Hist_StepMA_Stoch_KV1_Ex_034

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Author: Copyright � 2005, TrendLaboratory Ltd.
Hist_StepMA_Stoch_KV1_Ex_034

This script is a custom technical analysis tool designed to visualize market trends and volatility. Instead of simply showing price movements, it translates raw market data into a visual "histogram" that helps identify the strength and direction of current momentum.

Here is a breakdown of the logic used by the tool:

Volatility Calculation

The core logic begins by assessing the "personality" of the recent market price action. The script looks back over a specific number of bars to calculate a weighted range of price movement (Highs and Lows). By applying different weights to recent data, it creates a dynamic understanding of how much the market is currently "swinging." It tracks the maximum and minimum swings over time to establish a baseline for what constitutes a significant move.

Dynamic Step Boundaries

Using the volatility data mentioned above, the tool establishes three distinct "thresholds" or "zones":

  • Minimum Zone: Based on smaller, more conservative price fluctuations.
  • Maximum Zone: Based on larger, more aggressive price movements.
  • Mid Zone: A balanced middle ground between the two.

Depending on your settings, the script determines whether to base these zones on the absolute High/Low prices of a candle or on the Closing price.

Trend Identification

The script continuously checks where the current market price sits in relation to these three zones:

  1. It determines if the trend is "Strong," "Moderate," or "Weak."
  2. If the price breaks above certain thresholds, it registers a positive trend; if it drops below, it registers a negative trend.
  3. The tool employs a "memory" mechanism—it remembers previous price levels to ensure that the trend boundaries move logically and do not jump erratically, providing a smoother visual experience for the user.

Momentum Conversion (The Visual Output)

Once the trends are identified, the script converts these positions into a normalized numerical value (similar to how a Stochastic Oscillator works). It calculates the distance between the current trend line and the boundaries of the "Maximum Zone."

The final output is displayed as a two-part histogram:

  • Positive Value: If the momentum is upward, a green histogram appears showing the strength of that move.
  • Negative Value: If the momentum is downward, a red histogram appears indicating the intensity of the decline.

Summary for the User

In simple terms, this script filters out the "noise" of constant price ticks. It looks at how much the market is swinging, defines what a "big" or "small" move looks like for that specific asset, and then draws a visual representation of where the current price sits relative to those moves. This allows you to see at a glance whether the market is pushing strongly in one direction or if it is struggling to maintain momentum.

Miscellaneous
Implements a curve of type %1
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Hist_StepMA_Stoch_KV1_Ex_034 
//+------------------------------------------------------------------+
//|                                             StepMA_Stoch_KV1.mq4 |
//|                           Copyright © 2005, TrendLaboratory Ltd. |
//|                                       E-mail: igorad2004@list.ru |
//|                           modified by Kalenzo -> simone@konto.pl |
//|                           modified by raduga  21.04.2006         |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2005, TrendLaboratory Ltd."
#property link      "E-mail: igorad2004@list.ru"

#property indicator_separate_window
#property indicator_buffers 2
#property indicator_color1 Red
#property indicator_color2 Green

//#property indicator_minimum -1
//#property indicator_maximum 1

//---- input parameters
extern int PeriodWATR=10;
extern double Kwatr=1.0000;
extern int HighLow=0;
extern int NumberOfBarsToCalculate = 500;
//---- indicator buffers
double LineMinBuffer[];
double LineMidBuffer[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function                         |
//+------------------------------------------------------------------+
  int init()
  {
 Comment("");
//---- indicator line
   SetIndexStyle(0,DRAW_HISTOGRAM,STYLE_SOLID,2);
   SetIndexStyle(1,DRAW_HISTOGRAM,STYLE_SOLID,2);
   SetIndexBuffer(0,LineMinBuffer);
   SetIndexBuffer(1,LineMidBuffer);
   IndicatorDigits(MarketInfo(Symbol(),MODE_DIGITS));
//---- name for DataWindow and indicator subwindow label
   //short_name="StepMA Stoch("+PeriodWATR+","+Kwatr+","+HighLow+")";
   
   SetIndexLabel(0,"StepMA Stoch 1");
   SetIndexLabel(1,"StepMA Stoch 2");
//----
   SetIndexDrawBegin(0,PeriodWATR);
   SetIndexDrawBegin(1,PeriodWATR);
   /**
   *raduga:
   *USELESS !!!! Throws "ArrayInitialization" Exception !!!!
   **/
   //======================================================
   //ArrayInitialize(LineMinBuffer,0);
   //ArrayInitialize(LineMidBuffer,0);
   SetIndexEmptyValue(0,0.0);
   SetIndexEmptyValue(1,0.0);
   //=====================================================
//----
   return(0);
  }

//+------------------------------------------------------------------+
//| StepMA_3D_v1                                                         |
//+------------------------------------------------------------------+
int start()
  {
      string short_name;
      short_name = "Max bars to count: |"+(Bars-1)+"| ";
      IndicatorShortName(short_name);

   int      i,shift,TrendMin,TrendMax,TrendMid;
   double   SminMin0,SmaxMin0,SminMin1,SmaxMin1,SumRange,dK,WATR0,WATRmax,WATRmin,WATRmid;
   double   SminMax0,SmaxMax0,SminMax1,SmaxMax1,SminMid0,SmaxMid0,SminMid1,SmaxMid1;
   double   linemin,linemax,linemid,Stoch1,Stoch2,bsmin,bsmax;
   //raduga : Variable theDelta - has a differense between two bsmin/max lines
   double theDelta;
   
   double prev_y = 0,prev_b = 0;
   	
   for(shift=NumberOfBarsToCalculate-1;shift>=0;shift--)
   {	
	SumRange=0;
	//raduga: initialization because of ZERO-DEVIDE ERROR
	//===============================
	Stoch1 = 0.0;
	Stoch2 = 0.0;
	//===============================
	for (i=PeriodWATR-1;i>=0;i--)
	    { 
       dK = 1+1.0*(PeriodWATR-i)/PeriodWATR;
       //raduga: MathAbs has no sense ragarding High - Low... Probably Close - open !!!!
       //SumRange+= dK*MathAbs(High[i+shift]-Low[i+shift]);
       SumRange+= dK*(High[i+shift]-Low[i+shift]);
       }
	WATR0 = SumRange/PeriodWATR;
	
