HMA_Color_v3
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This tool is designed to provide a more responsive and smoother way to track price trends on a trading chart compared to standard moving averages. It utilizes a specific mathematical framework known as the Hull Moving Average (HMA) to reduce "lag"—the delay between a price movement and the indicator's reaction.
Core Logic Overview
The script functions by processing market data through three distinct layers of calculation:
1. Weighting the Price Action Instead of simply looking at the average price over a set period, the tool begins by calculating a weighted difference. It compares a shorter timeframe (half of your chosen period) against the full period using a linear weighting system. This step helps the script identify the "momentum" of the price change immediately.
2. Smoothing the Momentum Once the initial difference is calculated, the tool applies a second layer of smoothing. It takes that raw momentum data and runs it through another weighted calculation based on the square root of your chosen period. This specific mathematical step is what allows the indicator to remain smooth while staying very close to the actual price action.
3. Visual Trend Mapping Finally, the script translates these complex numbers into visual signals on your chart:
- Directional Identification: The tool constantly compares the current calculated value against the previous one.
- Dynamic Plotting: It identifies whether the trend is moving up, down, or remaining flat.
- Visual Clarity: Based on these movements, it assigns different colors and styles to the lines. This allows a trader to see at a glance whether the current trend is accelerating, decelerating, or changing direction without the visual "noise" often found in standard technical indicators.
Summary for the User
In simple terms, this script acts as a "smart" trend line. It captures the speed of price movement and smooths out the jagged edges of the market. By using a multi-layered calculation approach, it aims to show you where the trend is heading faster than a standard moving average would allow, helping you identify potential turning points with greater clarity.
//+------------------------------------------------------------------+
//| HMA.mq4 |
//| Copyright © 2000-2007, MetaQuotes Software Corp. |
//| http://www.metaquotes.ru |
//+------------------------------------------------------------------+
#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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