NeutralHedge osc_v2test

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Author: � 2008.07.02 SwingMan
NeutralHedge osc_v2test

This tool is designed to analyze the relationship between two different financial instruments (for example, comparing EURUSD against another currency pair) to identify "neutral" price movements. Instead of just looking at a single chart, it calculates how one asset moves in relation to another to help traders visualize relative strength or weakness.

Core Logic Overview

The script functions by comparing the price action of a primary symbol (the one you are currently viewing) against a secondary "SubSymbol." Here is how it processes that information:

1. Relative Ratio Calculation The tool first looks at a specific period of historical data for both assets. It determines the high and low points of these ranges to establish a baseline. By comparing the size of the primary asset's price range against the secondary asset's range, it calculates a "Pips Ratio."

2. Visual Correlation (The Histogram) The tool then projects the movement of the secondary asset onto your main chart using that calculated ratio.

  • The Main Chart: Shows you where the current price is.
  • The Projected Calculation: Shows you where the price should be if it were perfectly correlated with the secondary asset.

The result is displayed as a histogram in a separate window:

  • If the actual price is higher than the projected calculation, it appears on one side of the zero line (representing a specific direction).
  • If the actual price is lower than the projection, it appears on the opposite side.

3. Threshold Monitoring The script includes visual "Threshold Lines." These act as boundaries. When the histogram bars move significantly beyond these lines, it suggests that the relationship between the two assets is stretching—meaning one is moving much faster or slower than the other, which may signal a potential trading opportunity or a breakdown in correlation.

Performance Tracking Features

Beyond just visual analysis, the script includes a reporting system for active trades:

  • Entry Tracking: You can input a specific time and order type (Buy or Sell).
  • Real-time Win/Loss Calculation: The tool tracks the current profit or loss of that specific position by comparing the price changes of both the main and sub-symbols simultaneously.
  • On-Screen Dashboard: It generates a dynamic text display on your chart showing the entry time, the prices at the moment of entry for both assets, and the live calculated Win/Loss status in points (pips).

Summary for the User

Essentially, this tool tells you: "Based on how Asset B is moving, where do we expect Asset A to be? Is it actually going there?" It helps traders identify "outliers" where one currency pair is deviating from its historical relationship with another.

Price Data Components
Series array that contains the lowest prices of each barSeries array that contains the highest prices of each barSeries array that contains close prices for each barSeries array that contains close prices for each bar
Miscellaneous
Implements a curve of type %1It issuies visual alerts to the screen
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NeutralHedge osc_v2test 
//+------------------------------------------------------------------+
//|                                          NeutralHedge osc_v2.mq4 |
//|                                            © 2008.07.02 SwingMan |
//|                                                                  |
//+------------------------------------------------------------------+
#property copyright "© 2008.07.02 SwingMan"
#property link      ""
// source code:
//+------------------------------------------------------------------+
//|                                       OverLay Chart.mq4 Ver.1.10 |
//|                                      Copyright© 2006-2007 S.B.T. |
//|                                     http://sufx.core.t3-ism.net/ |
//+------------------- DO NOT REMOVE THIS HEADER --------------------+
//|  This script is free to use/distribute/modify and re-distribute. |
//|                                  (Limited to noncommercial use.) |
//+------------------------------------------------------------------+
// changes:
//+------------------------------------------------------------------+
// - fewhills  / 2008.07.02
// I have modified the indicator with 2 extra parameters: starting time and TF period.
// The time parameter is the usual MT4 method: yyyy.mm.dd hh:mm
// The TF period is default at 1 Hr TF = 60 
//+------------------------------------------------------------------+
// - SwingMan / 2008.07.02
// v1 - draw histogram of ratios
// v2 - write trading results
// mrkam:  changed "calculate visable bars from 1 to 500"...  I also "zero'd" out
//         the "Start Date" function???
          
//+------------------------------------------------------------------+

#property indicator_separate_window
#property indicator_buffers 2

#property indicator_color1 MediumSeaGreen
#property indicator_color2 Tomato

#property indicator_level1 0
#property indicator_levelcolor Gray
#property indicator_levelstyle STYLE_SOLID

//---- inputs --------------------------------------------------------
extern string SubSymbol = "EURUSD";
extern string StartingTimeCorr = "2008.07.03 00:00";
extern int    TFperiod         = 60;
extern double threshold = 70;
extern string EntryTime = "";
extern string _____Order____ = "BUY=0,  SELL=1";
extern int Order_Main = -1;
extern color threshold_color = Magenta;
extern bool Mirroring = false;
//--------------------------------------------------------------------

string sWinName = "NeutralHedge osc_v2";

//Indicator Buffers
double ExtMapBuffer1[];
double ExtMapBuffer2[];

