ICWR_v3
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Technical Overview: ICWR Indicator Logic
This script is designed to automatically identify significant price movements (waves) on a trading chart and provide visual markers for key structural levels. It functions by analyzing historical price data to filter out minor market "noise" and highlighting meaningful trends.
Core Operational Logic
1. High and Low Point Identification The script scans the market history using a specific lookback window (defined by the Depth parameter). Its primary goal is to identify "peak" highs and "trough" lows.
- It looks for price points that are significantly different from those immediately preceding them.
- If a new high or low is found, it checks a small buffer of previous bars; if those previous bars were higher (in the case of a low) or lower (in the case of a high), it "cleans" that data to ensure only the absolute structural turning points are recorded.
2. Wave Filtering and Confirmation Not every price movement is considered a "wave" by this script. To ensure accuracy, it employs a height requirement.
- The logic evaluates the distance between two identified structural points (a high and a low).
- Only if the vertical distance between these two points exceeds a specific threshold (the Wave Height) does the script recognize it as a valid market move. This prevents small, insignificant fluctuations from triggering visual alerts.
3. Visual Trend Mapping Once a valid wave is confirmed, the script performs three automated actions on your chart:
- Trend Line Drawing: It draws a solid trend line connecting the start and end of the most recent significant wave. This helps visualize the direction and momentum of the current market move.
- Dynamic Fibonacci Retracement: The script automatically calculates and places a Fibonacci Retracement tool based on that specific wave. It uses standard golden ratios (such as 0.5, 0.618, etc.) to show potential areas where the price might pull back or react.
- Real-Time Updates: As new price data arrives, the script continuously recalculates these positions, moving the trend line and Fibonacci levels to stay current with the most recent confirmed market structure.
Summary of User Experience
For a trader, this means the indicator acts as an automated structural analyst. Instead of manually clicking points on a chart to see where a trend started or where Fibonacci levels might lie, the script identifies the "meat" of the move for you, drawing the lines and calculation zones automatically based on the market's actual behavior.
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ICWR_v3
//+------------------------------------------------------------------+
//| ICWR indicator |
//| Copyright © 2005, John Lotoski |
//| mailto:john@fayandjohn.com |
//| |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2005, john@fayandjohn.com"
#property link "mailto:john@fayandjohn.com"
#property indicator_chart_window
#property indicator_buffers 1
#property indicator_color1 Blue
//---- indicator parameters
extern int ExtDepth=12;
extern int ExtDeviation=5;
extern int ExtBackstep=3;
extern int RequiredWaveHeight=40;
//---- indicator buffers
double ExtMapBuffer[];
double ExtMapBuffer2[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
IndicatorBuffers(2);
//---- drawing settings
SetIndexStyle(0,DRAW_SECTION);
//---- indicator buffers mapping
SetIndexBuffer(0,ExtMapBuffer);
SetIndexBuffer(1,ExtMapBuffer2);
SetIndexEmptyValue(0,0.0);
ArraySetAsSeries(ExtMapBuffer,true);
ArraySetAsSeries(ExtMapBuffer2,true);
//---- indicator short name
IndicatorShortName("ICWR("+ExtDepth+","+ExtDeviation+","+ExtBackstep+")");
//---- initialization done
return(0);
}
//+------------------------------------------------------------------+
//| Custor indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit() // Removes all lines and text
{ // from the chart upon removal
// of the indicator
ObjectDelete("ActiveWave");
ObjectDelete("Fibo");
return(0);
}
//+------------------------------------------------------------------+
//| Main function |
//+------------------------------------------------------------------+
int start()
{
int shift,back,lasthighpos,lastlowpos,LastActivePos;
double val,res;
double curlow,curhigh,lasthigh,lastlow,LastActive;
int AWStartPos, AWEndPos;
double AWStart, AWEnd;
double FiboL, FiboH, FiboLC, FiboLR, FiboHR, FiboHC, FiboHL2;
for(shift=Bars-ExtDepth; shift>=0; shift--)
{
// The beginning code of this for loop is dedicated
// to finding a low endpoint of a zig-zag
val=Low[Lowest(NULL,0,MODE_LOW,ExtDepth,shift)];
// Start at beginning of data
// - Get low of last depth (12) periods
// - Repeat low search of 12 periods,
// advancing 1 bar every search (for loop)
if(val==lastlow) // If this is not a new low
val=0.0; // - Reset the val marker to dbl 0
else // Otherwise, if it is a new low
{
lastlow=val; // - Record this new low in lastlow for future reference
if((Low[shift]-val)>(ExtDeviation*Point))
val=0.0; // If the low of the current bar is 6 or
// more pips greater than the lowest low of the last
// depth (12) periods, then reset val to dbl 0.
// Ie: continue the zig because the line is going up
else // Otherwise, if the current low is within 6 pips
{ // of the lowest low of the last 12 bars
for(back=1; back<=ExtBackstep; back++)
{ // Check back 3 bars, and if each value over those
// three bars is greater than the current lowest low,
// then reset the map buffer value to 0 because
// we have a new lower low.
