JMA RSX
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This tool is designed as a technical indicator for MetaTrader, specifically built to provide traders with a visual representation of market momentum and price velocity. It operates in a separate window (distinct from the main price chart), allowing users to observe specific mathematical trends without cluttering their primary view.
Core Functionality
The script analyzes price action over a user-defined period (the "Length" parameter, which defaults to 14 bars). Instead of simply looking at where the price is currently located, the logic focuses on how fast and in what direction the price is moving. It identifies shifts in momentum by calculating a series of weighted averages based on historical closing prices.
How the Logic Works
The indicator follows a sophisticated multi-step calculation process:
- Momentum Tracking: The script continuously compares current price movements against previous data points to determine the "speed" of the market. It uses a series of smoothing calculations (moving averages) to filter out minor market noise, ensuring that the resulting data reflects significant trends rather than random fluctuations.
- Velocity Detection: By processing several layers of these weighted averages simultaneously, the tool calculates the acceleration of price movement. This allows it to distinguish between a steady trend and a sudden spike or exhaustion in price action.
- Relative Scaling: The final output is normalized to a scale of 0 to 100. This makes it easy for traders to interpret at a glance:
- The Centerline (50): Represents a neutral state where the market has no significant directional momentum.
- Upper and Lower Bounds: As the momentum gains strength in either direction, the indicator moves toward 100 or 0.
Visual Interpretation
The result is displayed as a magenta line on your screen. Because the logic is tied to velocity rather than just price, it helps traders identify when a trend is gaining strength or beginning to lose steam. By observing how the line moves relative to the established levels (30, 50, and 70), users can better anticipate potential shifts in market behavior before they are fully realized on the main chart.
#property copyright "strategybuilderfx.com"
#property link "finger"
#property indicator_separate_window
#property indicator_buffers 1
#property indicator_color1 Magenta
#property indicator_level1 70
#property indicator_level2 30
#property indicator_level3 50
#property indicator_maximum 100
#property indicator_minimum 0
//---- input parameters
extern int Len=14; //---- buffers
double rsx[];
double f88, f90;
double f0, v4, v8, vC, v10, v14, v18, v20;
double f8, f10, f18, f20, f28, f30, f38, f48, v1C;
double f50, f58, f60, f68, f70, f78, f80, f40;
int init() {
SetIndexStyle(0,DRAW_LINE);
SetIndexBuffer(0,rsx);
IndicatorShortName("rsxc("+Len+")");
return(0);
}
int deinit()
{
return(0);
}
int start()
{
int counted_bars=IndicatorCounted(),limit,shift;
if (counted_bars<0) return(-1);
if (counted_bars>0) counted_bars--;
limit=Bars-Len-1;
if(counted_bars>Len) limit=Bars-counted_bars-1;
for (shift=limit;shift>=0;shift--) {
if (f90 == 0.0) {
f90 = 1.0;
f0 = 0.0;
if (Len-1 >= 5) f88 = Len-1.0; else f88 = 5.0;
f8 = 100.0*(Close[shift]);
f18 = 3.0 / (Len + 2.0);
f20 = 1.0 - f18;
} else{
if (f88 <= f90) f90 = f88 + 1;
else
f90 = f90 + 1;
f10 = f8;
f8 = 100*Close[shift];
v8 = f8 - f10;
f28 = f20 * f28 + f18 * v8;
f30 = f18 * f28 + f20 * f30;
vC = f28 * 1.5 - f30 * 0.5;
f38 = f20 * f38 + f18 * vC;
f40 = f18 * f38 + f20 * f40;
v10 = f38 * 1.5 - f40 * 0.5;
f48 = f20 * f48 + f18 * v10;
f50 = f18 * f48 + f20 * f50;
v14 = f48 * 1.5 - f50 * 0.5;
f58 = f20 * f58 + f18 * MathAbs(v8);
f60 = f18 * f58 + f20 * f60;
v18 = f58 * 1.5 - f60 * 0.5;
f68 = f20 * f68 + f18 * v18;
f70 = f18 * f68 + f20 * f70;
v1C = f68 * 1.5 - f70 * 0.5;
f78 = f20 * f78 + f18 * v1C;
f80 = f18 * f78 + f20 * f80;
v20 = f78 * 1.5 - f80 * 0.5;
if ((f88 >= f90) && (f8 != f10)) f0 = 1.0;
if ((f88 == f90) && (f0 == 0.0)) f90 = 0.0;
}
if ((f88 < f90) && (v20 > 0.0000000001)) {
v4 = (v14 / v20 + 1.0) * 50.0;
if (v4 > 100.0) v4 = 100.0;
if (v4 < 0.0) v4 = 0.0;
} else {
v4 = 50.0;
}
rsx[shift]=v4;
}
return(0);
}
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