kuskus_starlightv2
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This script is a specialized technical analysis tool designed to identify and visualize market trends by analyzing the relationship between price movement and volatility. Rather than simply showing where the price is, it focuses on where the price sits within its recent range to determine the "strength" of a trend.
Core Logic Overview
The indicator operates by evaluating a specific window of recent history (defined by the user as "Range Periods"). For every point on the chart, it performs the following three-step calculation:
1. Relative Position Mapping The tool first identifies the highest high and the lowest low within the chosen time frame. It then calculates the current price's position relative to that range. By converting this into a scale between -1 and +1, the script creates a normalized value that represents where the market is leaning—whether it is hugging the top of the range (bullish), the bottom (bearish), or sitting in the middle (neutral).
2. Dual-Layer Smoothing To prevent the indicator from reacting too wildly to minor price "noise," the script applies two distinct layers of smoothing:
- Price Smoothing: It first smooths the relative price location. This ensures that a single sudden spike doesn't cause a massive, erratic jump in the data.
- Index Smoothing: After the price location is smoothed, it is converted into a "Fisher Index" using a logarithmic calculation (which emphasizes changes). This resulting index is then smoothed a second time to create a fluid, readable trend line.
3. Trend Identification & Visual Signaling The final output is translated into a clear visual signal for the trader:
- Upward Trend: When the final calculated value is positive, the script identifies an upward bias and displays a visual marker (Blue).
- Downward Trend: When the final calculated value is negative, the script identifies a downward bias and displays a visual marker (Red).
Summary for the User
In simple terms, this tool acts as a "momentum filter." It ignores minor fluctuations and focuses on the broader trend by seeing if the price is consistently maintaining its position in the upper or lower reaches of its recent trading range. When the indicator flips colors, it signals that the market's underlying momentum has shifted from bullish to bearish, or vice versa.
//+------------------------------------------------------------------+
//| Fisher_m11.mq4 |
//| Copyright © 23.07.2006 MartinG |
//| http://home.arcor.de/cam06/fisher |
//+------------------------------------------------------------------+
#property copyright "Copyright © 23.07.2006 MartinG"
#property link "http://home.arcor.de/cam06/fisher"
#property indicator_separate_window
//#property indicator_minimum -1
//#property indicator_maximum 1
#property indicator_buffers 3
#property indicator_color2 Blue
#property indicator_color3 Red
#property indicator_width1 1
#property indicator_width1 1
int LeftNum1=56;
int LeftNum2=56;
extern int RangePeriods=7;
extern double PriceSmoothing=0.95; // =0.67 bei Fisher_m10
extern double IndexSmoothing=0.95; // =0.50 bei Fisher_m10
string ThisName="Kuskus_Fisherv2";
int DrawStart;
//---- buffers
double ExtMapBuffer1[];
double ExtMapBuffer2[];
double ExtMapBuffer3[];
double ExtMapBuffer4[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- indicators
IndicatorBuffers(4);
SetIndexLabel(0,"Fish");
SetIndexStyle(0,DRAW_NONE);
SetIndexBuffer(0,ExtMapBuffer1);
SetIndexStyle(1,DRAW_ARROW);
