This script is designed to display an "envelope" on a trading chart. Think of an envelope as two lines drawn around a central line, indicating potential areas of price fluctuation. Here's how it works:
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Input Parameters: The script starts by allowing the user to customize its behavior through a few key settings.
_maPeriod: This determines the length of the period used to calculate the main moving average, influencing the responsiveness of the envelope to price changes. A larger number smooths out the average, while a smaller number makes it more sensitive.deviation: This setting dictates how far away the upper and lower lines of the envelope are from the central line, expressed as a percentage. A larger deviation creates a wider envelope.price1andprice2: These parameters decide which price data (e.g., open, close, high, low) the script uses for calculations.
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Hull Moving Average (HMA) Calculation:
- The script uses a variation of the moving average called the Hull Moving Average (HMA). The HMA aims to reduce lag compared to traditional moving averages, making it more responsive to recent price movements.
- It calculates two WMAs which are then used to calculate 2 more HMA to calculate the bands
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Envelope Creation:
- The script calculates the "middle line" of the envelope using HMA. This line represents the central tendency of the price over the specified period.
- It then calculates the upper and lower bands by adding and subtracting the specified
deviationpercentage from the "middle line". This creates the visual "envelope" around the price action.
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Visual Display: The script draws the upper and lower bands on the chart as lines. These lines visually represent the envelope around the price, providing a quick visual reference for potential price ranges.
Indicators Used
Miscellaneous
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HMAenv
/*-----------------------------+
| |
| Shared by www.Aptrafx.com |
| |
+------------------------------*/
//+------------------------------------------------------------------+
//| HMA envelope.mq4 |
//| Nick Bilak, beluck[AT]gmail.com |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2006, Nick Bilak"
#property link "http://www.mql4.info"
#property indicator_chart_window
#property indicator_buffers 2
#property indicator_color1 Red
#property indicator_color2 Red
//---- External parameters
extern int _maPeriod=20;
extern double deviation = 0.1;
extern int price1 = PRICE_OPEN;
int price1shift = 0;
int price2shift = 0;
extern int price2 = PRICE_OPEN;
/*
PRICE_CLOSE 0 Close price.
PRICE_OPEN 1 Open price.
PRICE_HIGH 2 High price.
PRICE_LOW 3 Low price.
PRICE_MEDIAN 4 Median price, (high+low)/2.
PRICE_TYPICAL 5 Typical price, (high+low+close)/3.
PRICE_WEIGHTED 6 Weighted close price, (high+low+close+close)/4.
*/
//---- indicator buffers
double _hma[],_wma[],hma[],wma[],b1[],b2[];
//----
int ExtCountedBars=0;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init() {
if (price1!=PRICE_OPEN) price1shift = 1;
if (price2!=PRICE_OPEN) price2shift = 1;
int draw_begin;
string short_name;
IndicatorBuffers(6);
//---- indicator buffers mapping
SetIndexBuffer(0, b1);
SetIndexStyle(0, DRAW_LINE);
SetIndexEmptyValue(0, 0.0);
SetIndexBuffer(1, b2);
SetIndexStyle(1, DRAW_LINE);
SetIndexEmptyValue(1, 0.0);
SetIndexBuffer(2, _hma);
SetIndexEmptyValue(2, 0.0);
SetIndexBuffer(3, _wma);
SetIndexEmptyValue(3, 0.0);
SetIndexBuffer(4, hma);
SetIndexEmptyValue(4, 0.0);
SetIndexBuffer(5, wma);
SetIndexEmptyValue(5, 0.0);
IndicatorDigits(Digits);
//---- initialization done
return(0);
}
int start() {
int i, shift, countedBars=IndicatorCounted();
int maxBars=_maPeriod*2;
int period=_maPeriod;
double sqrtPeriod = MathSqrt(period*1.00);
int halfPeriod=period/2;
if(Bars<_maPeriod) return(-1);
if(countedBars == 0) countedBars = maxBars;
int limit=Bars-countedBars+maxBars;
//---- moving average
double wma1,_wma1;
double wma2,_wma2;
for(i=limit; i>=0; i--) {
_wma1 = iMA(Symbol(), 0, period, 0, MODE_LWMA, price1, i+price1shift);
_wma2 = iMA(Symbol(), 0, halfPeriod, 0, MODE_LWMA, price1, i+price1shift);
_wma[i] = 2.0*_wma2-_wma1;
wma1 = iMA(Symbol(), 0, period, 0, MODE_LWMA, price2, i+price2shift);
wma2 = iMA(Symbol(), 0, halfPeriod, 0, MODE_LWMA, price2, i+price2shift);
wma[i] = 2.0*wma2-wma1;
}
for(i=limit; i>=0; i--) {
_hma[i]=iMAOnArray(_wma, 0, sqrtPeriod, 0, MODE_LWMA, i);
hma[i]=iMAOnArray(wma, 0, sqrtPeriod, 0, MODE_LWMA, i);
b1[i]=_hma[i]+_hma[i]*deviation/100.0;
b2[i]=hma[i]-hma[i]*deviation/100.0;
}
return(0);
}
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