//-- variables
double dPoint;
int iWindow = 1;

//+------------------------------------------------------------------+
//| Custom indicator initialization function                         |
//+------------------------------------------------------------------+
int init()
{
   dPoint = MarketInfo(Symbol(), MODE_POINT);   
      
   sWinName = sWinName + " (" + Symbol() + "-" + SubSymbol + ") ";
   IndicatorShortName(sWinName);   
   
   SetIndexBuffer( 0, ExtMapBuffer1 );
   SetIndexBuffer( 1, ExtMapBuffer2 );

   SetIndexStyle( 0, DRAW_HISTOGRAM, STYLE_SOLID, 2);
   SetIndexStyle( 1, DRAW_HISTOGRAM, STYLE_SOLID, 2);
   
   SetIndexEmptyValue( 0, 0.0 );
   SetIndexEmptyValue( 1, 0.0 );

   SetIndexLabel( 0, "BUY -" +Symbol() );
   SetIndexLabel( 1, "SELL-" +Symbol() );
      
   IndicatorDigits(Digits);
   
   Draw_ThresholdLines();
   DeleteOwnObjects();
   
   return(0);
}


//+------------------------------------------------------------------+
//| Custom indicator deinitialization function                       |
//+------------------------------------------------------------------+
int deinit()
{  
   DeleteOwnObjects();
   return(0);
}

//+------------------------------------------------------------------+
//| Custom indicator iteration function                              |
//+------------------------------------------------------------------+
int start()
{
   int _BarsCount;
   double _CurRangeHigh, _CurRangeLow, _CurRangeCenter, _CurClose;
   double _SubRangeHigh, _SubRangeLow, _SubRangeCenter;
   double _SubPoint, _SubDigit;
   double _SubOpen, _SubHigh, _SubLow, _SubClose;
   double _PipsRatio;
   double _GridPips, _GridPrice;
   int _i;

   int firstBar = iBarShift(NULL,TFperiod,StrToTime(StartingTimeCorr),true);
   if (firstBar <0 )
   {
      Alert("StartingTimeCorr seems to be wrong."); return (0);
   }
       
   //-- Initialize Buffers
	RefreshRates();
   ArrayInitialize( ExtMapBuffer1, 0.0 );
   ArrayInitialize( ExtMapBuffer2, 0.0 );

   //-- Calculate Visible Bars
   _BarsCount = WindowBarsPerChart() + 500;
   int _FirstBar = firstBar; // WindowFirstVisibleBar();
   int _LastBar = _FirstBar - _BarsCount + 500;
   if ( _LastBar < 0 ) {
      _LastBar = 0;
      _BarsCount = _FirstBar + 500;
   }


   //-- Calculate Chart Ratio
   _CurRangeHigh = High[Highest(Symbol(), 0, MODE_HIGH, _BarsCount, _LastBar)];
   _CurRangeLow  = Low[Lowest(Symbol(), 0, MODE_LOW, _BarsCount, _LastBar)];
   _CurRangeCenter = ( _CurRangeHigh + _CurRangeLow ) * 0.5;
      
   if ( Mirroring ) {
      _SubRangeHigh = iLow( SubSymbol, 0, Lowest( SubSymbol, 0, MODE_LOW, _BarsCount, _LastBar ) );
      _SubRangeLow  = iHigh( SubSymbol, 0, Highest( SubSymbol, 0, MODE_HIGH, _BarsCount, _LastBar ) );
   } else {
      _SubRangeHigh = iHigh( SubSymbol, 0, Highest( SubSymbol, 0, MODE_HIGH, _BarsCount, _LastBar ) );
      _SubRangeLow  = iLow( SubSymbol, 0, Lowest( SubSymbol, 0, MODE_LOW, _BarsCount, _LastBar ) );
   }

   _SubRangeCenter = ( _SubRangeHigh + _SubRangeLow ) * 0.5;
   _SubPoint = MarketInfo( SubSymbol, MODE_POINT );
   _SubDigit = MarketInfo( SubSymbol, MODE_DIGITS );

   _PipsRatio = ( _CurRangeHigh - _CurRangeLow )  / ( _SubRangeHigh - _SubRangeLow );

   //-- Draw ratio
	for ( _i = _LastBar; _i < _LastBar + _BarsCount; _i ++ ) {
      _SubClose = iClose( SubSymbol, 0, _i ) - _SubRangeCenter;      

      double Close_Sub = _CurRangeCenter + _SubClose * _PipsRatio;     
      double Close_Main = iClose(Symbol(), 0, _i);
      double range = (Close_Main - Close_Sub) / dPoint;      
      range = NormalizeDouble(range,0);
      
      if (range > 0) 
        ExtMapBuffer2[_i] = range; 
      else 
        ExtMapBuffer1[_i] = range;
   } 
   
