HMA_Color
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This script is designed to function as a specialized technical analysis tool for trading platforms. It calculates and visualizes a "Hull Moving Average," which is a sophisticated type of moving average used by traders to identify price trends with significantly less lag than traditional indicators.
How the Logic Works
The script operates through a multi-layered calculation process to ensure the resulting line on your chart responds quickly to market changes while still remaining smooth. Here is the step-by-step breakdown of that logic:
1. Preliminary Data Smoothing Instead of looking at the raw price immediately, the script first performs a "weighted" calculation. It takes the price data and creates a preliminary set of values based on specific mathematical weights. This helps in balancing the importance of recent price action against older data.
2. Calculating the Difference The tool then calculates the difference between two distinct weighted averages:
- A short-term average (based on half of your chosen period).
- A long-term average (based on the full period selected in the settings). By subtracting the longer average from the shorter one and doubling the result, the script captures the "momentum" or the speed at which the price is moving.
3. Final Smoothing and Trend Detection To make the indicator usable for visual trading, the script takes that momentum data and applies a final smoothing pass. This creates the actual Hull Moving Average line seen on your chart.
Visual Behavior on the Chart
The logic includes specific instructions on how to display this information visually:
- Dynamic Line Drawing: The script is designed to plot lines based on whether the trend is moving upward or downward.
- Trend Identification: It compares the current value of the calculation against its previous value. If the value is increasing, it assigns the data to one specific visual path; if it is decreasing, it shifts to another.
- Visual Filtering: By managing "Empty Values," the script ensures that the chart remains clean. It only displays the relevant data points for the current trend direction, helping traders quickly distinguish between bullish (upward) and bearish (downward) movements without unnecessary visual clutter.
Summary of Purpose
In short, this script transforms raw price noise into a smooth, responsive trend line. It achieves this by calculating the difference in price velocity and then smoothing that result to provide a clear, "lag-reduced" view of where the market is heading.
//| HMA.mq4 |
//| Copyright ?2004, MetaQuotes Software Corp. |
//| http://www.metaquotes.net/ |
//+------------------------------------------------------------------
#property copyright "Copyright ?2004, MetaQuotes Software Corp."
#property link "http://www.metaquotes.net/"
//---- indicator settings
#property indicator_chart_window
#property indicator_buffers 3
#property indicator_color1 Pink
#property indicator_color2 Yellow
#property indicator_color3 LightGreen
//---- indicator parameters
extern int HMA_Period=20;
//---- indicator buffers
double ind_buffer0[];
double ind_buffer1[];
double ind_buffer2[];
double buffer[];
int draw_begin0;
//+------------------------------------------------------------------
//| Custom indicator initialization function |
//+------------------------------------------------------------------
int init()
{
//---- indicator buffers mapping
IndicatorBuffers(4);
if(!SetIndexBuffer(0,ind_buffer0) && !SetIndexBuffer(1,ind_buffer1)
&& !SetIndexBuffer(2,ind_buffer2) && !SetIndexBuffer(3, buffer))
Print("cannot set indicator buffers!");
// ArraySetAsSeries(ind_buffer1,true);
//---- drawing settings
SetIndexStyle(0,DRAW_LINE,STYLE_SOLID,1);
SetIndexStyle(1,DRAW_LINE,STYLE_SOLID,1);
SetIndexStyle(2,DRAW_LINE,STYLE_SOLID,1);
draw_begin0=HMA_Period+MathFloor(MathSqrt(HMA_Period));
SetIndexDrawBegin(0,draw_begin0);
SetIndexDrawBegin(1,draw_begin0);
SetIndexDrawBegin(2,draw_begin0);
IndicatorDigits(MarketInfo(Symbol(),MODE_DIGITS)+1);
//---- name for DataWindow and indicator subwindow label
IndicatorShortName("HMA("+HMA_Period+")");
SetIndexLabel(0,"Hull Moving Average");
//---- initialization done
return(0);
}
//+------------------------------------------------------------------
//| Moving Averages Convergence/Divergence |
//+------------------------------------------------------------------
int start()
{
int limit,i;
int counted_bars=IndicatorCounted();
double tmp, tmpPrevious;
//---- check for possible errors
if(counted_bars<1)
{
for(i=1;i<=draw_begin0;i++) buffer[Bars-i]=0;
for(i=1;i<=HMA_Period;i++)
{
ind_buffer0[Bars-i]=0;
ind_buffer1[Bars-i]=0;
ind_buffer2[Bars-i]=0;
}
}
//---- last counted bar will be recounted
if(counted_bars>0) counted_bars--;
limit=Bars-counted_bars;
//---- MA difference counted in the 1-st buffer
for(i=0; i<limit; i++)
{
buffer[i]=iMA(NULL,0,MathFloor
(HMA_Period/2),0,MODE_LWMA,PRICE_CLOSE,i)*2-
iMA(NULL,0,HMA_Period,0,MODE_LWMA,PRICE_CLOSE,i);
}
//---- HMA counted in the 0-th buffer
tmp=iMAOnArray(buffer,0,MathFloor(MathSqrt
(HMA_Period)),0,MODE_LWMA,0);
for(i=1; i<limit; i++)
{
tmpPrevious=iMAOnArray(buffer,0,MathFloor(MathSqrt
(HMA_Period)),0,MODE_LWMA,i);
if (tmpPrevious > tmp)
{
ind_buffer0[i] = EMPTY_VALUE;
ind_buffer1[i] = EMPTY_VALUE;
ind_buffer2[i] = tmpPrevious;
ind_buffer2[i-1] = tmp; // !
}
else if (tmpPrevious < tmp)
{
ind_buffer0[i] = tmpPrevious;
ind_buffer0[i-1] = tmp; // !
ind_buffer1[i] = EMPTY_VALUE;
ind_buffer2[i] = EMPTY_VALUE;
}
else
{
ind_buffer0[i] = CLR_NONE;
ind_buffer1[i] = tmpPrevious;
ind_buffer2[i-1] = tmp; // !
ind_buffer2[i] = CLR_NONE;
}
tmp = tmpPrevious;
}
//---- done
return(0);
}
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