res=ExtMapBuffer[shift+back];
if((res!=0)&&(res>val))
ExtMapBuffer[shift+back]=0.0;
}
}
}
ExtMapBuffer[shift]=val; // Set our current bar to 0 (continuation of zig) if:
// - A new low has not been reached;
// - The current bar is 6 pips beyond the lowest low
// Set our current bar to the lowest low if:
// - It is within 6 pips of the lowest low and
// and go back over the last three bars and set them
// to continuation of zig as well if they are greater
// than the new lowest value
// Same deal for below, except the case is reversed
// and everything is done in terms of trying to find
// the high zig-zag endpoint
val=High[Highest(NULL,0,MODE_HIGH,ExtDepth,shift)];
if(val==lasthigh)
val=0.0;
else
{
lasthigh=val;
if((val-High[shift])>(ExtDeviation*Point))
val=0.0;
else
{
for(back=1; back<=ExtBackstep; back++)
{
res=ExtMapBuffer2[shift+back];
if((res!=0)&&(res<val))
ExtMapBuffer2[shift+back]=0.0;
}
}
}
ExtMapBuffer2[shift]=val;
}
// final cutting
lasthigh=-1;
lasthighpos=-1;
lastlow=-1;
lastlowpos=-1;
for(shift=Bars-ExtDepth; shift>=0; shift--)
{
curlow=ExtMapBuffer[shift];
curhigh=ExtMapBuffer2[shift];
if((curlow==0)&&(curhigh==0)) // Break into the next cycle of the loop
continue; // to try and find the next zig-zap endpoint
if(curhigh!=0) // If there is a current high, then:
{
if(lasthigh>0) // If there was a previous high already:
{
if(lasthigh<curhigh) // - Set the last high to 0 if it is less than the current high
ExtMapBuffer2[lasthighpos]=0;
else // - Set the current bar to 0 if it is less than the last high
ExtMapBuffer2[shift]=0;
}
if(lasthigh<curhigh || lasthigh<0)
{ // If there was no last high or the last high was less than the current high
lasthigh=curhigh; // - Set the current high to be the last high (keep record of it)
lasthighpos=shift; // - Set the current bar to the lasthighpos (keep record of it)
}
lastlow=-1; // Since we just had a new high, reset the lastlow flag
}
if(curlow!=0) // If there is a low, then do the same as above, except for the case of lows instead of highs
{
if(lastlow>0)
{
if(lastlow>curlow)
ExtMapBuffer[lastlowpos]=0;
else
ExtMapBuffer[shift]=0;
}
if((curlow<lastlow)||(lastlow<0))
{
lastlow=curlow;
lastlowpos=shift;
}
lasthigh=-1;
}
}
for(shift=Bars-1; shift>=0; shift--)
{ // Go through all the bars
if(shift>=Bars-ExtDepth) // If we are not at the beginning comparison bars,
ExtMapBuffer[shift]=0.0; // then set the low buffer to 0
else
{ // Otherwise:
res=ExtMapBuffer2[shift]; // - If the current bar has a high, set the low
if(res!=0.0) // buffer to contain the high
ExtMapBuffer[shift]=res;
} // Looks like this function brings the highs into the lows
} // so that all the zig-zags can be drawn from one function
LastActive = -1;
LastActivePos = -1;
for(shift=0; shift<=Bars-ExtDepth; shift++)
{
if(ExtMapBuffer[shift]!=0.0)
{
if(LastActive > 0)
{
if(MathAbs(LastActive - ExtMapBuffer[shift]) >= RequiredWaveHeight*Point)
{
AWStartPos = shift;
AWStart = ExtMapBuffer[shift];
AWEndPos = LastActivePos;
AWEnd = LastActive;
if(ObjectFind("ActiveWave") != 0)
{
ObjectCreate("ActiveWave", OBJ_TREND, 0, Time[AWStartPos], AWStart, Time[AWEndPos], AWEnd);
ObjectSet("ActiveWave", OBJPROP_STYLE, STYLE_SOLID);
ObjectSet("ActiveWave", OBJPROP_COLOR, Red);
ObjectSet("ActiveWave", OBJPROP_WIDTH, 3);
ObjectSet("ActiveWave", OBJPROP_RAY, false);
}
else
{
ObjectMove("ActiveWave", 0, Time[AWStartPos], AWStart);
ObjectMove("ActiveWave", 1, Time[AWEndPos], AWEnd);
}
if(AWStart < AWEnd)
{
FiboL = AWStart;
FiboH = AWEnd;
}
else
{
FiboL = AWEnd;
FiboH = AWStart;
}
FiboLC = FiboL + (FiboH - FiboL)*0.236;
FiboLR = FiboL + (FiboH - FiboL)*0.382;
FiboHL2 = FiboL + (FiboH - FiboL)*0.5;
FiboHR = FiboL + (FiboH - FiboL)*0.618;
FiboHC = FiboL + (FiboH - FiboL)*0.764;
if(ObjectFind("Fibo") != 0)
{
ObjectCreate("Fibo", OBJ_FIBO, 0, Time[AWStartPos], AWStart, Time[AWEndPos], AWEnd);
ObjectSet("Fibo", OBJPROP_STYLE, STYLE_SOLID);
ObjectSet("Fibo", OBJPROP_COLOR, Green);
ObjectSet("Fibo", OBJPROP_WIDTH, 2);
ObjectSet("Fibo", OBJPROP_FIBOLEVELS, 7);
ObjectSet("Fibo", OBJPROP_FIRSTLEVEL+0, 0);
ObjectSet("Fibo", OBJPROP_FIRSTLEVEL+1, 0.236);
ObjectSet("Fibo", OBJPROP_FIRSTLEVEL+2, 0.382);
ObjectSet("Fibo", OBJPROP_FIRSTLEVEL+3, 0.5);
ObjectSet("Fibo", OBJPROP_FIRSTLEVEL+4, 0.618);
ObjectSet("Fibo", OBJPROP_FIRSTLEVEL+5, 0.764);
ObjectSet("Fibo", OBJPROP_FIRSTLEVEL+6, 1);
}
else
{
ObjectMove("Fibo", 0, Time[AWStartPos], AWStart);
ObjectMove("Fibo", 1, Time[AWEndPos], AWEnd);
}
break;
}
}
LastActive = ExtMapBuffer[shift];
LastActivePos = shift;
}
}
}
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