labtrend1_v2
Download script
This script is designed as a technical analysis tool that helps traders identify the direction of market trends by monitoring price movements relative to a dynamic "Price Channel." Instead of just looking at simple price highs and lows, it creates a calculated boundary system to help filter out market noise and highlight significant shifts in momentum.
How the Logic Works
1. Establishing the Price Channel The script first looks back at a specific number of previous bars (the "Length") to identify the highest high and lowest low reached during that period. Using these two points, it creates a price channel. It then calculates a "Risk" factor—a user-defined multiplier—to determine specific support and resistance boundaries within that channel. These boundaries act as the "gates" for trend detection.
2. Trend Identification (The Breakout Mechanism) The core logic relies on price breakouts. The script constantly monitors whether the current closing price moves beyond the calculated boundaries:
- Bullish Trend: If the price breaks above the upper boundary of the channel, the script registers a shift to an upward trend.
- Bearish Trend: If the price breaks below the lower boundary of the channel, the script registers a shift to a downward trend.
The script "remembers" the previous trend state. It will only change its mind when a clear breakout occurs in the opposite direction, which helps prevent the signals from flickering during minor price fluctuations.
3. Visual Signals and Alerts Once a trend is established, the script provides several layers of feedback for the user:
- Arrows: When the trend flips (e.g., from down to up), the script places an arrow on the chart to signal the exact moment of the transition.
- Color Bars: Depending on the user's settings, the script can highlight the bars on the chart. If the price is trading strongly within the current trend direction, it colors the bars accordingly; if the price pulls back significantly, the coloring changes or disappears.
- Audio and Pop-up Alerts: The logic includes a verification step where it checks for "Volume." If a trend flip occurs and there is active trading volume, the script can trigger a sound alert and a pop-up notification on the trader's screen.
4. Multi-Timeframe Awareness The script has the ability to pull data from different timeframes. This allows a trader to see how higher-level market trends might be influencing the current price action, providing a broader context for the signals being generated on the main chart.
Summary for the User
In plain terms, this tool acts like a "breakout monitor." It defines a zone of normal price activity and watches for the moment the price "breaks out" of that zone with enough strength to suggest a new trend. When it detects these shifts, it paints the chart, provides visual arrows, and sends alerts to notify you of potential buying or selling opportunities.
//+------------------------------------------------------------------+
//| LabTrend1_v2.mq4 |
//| Copyright © 2006, TrendLaboratory Ltd. |
//| http://finance.groups.yahoo.com/group/TrendLaboratory |
//| E-mail: igorad2004@list.ru |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2006, TrendLaboratory Ltd."
#property link "http://finance.groups.yahoo.com/group/TrendLaboratory"
#property indicator_chart_window
#property indicator_buffers 6
#property indicator_color1 Blue
#property indicator_color2 Red
#property indicator_color3 Blue
#property indicator_color4 Red
#property indicator_width3 0
#property indicator_width4 0
//---- input parameters
extern double Risk = 3; //Price Channel narrowing factor (1..10)
extern int TimeFrame = 0; //TimeFrame in min
extern int Signal = 1; //Display signals mode
extern int ColorBar = 1; //Display color bars mode: 0-no,1-yes
extern int SoundAlertMode = 0; //Sound Alert switch
//---- indicator buffers
double UpTrendSignal[];
double DownTrendSignal[];
double UpTrendBar[];
double DownTrendBar[];
double smax[];
double smin[];
double trend[];
int Length=9, time[2];
bool Expert=true;
double BSMAX[2],BSMIN[2];
bool UpTrendAlert=false, DownTrendAlert=false;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
string short_name;
//---- indicator line
IndicatorBuffers(7);
SetIndexBuffer(0,UpTrendSignal);
SetIndexBuffer(1,DownTrendSignal);
SetIndexBuffer(2,UpTrendBar);
SetIndexBuffer(3,DownTrendBar);
SetIndexBuffer(4,smax);
SetIndexBuffer(5,smin);
SetIndexBuffer(6,trend);
SetIndexStyle(0,DRAW_ARROW);
SetIndexStyle(1,DRAW_ARROW);
SetIndexStyle(2,DRAW_HISTOGRAM);
SetIndexStyle(3,DRAW_HISTOGRAM);
SetIndexArrow(0,108);
SetIndexArrow(1,108);
