HeikenAshi_DojiSpotter
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Overview
This script is a specialized visual tool designed for traders who use Heiken Ashi price charts. Its primary purpose is to automatically identify and highlight "Doji" candles—specific price formations that often signal market indecision or a potential reversal in trend. By visually distinguishing these candles, the script helps traders spot critical moments where the market momentum might be stalling.
How the Logic Works
The script processes market data to create a customized visual representation of price action. Here is the step-by-step logic:
1. Price Calculation (Heiken Ashi Conversion) Standard price charts show raw "Open, High, Low, and Close" values. This script calculates "Heiken Ashi" values, which are smoothed versions of these prices. It determines the average opening and closing prices to create a cleaner representation of trend direction compared to standard candlestick charts.
2. Identifying the "Doji" The core intelligence of this script lies in its ability to detect a Doji. It looks at the relationship between the "body" of the candle (the difference between the opening and closing price) and the "range" of the candle (the total distance between the highest and lowest points).
- The Threshold: The user can define a specific percentage (the
DojiLevel). - The Logic: If the body of the candle is smaller than a certain percentage of the total range, the script identifies it as a Doji. For example, if the body is very tiny compared to the long "wicks" on the top and bottom, it signals that buyers and sellers are equally matched.
3. Visual Distinction Once the script identifies whether a candle is a standard movement or a Doji, it applies different visual styles:
- Standard Candles: These are displayed using the default color settings (typically Red and White).
- Doji Candles: If the "Spot Dojis" feature is active and a candle meets the Doji criteria, the script overrides the standard colors and paints them in a distinct highlight color (Yellow).
4. Dynamic Real-Time Updating The script continuously scans previous price bars to ensure the chart stays updated as new data comes in. It handles the math of calculating the highs and lows for every bar automatically, ensuring that even if the market moves rapidly, the visual cues remain accurate relative to the current price action.
Summary for Traders
Essentially, this tool acts as an automated "filter." It simplifies your chart by doing the heavy lifting of calculating complex Heiken Ashi averages and then instantly flagging indecision points (Dojis) in a bright, contrasting color. This allows you to see at a glance where the trend might be losing steam without having to manually calculate candle proportions.
//+------------------------------------------------------------------+
//| HeikenAshi_DojiSpotter.mq4 |
//| Copyright c 2004, MetaQuotes Software Corp. |
//| http://www.metaquotes.net |
//| Modified by: Tim Welch |
//+------------------------------------------------------------------+
//| For Heiken Ashi we recommend next chart settings ( press F8 or |
//| select on menu 'Charts'->'Properties...'): |
//| - On 'Color' Tab select 'Black' for 'Line Graph' |
//| - On 'Common' Tab disable 'Chart on Foreground' checkbox and |
//| select 'Line Chart' radiobutton |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2004, MetaQuotes Software Corp. - Modified by Tim Welch"
#property link "http://www.metaquotes.net"
#property indicator_chart_window
#property indicator_buffers 8
#property indicator_color1 Red
#property indicator_color2 White
#property indicator_color3 Red
#property indicator_color4 White
#property indicator_color5 Yellow
#property indicator_color6 Yellow
#property indicator_color7 Yellow
#property indicator_color8 Yellow
#property indicator_width1 1
#property indicator_width2 1
#property indicator_width3 3
#property indicator_width4 3
#property indicator_width5 3
#property indicator_width6 3
