=0; i <= Bars-1; i++)
//{
//extvar[i]= iMAOnArray(var2,0,ps,0,MODE_EMA,i);
//}
// for(i=0; i <= Bars-1; i++)
// {
// var2a[i] = 400 * extvar[i]; // FINAL Batch 1
// }
for(i=0; i<=Bars-1; i++)
{
var2a[i]= iMAOnArray(absmtm,0,pq,0,MODE_EMA,i);
}
for(i=0; i<=Bars-1; i++)
{
var2b[i]= iMAOnArray(var2a,0,pr,0,MODE_EMA,i);
}
for(i=0; i<=Bars-1; i++)
{
ErgoCCI[i]=(450 * iMAOnArray(var2,0,ps,0,MODE_EMA,i))/(iMAOnArray(var2b,0,ps,0,MODE_EMA,i)); //var2a[i]/var2b[i];
//ErgoCCI[i] = var2a[i];
}
return(0);
}
//+------------------------------------------------------------------+
Comments