	WATRmax=MathMax(WATR0,WATRmax);
	if (shift==NumberOfBarsToCalculate-1-PeriodWATR) WATRmin=WATR0;
	WATRmin=MathMin(WATR0,WATRmin);
	
	int StepSizeMin=MathRound(Kwatr*WATRmin/Point);
	int StepSizeMax=MathRound(Kwatr*WATRmax/Point);
	int StepSizeMid=MathRound(Kwatr*0.5*(WATRmax+WATRmin)/Point);
		
	if (HighLow>0)
	  {
	  SmaxMin0=Low[shift]+2*StepSizeMin*Point;
	  SminMin0=High[shift]-2*StepSizeMin*Point;
	  
	  SmaxMax0=Low[shift]+2*StepSizeMax*Point;
	  SminMax0=High[shift]-2*StepSizeMax*Point;
	  
	  SmaxMid0=Low[shift]+2*StepSizeMid*Point;
	  SminMid0=High[shift]-2*StepSizeMid*Point;
	  
	  if(Close[shift]>SmaxMin1) TrendMin=1; 
	  if(Close[shift]<SminMin1) TrendMin=-1;
	  
	  if(Close[shift]>SmaxMax1) TrendMax=1; 
	  if(Close[shift]<SminMax1) TrendMax=-1;
	  
	  if(Close[shift]>SmaxMid1) TrendMid=1; 
	  if(Close[shift]<SminMid1) TrendMid=-1;
	  }
	 
	if (HighLow == 0)
	  {
	  SmaxMin0=Close[shift]+2*StepSizeMin*Point;
	  SminMin0=Close[shift]-2*StepSizeMin*Point;
	  
	  SmaxMax0=Close[shift]+2*StepSizeMax*Point;
	  SminMax0=Close[shift]-2*StepSizeMax*Point;
	  
	  SmaxMid0=Close[shift]+2*StepSizeMid*Point;
	  SminMid0=Close[shift]-2*StepSizeMid*Point;
	  
	  if(Close[shift]>SmaxMin1) TrendMin=1; 
	  if(Close[shift]<SminMin1) TrendMin=-1;
	  
	  if(Close[shift]>SmaxMax1) TrendMax=1; 
	  if(Close[shift]<SminMax1) TrendMax=-1;
	  
	  if(Close[shift]>SmaxMid1) TrendMid=1; 
	  if(Close[shift]<SminMid1) TrendMid=-1;
	  }
	 	
	  if(TrendMin>0 && SminMin0<SminMin1) SminMin0=SminMin1;
	  if(TrendMin<0 && SmaxMin0>SmaxMin1) SmaxMin0=SmaxMin1;
		
	  if(TrendMax>0 && SminMax0<SminMax1) SminMax0=SminMax1;
	  if(TrendMax<0 && SmaxMax0>SmaxMax1) SmaxMax0=SmaxMax1;
	  
	  if(TrendMid>0 && SminMid0<SminMid1) SminMid0=SminMid1;
	  if(TrendMid<0 && SmaxMid0>SmaxMid1) SmaxMid0=SmaxMid1;
	  
	  
	  if (TrendMin>0) linemin=SminMin0+StepSizeMin*Point;
	  if (TrendMin<0) linemin=SmaxMin0-StepSizeMin*Point;
	  
	  if (TrendMax>0) linemax=SminMax0+StepSizeMax*Point;
	  if (TrendMax<0) linemax=SmaxMax0-StepSizeMax*Point;
	  
	  if (TrendMid>0) linemid=SminMid0+StepSizeMid*Point;
	  if (TrendMid<0) linemid=SmaxMid0-StepSizeMid*Point;
	  
	  bsmin=linemax-StepSizeMax*Point;
	  bsmax=linemax+StepSizeMax*Point;
	  //raduga: ZERO-DEVIDE-ERROR
	  //=============================
	  theDelta = bsmax-bsmin;
	  if(theDelta != 0) 
	  {
	     Stoch1=NormalizeDouble((linemin-bsmin)/theDelta,6);
	     Stoch2=NormalizeDouble((linemid-bsmin)/theDelta,6);
	  }
	  //==============================   
	  prev_y = (Stoch1 - Stoch2);
	  if(prev_y<0.0){
	     LineMinBuffer[shift] = prev_y;
	     LineMidBuffer[shift] = 0;
	     }
	  else if(prev_y>0.0){
	     LineMidBuffer[shift] = prev_y;
	     LineMinBuffer[shift] = 0;
	     }
	  
	  //prev_y = Stoch1;
	  //prev_b = Stoch2;
	  
	  
	  SminMin1=SminMin0;
	  SmaxMin1=SmaxMin0;
	  
	  SminMax1=SminMax0;
	  SmaxMax1=SmaxMax0;
	  
	  SminMid1=SminMid0;
	  SmaxMid1=SmaxMid0;
	 }
	return(0);	
 }

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