//---- name for DataWindow and indicator subwindow label
short_name="LabTrend1("+DoubleToStr(Risk,2)+")";
IndicatorShortName(short_name);
SetIndexLabel(0,"UpTrend Signal");
SetIndexLabel(1,"DownTrend Signal");
SetIndexLabel(2,"UpTrend Bar");
SetIndexLabel(3,"DownTrend Bar");
//----
SetIndexEmptyValue(0,0.0);
SetIndexEmptyValue(1,0.0);
SetIndexEmptyValue(2,0.0);
SetIndexEmptyValue(3,0.0);
SetIndexDrawBegin(0,Length);
SetIndexDrawBegin(1,Length);
SetIndexDrawBegin(2,Length);
SetIndexDrawBegin(3,Length);
//----
return(0);
}
//+------------------------------------------------------------------+
//| LabTrend1_v2 |
//+------------------------------------------------------------------+
int start()
{
datetime TimeArray[];
int i,shift,y=0,MaxBar,limit,counted_bars=IndicatorCounted();
double high, low, price, sum, UpBar,DnBar;
double bsmax[1],bsmin[1];
double LowArray[],HighArray[];
int Line=0; //Display line mode: 0-no,1-yes
if (Bars-1<Length+1)return(0);
if (counted_bars<0)return(-1);
if (counted_bars>0) counted_bars--;
MaxBar=Bars-1-Length-1;
limit=Bars-counted_bars-1 + TimeFrame/Period();
if (limit>MaxBar)
{
for (shift=limit;shift>=MaxBar;shift--)
{
smax[Bars-shift]=0.0;
smin[Bars-shift]=0.0;
UpTrendSignal[Bars-shift]=0.0;
DownTrendSignal[Bars-shift]=0.0;
UpTrendBar[Bars-shift]=0.0;
DownTrendBar[Bars-shift]=0.0;
}
limit=MaxBar;
}
if(ArrayResize(bsmin,limit+2)!=limit+2)return(-1);
if(ArrayResize(bsmax,limit+2)!=limit+2)return(-1);
int Tnew=Time[limit+1];
if (limit<MaxBar)
if (Tnew==time[1])
{
bsmin[limit+1]=BSMIN[1];
bsmax[limit+1]=BSMAX[1];
Expert=false;
}
else
if (Tnew==time[0])
{
bsmin[limit+1]=BSMIN[0];
bsmax[limit+1]=BSMAX[0];
BSMIN[1]=BSMIN[0];
BSMAX[1]=BSMAX[0];
}
else
{
if (Tnew>time[1])Print("Error1");
else Print("Error2");
return(-1);
}
// Draw price channel boards + calculation : Channel middle, half channel width,
ArrayCopySeries(TimeArray,MODE_TIME,Symbol(),TimeFrame);
ArrayCopySeries(LowArray,MODE_LOW,Symbol(),TimeFrame);
ArrayCopySeries(HighArray,MODE_HIGH,Symbol(),TimeFrame);
for(shift=0,y=0;shift<limit;shift++)
{
if (Time[shift]<TimeArray[y]) y++;
smin[shift]=10000000; smax[shift]=-100000000;
for (i=Length-1;i>=0;i--)
{
smin[shift]=MathMin(smin[shift],LowArray[y+i]);
smax[shift]=MathMax(smax[shift],HighArray[y+i]);
}
}
for (shift=limit;shift>=0;shift--)
{
UpTrendSignal[shift]=0.0;
DownTrendSignal[shift]=0.0;
UpTrendBar[shift]=0.0;
DownTrendBar[shift]=0.0;
// Calculation channel stop values
bsmax[shift]=smax[shift]-(smax[shift]-smin[shift])*(33.0-Risk)/100.0;
bsmin[shift]=smin[shift]+(smax[shift]-smin[shift])*(33.0-Risk)/100.0;
// Signal area : any conditions to trend determination:
// 1. Price Channel breakout
trend[shift]=trend[shift+1];
if(trend[shift+1]<0 && Close[shift]>bsmax[shift]) trend[shift]=1;
if(trend[shift+1]>0 && Close[shift]<bsmin[shift]) trend[shift]=-1;
// Drawing area
UpBar=bsmax[shift];
DnBar=bsmin[shift];
if (trend[shift]>0)
{
if (Signal>0 && trend[shift+1]<0)
{
UpTrendSignal[shift]=Low[shift]-0.5*iATR(NULL,TimeFrame,10,shift);
if (SoundAlertMode>0 && shift==0) PlaySound("alert2.wav");
}
else
UpTrendSignal[shift]=EMPTY_VALUE;
if(ColorBar>0)
{
if(Close[shift]>UpBar)
{
UpTrendBar[shift]=High[shift];
DownTrendBar[shift]=Low[shift];
}
else
{
UpTrendBar[shift]=0.0;
DownTrendBar[shift]=0.0;
}
}
}
else
if (trend[shift]<0)
{
if (Signal==1 && trend[shift+1]>0)
{
DownTrendSignal[shift]=High[shift]+0.5*iATR(NULL,TimeFrame,10,shift);
if (SoundAlertMode>0 && shift==0) PlaySound("alert2.wav");
}
else
DownTrendSignal[shift]=0.0;
if(ColorBar>0)
{
if(Close[shift]<DnBar)
{
UpTrendBar[shift]=Low[shift];
DownTrendBar[shift]=High[shift];
}
else
{
UpTrendBar[shift]=0.0;
DownTrendBar[shift]=0.0;
}
}
}
if ((shift==2)||((shift==1)&&(Expert==true)))
{
time [shift-1]=Time [shift];
BSMIN[shift-1]=bsmin[shift];
BSMAX[shift-1]=bsmax[shift];
}
}
//----------
string Message;
if ( trend[2]<0 && trend[1]>0 && Volume[0]>1 && !UpTrendAlert)
{
Message = " "+Symbol()+" M"+Period()+": LabTrend Signal for BUY";
if ( SoundAlertMode>0 && NewBar() == true) Alert (Message);
UpTrendAlert=true; DownTrendAlert=false;
}
if ( trend[2]>0 && trend[1]<0 && Volume[0]>1 && !DownTrendAlert)
{
Message = " "+Symbol()+" M"+Period()+": LabTrend Signal for SELL";
if ( SoundAlertMode>0 && NewBar() == true) Alert (Message);
DownTrendAlert=true; UpTrendAlert=false;
}
//----
return(0);
}
//+------------------------------------------------------------------+
bool NewBar()
{
static datetime lastbar ;
datetime curbar = Time[0];
if(lastbar!=curbar)
{
lastbar=curbar;
return (true);
}
else
{
return(false);
}
}
/* static int LastAlert = 0;
if( LastAlert == 0 || LastAlert_1 < Bars )
{
Alert(alert_msg);
LastAlert = Bars;
}*/
Comments