#property indicator_width7 1
#property indicator_width8 1
//----
extern string noteSpotDojis = "If this is true, color the Doji differently";
extern bool spotDojis = true;
extern string note1DojiLevel = "If the body of the Heiken-Ashi candle is";
extern string note2DojiLevel = "<= THIS percent of the candles range";
extern double DojiLevel = 10;
// Normal Color
extern color color1 = Red;
extern color color2 = White;
extern color color3 = Red;
extern color color4 = White;
// Doji Color
extern color color5 = Yellow;
extern color color6 = Yellow;
extern color color7 = Yellow;
extern color color8 = Yellow;
//---- buffers
double ExtMapBuffer1[];
double ExtMapBuffer2[];
double ExtMapBuffer3[];
double ExtMapBuffer4[];
double ExtMapBuffer5[];
double ExtMapBuffer6[];
double ExtMapBuffer7[];
double ExtMapBuffer8[];
//----
int ExtCountedBars=0;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//|------------------------------------------------------------------|
int init()
{
//---- indicators
SetIndexStyle(0,DRAW_HISTOGRAM, 0, 1, color1);
SetIndexBuffer(0, ExtMapBuffer1);
SetIndexStyle(1,DRAW_HISTOGRAM, 0, 1, color2);
SetIndexBuffer(1, ExtMapBuffer2);
SetIndexStyle(2,DRAW_HISTOGRAM, 0, 3, color3);
SetIndexBuffer(2, ExtMapBuffer3);
SetIndexStyle(3,DRAW_HISTOGRAM, 0, 3, color4);
SetIndexBuffer(3, ExtMapBuffer4);
SetIndexStyle(4,DRAW_HISTOGRAM, 0, 3, color5);
SetIndexBuffer(4, ExtMapBuffer5);
SetIndexStyle(5,DRAW_HISTOGRAM, 0, 3, color6);
SetIndexBuffer(5, ExtMapBuffer6);
SetIndexStyle(6,DRAW_HISTOGRAM, 0, 1, color7);
SetIndexBuffer(6, ExtMapBuffer7);
SetIndexStyle(7,DRAW_HISTOGRAM, 0, 1, color8);
SetIndexBuffer(7, ExtMapBuffer8);
//----
SetIndexDrawBegin(0,10);
SetIndexDrawBegin(1,10);
SetIndexDrawBegin(2,10);
SetIndexDrawBegin(3,10);
SetIndexDrawBegin(4,10);
SetIndexDrawBegin(5,10);
SetIndexDrawBegin(6,10);
SetIndexDrawBegin(7,10);
// SetIndexDrawBegin(4,10);
//---- indicator buffers mapping
SetIndexBuffer(0,ExtMapBuffer1);
SetIndexBuffer(1,ExtMapBuffer2);
SetIndexBuffer(2,ExtMapBuffer3);
SetIndexBuffer(3,ExtMapBuffer4);
SetIndexBuffer(4,ExtMapBuffer5);
SetIndexBuffer(5,ExtMapBuffer6);
SetIndexBuffer(6,ExtMapBuffer7);
SetIndexBuffer(7,ExtMapBuffer8);
SetIndexEmptyValue(4,EMPTY_VALUE);
SetIndexEmptyValue(5,EMPTY_VALUE);
SetIndexEmptyValue(6,EMPTY_VALUE);
SetIndexEmptyValue(7,EMPTY_VALUE);
if (DojiLevel < 0) { DojiLevel = 10; }
//---- initialization done
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
//---- TODO: add your code here
//----
return(0);
}
//+------------------------------------------------------------------+
bool NewBar()
{
static datetime lastbar;
datetime curbar = Time[0];
if(lastbar!=curbar)
{
lastbar=curbar;
return (true);
}
else
{
return(false);
}
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
double haOpen, haHigh, haLow, haClose;
if(Bars<=10) return(0);
ExtCountedBars=IndicatorCounted();
//---- check for possible errors
if (ExtCountedBars<0) return(-1);
//---- last counted bar will be recounted
if (ExtCountedBars>0) ExtCountedBars--;
int pos=Bars-ExtCountedBars-1;
while(pos>=0)
{
if ( ExtMapBuffer5[pos+1] != EMPTY_VALUE && spotDojis ) {
haOpen=(ExtMapBuffer5[pos+1]+ExtMapBuffer6[pos+1])/2;
} else {
haOpen=(ExtMapBuffer3[pos+1]+ExtMapBuffer4[pos+1])/2;
}
haClose=(Open[pos]+High[pos]+Low[pos]+Close[pos])/4;
haHigh=MathMax(High[pos], MathMax(haOpen, haClose));
haLow=MathMin(Low[pos], MathMin(haOpen, haClose));
if (MathAbs( (haClose-haOpen)/(haHigh-haLow)) <= (DojiLevel/100) && spotDojis) {
if (haOpen<haClose)
{
ExtMapBuffer7[pos]=haLow;
ExtMapBuffer8[pos]=haHigh;
}
else
{
ExtMapBuffer7[pos]=haHigh;
ExtMapBuffer8[pos]=haLow;
}
ExtMapBuffer5[pos]=haOpen;
ExtMapBuffer6[pos]=haClose;
} else {
if (haOpen<haClose)
{
ExtMapBuffer1[pos]=haLow;
ExtMapBuffer2[pos]=haHigh;
}
else
{
ExtMapBuffer1[pos]=haHigh;
ExtMapBuffer2[pos]=haLow;
}
ExtMapBuffer3[pos]=haOpen;
ExtMapBuffer4[pos]=haClose;
}
pos--;
}
//----
return(0);
}
//+------------------------------------------------------------------+
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