LSMA+in+Color
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This technical tool is designed to provide visual analysis of price trends by calculating a specialized weighted average. Rather than simply looking at the most recent price, the script analyzes a specific window of historical data to determine the underlying momentum of the market.
Core Logic and Methodology
Weighted Data Processing The primary logic of this script relies on a "weighted" calculation system. Unlike a standard moving average—where every previous price point carries equal importance—this tool assigns different levels of significance to different candles within a set period (defined by the user). By applying a mathematical weight to these prices, the indicator prioritizes specific data points to create a smoother, more reactive representation of market movement.
Trend Identification The script works by continuously comparing the calculated value of the current moment against the value of the previous moment. This allows it to detect shifts in direction:
- Upward Momentum: When the calculation shows that the value is increasing compared to the previous point, the logic identifies a bullish trend.
- Downward Momentum: When the calculation shows the value is decreasing, it identifies a bearish trend.
Visual Representation To make this data easy for a trader to interpret at a glance, the script uses a color-coding system:
- It plots three distinct lines (Yellow, Chartreuse/Green, and Red) on the chart.
- The logic dynamically "activates" or "hides" specific colors based on the direction of the trend.
- By clearing certain buffers when the price moves in a specific direction, it leaves behind visible cues that highlight the current path of the market, helping the user distinguish between buying and selling zones without manual calculation.
Summary for the User
In simple terms, this tool acts as a "momentum filter." It looks back at a set number of candles, weighs them based on their importance, and then draws colored lines on your chart to show you exactly where the market trend is gaining strength or losing steam. It simplifies complex price action into clear, color-coded visual signals.
/*-----------------------------+
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| Shared by www.Aptrafx.com |
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+------------------------------*/
//+------------------------------------------------------------------+
//| |
//| Copyright © 2004, MetaQuotes Software Corp. |
//| http://www.metaquotes.net/ |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2005, FX Sniper "
#property link "http://www.metaquotes.net/"
//---- indicator settings
#property indicator_chart_window
#property indicator_buffers 3
#property indicator_color1 Yellow
#property indicator_color2 Chartreuse
#property indicator_color3 Red
//---- buffers
double ExtMapBuffer1[];
double ExtMapBuffer2[];
double ExtMapBuffer3[];
int width;
extern int Rperiod = 34;
extern int Draw4HowLongg = 300; // 500 // 1000
int Draw4HowLong;
int shift;
int i;
int loopbegin;
double sum[];
int length;
double lengthvar;
double tmp ;
double wt[];
int c;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- 2 additional buffers are used for counting.
IndicatorBuffers(5);
//---- drawing settings
SetIndexBuffer(2,ExtMapBuffer1);
SetIndexBuffer(1,ExtMapBuffer2);
SetIndexBuffer(0,ExtMapBuffer3);
SetIndexBuffer(3,sum);
SetIndexBuffer(4,wt);
SetIndexStyle(2,DRAW_LINE,STYLE_SOLID,3);
SetIndexStyle(1,DRAW_LINE,STYLE_SOLID,3);
SetIndexStyle(0,DRAW_LINE,STYLE_SOLID,3);
//---- initialization done
return(0);
}
int start()
{ Draw4HowLong = Bars-Rperiod - 5;
length = Rperiod;
loopbegin = Draw4HowLong - length - 1;
for(shift = loopbegin; shift >= 0; shift--)
{
sum[1] = 0;
for(i = length; i >= 1 ; i--)
{
lengthvar = length + 1;
lengthvar /= 3;
tmp = 0;
tmp = ( i - lengthvar)*Close[length-i+shift];
sum[1]+=tmp;
}
wt[shift] = sum[1]*6/(length*(length+1));
//========== COLOR CODING ===========================================
ExtMapBuffer3[shift] = wt[shift]; //red
ExtMapBuffer2[shift] = wt[shift]; //green
ExtMapBuffer1[shift] = wt[shift]; //yellow
// for(c=loopbegin;c==shift;c++)
// {
if (wt[shift+1] > wt[shift])
{
ExtMapBuffer2[shift+1] = EMPTY_VALUE;
// ObjectCreate("smiley_face", OBJ_ARROW, 0, Time[shift], Low[shift]-Point*20);
// Print("time= ",Time[shift]);
// ObjectSet("smiley_face", OBJPROP_ARROWCODE, 242);
// ObjectSet("smiley_face", OBJPROP_COLOR , Red);
// ObjectSet("smiley_face", OBJPROP_WIDTH , 1);
// ObjectsRedraw();
//ExtMapBuffer3[shift+1] = EMPTY_VALUE;
//ExtMapBuffer3[shift+1] = EMPTY_VALUE;
}
else if (wt[shift+1] < wt[shift])
{
ExtMapBuffer1[shift+1] = EMPTY_VALUE; //-1 red/greem tight
//ExtMapBuffer3[shift+1] = EMPTY_VALUE;
}
else
{
ExtMapBuffer1[shift+1]=CLR_NONE;//EMPTY_VALUE;
ExtMapBuffer2[shift+1]=CLR_NONE;//EMPTY_VALUE;
}
}
return(0);
}
//+------------------------------------------------------------------+
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