i4_DRF_v2_v1
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This tool is designed as a visual indicator for MetaTrader platforms, specifically created to help traders identify momentum and price trends by analyzing the relationship between current prices and historical price points over a specific timeframe.
Core Logic Overview
The script functions by scanning the market history to calculate a "momentum score." Instead of simply looking at where the price is moving in the immediate second, it evaluates the position of the most recent closing prices against a window of previous closing prices (defined by a specific lookback period).
How the Calculation Works
The logic follows a systematic three-step process:
- Data Collection: The script looks back at a set number of historical bars (the default is 21). It focuses on the closing prices of these candles to determine the "strength" of the current movement.
- Comparative Analysis: For every point in time, the script performs a series of comparisons. It compares the price of a specific candle against several preceding candles within that window.
- If the price is higher than the previous candle, it registers as a positive move (incrementing a value).
- If the price is lower than the previous candle, it registers as a negative move (decrementing a value).
- Resulting Visualization: The final result is a numerical value representing the net difference between these "ups" and "downs." This result is then plotted on a separate window below your main trading chart as a red line.
What This Tells the Trader
The resulting line acts as a trend sentiment indicator:
- Positive Values: When the line moves upward, it suggests that, over the analyzed period, the price has consistently closed higher than its immediate predecessors, indicating bullish momentum.
- Negative Values: When the line moves downward, it suggests that prices have been consistently closing lower, indicating bearish momentum.
- Neutrality: When the line hovers near zero, it indicates a lack of clear directional trend, where upward and downward movements are balancing each other out.
By observing the fluctuations of this red line, a trader can better visualize whether the current market trend is strengthening, weakening, or reaching a point of equilibrium.
/*-----------------------------+
| |
| Shared by www.Aptrafx.com |
| |
+------------------------------*/
//+------------------------------------------------------------------+
//| i4_DRF_v2.mq4 |
//| goldenlion@ukr.net |
//| http://GlobeInvestFund.com/ |
//+------------------------------------------------------------------+
#property copyright "Copyright (c) 2005, goldenlion@ukr.net"
#property link "http://GlobeInvestFund.com/"
#property indicator_separate_window
#property indicator_buffers 1
#property indicator_color1 Red
//---- input parameters
//---- buffers
double Buffer1[];
int MyPeriod = 21;
//---------
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
string short_name;
//---- indicator line
SetIndexStyle(0,DRAW_LINE);
SetIndexBuffer(0,Buffer1);
//---- name for DataWindow and indicator subwindow label
short_name="i4_DRF_v1.mq4("+MyPeriod+")";
IndicatorShortName(short_name);
SetIndexLabel(0,short_name);
//----
SetIndexDrawBegin(0,0);
//----
return(0);
}
//+------------------------------------------------------------------+
//|
//+------------------------------------------------------------------+
int start()
{
int d, i, ii, counted_bars=IndicatorCounted();
//----
if( Bars <= MyPeriod ) return(0);
ii=Bars-MyPeriod*1.1;
if( counted_bars >= MyPeriod ) ii=Bars-MyPeriod*1.1;
while( ii>=0 )
{
d=0;
for( i=11 ; i < 21; i++)
if( Close[ii] >= Close[ii+i] ) d=d+1; else d=d-1;
//if d=0 then d=0.0000001;
Buffer1[ii]=d;
ii--;
}
return(0);
}
//+------------------------------------------------------------------+
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