LabTrend1_v2_001

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Author: Copyright � 2006, TrendLaboratory Ltd.
LabTrend1_v2_001

This tool is designed to help traders visualize market trends by identifying specific "breakout" moments where the price moves beyond a calculated range. Instead of relying on lagging averages, it focuses on the volatility and high/low boundaries of recent price action.

Core Logic and Functionality

1. Dynamic Price Channel Calculation The script looks back at a set number of previous candles (defined by a specific length) to establish a "Price Channel." It identifies the highest point (peak) and the lowest point (valley) reached during this window. From these two points, it calculates a buffer zone based on a user-defined "Risk" factor. This essentially creates a corridor that represents the current price volatility.

2. Trend Determination (The Breakout) The logic determines the trend based on whether the current price closes outside of this calculated channel:

  • Bullish Trend: If the price closes above the upper boundary of the channel, the script identifies an upward trend.
  • Bearish Trend: If the price closes below the lower boundary of the channel, the script identifies a downward trend.

The tool "remembers" its previous state. It won't change the trend until a definitive breakout occurs in the opposite direction, which helps filter out minor price fluctuations (noise) and keeps the user focused on the primary move.

3. Visual Signals and Alerts The script provides three distinct types of visual feedback on the trading chart:

  • Trend Arrows: When a transition happens—for example, moving from a downward trend to an upward breakout—the script places an arrow on the chart. This serves as a primary "entry" signal.
  • Color Bars: The script can highlight the actual price bars. Depending on whether the price is maintaining its momentum within the trend or retracing, it changes the visual appearance of the candles to show strength.
  • Audio and Pop-up Alerts: For active traders, the tool can trigger sound effects and on-screen alerts at the exact moment a trend reversal is confirmed, ensuring that even if you aren't watching the screen constantly, you won't miss a major shift in market direction.

Key Features for the User

  • Sensitivity Adjustment: Through the "Risk" parameter, users can decide how "tight" the channel is. A lower risk factor makes the tool more sensitive to small moves, while a higher factor requires a much larger price move to trigger a signal.
  • Trend Persistence: By tracking the state of the trend over multiple bars, the logic ensures that signals are only generated when a significant structural change occurs in the market.
  • Volatility Awareness: The script uses an Average True Range (ATR) calculation to ensure that the arrows placed on the chart are positioned at a visually appropriate distance from the price, improving readability.
Indicators Used
Indicator of the average true range
Miscellaneous
Implements a curve of type %1It plays sound alerts
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LabTrend1_v2_001 
//+------------------------------------------------------------------+
//|                                                 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 1
#property indicator_width4 1
//---- 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; 

   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()+": Signal for BUY";
	if ( SoundAlertMode>0 ) Alert (Message); 
	UpTrendAlert=true; DownTrendAlert=false;
	} 
	 	  
	if ( trend[2]>0 && trend[1]<0 && Volume[0]>1 && !DownTrendAlert)
	{
	Message = " "+Symbol()+" M"+Period()+": Signal for SELL";
	if ( SoundAlertMode>0 ) Alert (Message); 
	DownTrendAlert=true; UpTrendAlert=false;
	} 	         
//----
   return(0);
}
//+------------------------------------------------------------------+

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