SetIndexBuffer(1,ExtMapBuffer2);
SetIndexStyle(2,DRAW_ARROW);
SetIndexBuffer(2,ExtMapBuffer3);
SetIndexStyle(3,DRAW_NONE);
SetIndexBuffer(3,ExtMapBuffer4);
string Text=ThisName;
Text=Text+" (rPeriods "+RangePeriods;
Text=Text+", pSmooth "+DoubleToStr(PriceSmoothing,2);
Text=Text+", iSmooth "+DoubleToStr(IndexSmoothing,2);
Text=Text+") ";
IndicatorShortName(Text);
SetIndexLabel(1,NULL);
SetIndexLabel(2,NULL);
DrawStart=2*RangePeriods+4; // DrawStart= BarNumber calculated from left to right
SetIndexDrawBegin(1,DrawStart);
SetIndexDrawBegin(2,DrawStart);
if (PriceSmoothing>=1.0)
{
PriceSmoothing=0.9999;
Alert("Fish61: PriceSmothing factor has to be smaller 1!");
}
if (PriceSmoothing<0)
{
PriceSmoothing=0;
Alert("Fish61: PriceSmothing factor mustn''t be negative!");
}
if (IndexSmoothing>=1.0)
{
IndexSmoothing=0.9999;
Alert("Fish61: PriceSmothing factor has to be smaller 1!");
}
if (IndexSmoothing<0)
{
IndexSmoothing=0;
Alert("Fish61: PriceSmothing factor mustn''t be negative!");
}
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
//----
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
if (Bars<DrawStart)
{
Alert("Fish84: Not enough Bars to calculate RangePeriods=",RangePeriods);
return(-1);
}
//----
int counted_bars=IndicatorCounted();
if (counted_bars<0) return(-1);
if (counted_bars>0) counted_bars--;
//----
int Position=Bars-counted_bars; // Position = BarPosition calculated from right to left
int LeftNum1=Bars-Position; // when more bars are loaded the Position of a bar changes but not its LeftNum
if (LeftNum1<RangePeriods+1)Position=Bars-RangePeriods-1;
while(Position>=0)
{
CalculateCurrentBar(Position);
Position--;
}
//----
return(0);
}
//+------------------------------------------------------------------+
//| Single Bar Calculation function |
//+------------------------------------------------------------------+
int CalculateCurrentBar(int pos)
{
double LowestLow, HighestHigh, GreatestRange, MidPrice;
double PriceLocation, SmoothedLocation, FishIndex, SmoothedFish;
//----
LowestLow = Low[Lowest(NULL,0,MODE_LOW,RangePeriods,pos)];
HighestHigh = High[Highest(NULL,0,MODE_HIGH,RangePeriods,pos)];
if (HighestHigh-LowestLow<0.1*Point)HighestHigh=LowestLow+0.1*Point;
GreatestRange=HighestHigh-LowestLow;
MidPrice = (High[pos]+Low[pos])/2;
// PriceLocation in current Range
if (GreatestRange!=0)
{
PriceLocation=(MidPrice-LowestLow)/GreatestRange;
PriceLocation= 2.0*PriceLocation - 1.0; // -> -1 < PriceLocation < +1
}
// Smoothing of PriceLocation
ExtMapBuffer4[pos]=PriceSmoothing*ExtMapBuffer4[pos+1]+(1.0-PriceSmoothing)*PriceLocation;
SmoothedLocation=ExtMapBuffer4[pos];
if (SmoothedLocation> 0.99) SmoothedLocation= 0.99; // verhindert, dass MathLog unendlich wird
if (SmoothedLocation<-0.99) SmoothedLocation=-0.99; // verhindert, dass MathLog minuns unendlich wird
// FisherIndex
if(1-SmoothedLocation!=0) FishIndex=MathLog((1+SmoothedLocation)/(1-SmoothedLocation));
else Alert("Fisher129: Unerlaubter Zustand bei Bar Nummer ",Bars-pos);
// Smoothing of FisherIndex
ExtMapBuffer1[pos]=IndexSmoothing*ExtMapBuffer1[pos+1]+(1.0-IndexSmoothing)*FishIndex;
if (Bars-pos<DrawStart)ExtMapBuffer1[pos]=0;
SmoothedFish=ExtMapBuffer1[pos];
if (SmoothedFish>0) // up trend
{
ExtMapBuffer2[pos]=SmoothedFish;
ExtMapBuffer3[pos]=0;
}
else // else down trend
{
ExtMapBuffer2[pos]=0;
ExtMapBuffer3[pos]=SmoothedFish;
}
//----
return(0);
}
//+------------------------------------------------------------------+
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