   //-- write win/loss
   Write_WinLossTrading();
//----
   return(0);
}
//+------------------------------------------------------------------+

//+------------------------------------------------------------------+
//    Draw Threshold Lines
//+------------------------------------------------------------------+
string sObject = "NH_";
int fontSize_Text = 8;
int iLabelCorner = 1;
int xx1 = 80;
int xx2 = 2;
int xx3 = 60;
int xx4 = 30;
int yy0 = 3, yy;
int yStep = 10;


void Write_WinLossTrading()
{
   double WinLoss;
   string text1, text2, sOrder, sEmpty;
      
   //EntryTime = "2008.07.02 20:00";   
   if (EntryTime == "") return;
   yy = yy0;
   
   int entryBar = iBarShift(Symbol(),TFperiod,StrToTime(EntryTime),true);
   double Entry_Main = iClose(Symbol(), 0, entryBar);
   double Entry_Sub  = iClose(SubSymbol, 0, entryBar);
   double Price_Main = iClose(Symbol(), 0, 0);
   double Price_Sub  = iClose(SubSymbol, 0, 0);
   
   WinLoss = 0;   
   if (Order_Main == OP_BUY) {
      WinLoss = (Price_Main - Entry_Main) + (Entry_Sub - Price_Sub);
      sOrder = Symbol() + "-BUY:";
   } else 
   if (Order_Main == OP_SELL) {
      WinLoss = -(Price_Main - Entry_Main) - (Entry_Sub - Price_Sub);
      sOrder = Symbol() + "-SELL:";
   } else {
      Entry_Main = 0;
      Entry_Sub  = 0;
      sOrder = "Order_Main:";
      sEmpty = "EMPTY";
   }
   WinLoss = WinLoss / dPoint;

   //......................................................
   text1 = "Entry time:";
   text2 = EntryTime;
   Write_Label(text1, text2, xx1+10, xx2, yy); yy = yy + yStep;

   //......................................................
   text1 = sOrder;
   if (sOrder == "Order_Main:") {
      text2 = sEmpty;
      int xx5 = xx4;
   } else {
      text2 = DoubleToStr(Entry_Main,Digits) + " / " + DoubleToStr(Entry_Sub,Digits);
      xx5 = xx2;
   }   
   Write_Label(text1, text2, xx1, xx5, yy); yy = yy + yStep;
   
   //......................................................
   text1 = "Current price:";
   text2 = DoubleToStr(Price_Main,Digits) + " / " + DoubleToStr(Price_Sub,Digits);
   Write_Label(text1, text2, xx1, xx2, yy); yy = yy + yStep;
   
   //......................................................
   text1 = "WinLoss:";
   text2 = DoubleToStr(WinLoss,0);
   Write_Label(text1, text2, xx1, xx3, yy); yy = yy + yStep;   
}

void Write_Label(string text1, string text2, int xx1, int xx2, int yy)
{
   color dColor = Orange;
   string name1 = sObject + "1" + yy;
   string name2 = sObject + "2" + yy;
   SetLabelObject(name1, text1, dColor, xx1, yy);
   SetLabelObject(name2, text2, dColor, xx2, yy);
   return;
}

void SetLabelObject(string sName, string sText, color dColor, int xx, int yy)
{
   ObjectCreate(sName, OBJ_LABEL, iWindow, 0, 0);
        ObjectSetText(sName,sText,fontSize_Text, "Arial Bold", dColor);
        ObjectSet(sName, OBJPROP_CORNER, iLabelCorner);
        ObjectSet(sName, OBJPROP_XDISTANCE, xx);
        ObjectSet(sName, OBJPROP_YDISTANCE, yy);
   return;     
}

void DeleteOwnObjects()
{
   int i=0;
   while (i <= ObjectsTotal()) {
      if (StringFind(ObjectName(i), sObject) >= 0) ObjectDelete(ObjectName(i));
      else
      i++;
   }
   return;
}


//+------------------------------------------------------------------+
//    Draw Threshold Lines
//+------------------------------------------------------------------+
void Draw_ThresholdLines()
{
   iWindow = WindowFind(sWinName);
   Draw_Line("threshLineUp",  threshold, threshold_color);
   Draw_Line("threshLineDn", -threshold, threshold_color);
   return;
}

void Draw_Line(string sName, double value, color iColor)
{   
   ObjectCreate(sName, OBJ_HLINE, iWindow, 0, value);
   ObjectSet(sName, OBJPROP_COLOR, iColor);
   ObjectSet(sName, OBJPROP_STYLE, STYLE_SOLID);
   ObjectSet(sName, OBJPROP_TIME1, 0);
   ObjectSet(sName, OBJPROP_PRICE1, value);
   return;
}

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