This tool is designed to help traders identify the prevailing direction of the market—specifically whether the price is trending upward or downward—by creating a dynamic "supertrend" line on a trading chart. By filtering out minor market noise, it helps users focus on the broader momentum of the asset.
Core Logic and Methodology
The script operates by calculating volatility and price positioning to establish a trailing boundary for the market. Here is a breakdown of how that logic works in plain language:
1. Volatility and Price Measurement The tool looks at two primary pieces of data for every historical candle on your chart:
- The Median Price: It calculates the midpoint between the high and low prices of a candle.
- Market Volatility: It uses a standard volatility measurement (ATR) to determine how much the price is "swinging" over a specific number of periods.
2. Establishing the Dynamic Boundaries Based on those measurements, the script creates two invisible mathematical boundaries:
- An Upper Boundary (Median Price + Volatility Multiplier)
- A Lower Boundary (Median Price - Volatility Multiplier)
These boundaries act as "safety zones." The tool monitors how the current market price interacts with these lines to decide which way the trend is moving.
3. Trend Detection and Switching The script continuously checks if the closing price has broken through these boundaries:
- Bullish Trend: If the price closes significantly above the upper boundary, the script recognizes an upward trend.
- Bearish Trend: If the price closes significantly below the lower boundary, the script recognizes a downward trend.
The logic is "sticky," meaning that once a trend is established, it stays in that state until a clear and significant price move in the opposite direction forces a switch. This prevents the indicator from flickering back and forth during minor price fluctuations.
4. Smoothing the Visuals To ensure the trend line looks clean and professional, the script includes "smoothing logic." It ensures that while the market is in an uptrend, the trend line only moves upward (it won't drop), and while in a downtrend, it only moves downward (it won't rise). This creates a steady, stair-step visual that clearly defines support and resistance levels.
5. Visual Signals and Alerts Beyond just drawing lines, the script identifies the exact moment the trend flips:
- When the trend shifts from down to up, it places a specific signal (an arrow) on the chart.
- When the trend shifts from up to down, it places a corresponding signal.
These signals serve as immediate visual cues for traders to consider potential entry or exit points based on the momentum shift.
6. Real-Time Information The tool also includes a dynamic display feature that provides the "Last Traded Price" (LTP) directly on the chart, allowing the user to keep track of the current price at a glance without needing to look elsewhere.
//+------------------------------------------------------------------+
//| Non Repainting SuperTrend.mq4 |
//| Copyright © 2012, Marketcalls (Rajandran R). |
//| http://www.marketcalls.in |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2012, Marketcalls"
#property link "http://www.marketcalls.in"
#property indicator_chart_window
#property indicator_color1 Blue
#property indicator_color2 Red
#property indicator_width1 1
#property indicator_width2 1
#property indicator_color3 Blue
#property indicator_color4 Red
#property indicator_width3 1
#property indicator_width4 1
#property indicator_buffers 4
double TrendUp[], TrendDown[];
double UpBuffer[];
double DnBuffer[];
int changeOfTrend;
extern int Nbr_Periods = 10;
extern double Multiplier = 4.0;
//---- input parameters
extern int sidFontSize = 30;
extern string sidFontName = "Ariel";
extern string NoteRedGreenBlue = "Red/Green/Blue each 0..255";
extern int sidRed = 30;
extern int sidGreen = 30;
extern int sidBlue = 30;
extern int sidXPos = 30;
extern int sidYPos = 150;
extern bool tagDisplayText = true;
extern string tagText = "www.marketcalls.in";
extern int tagFontSize = 15;
extern string tagFontName = "Ariel";
extern int tagRed = 30;
extern int tagGreen = 30;
extern int tagBlue = 30;
extern int tagXPos = 200;
extern int tagYPos = 300;
//---- data
string SID = "Symbol";
int sidRGB = 0;
string TAG = "Tag";
int tagRGB = 0;
string tf;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- indicators
SetIndexBuffer(0, TrendUp);
SetIndexStyle(0, DRAW_LINE, 1, 1);
SetIndexLabel(0, "Trend Up");
SetIndexBuffer(1, TrendDown);
SetIndexStyle(1, DRAW_LINE, 1, 1);
SetIndexLabel(1, "Trend Down");
SetIndexStyle(2,DRAW_ARROW,EMPTY);
SetIndexStyle(3,DRAW_ARROW,EMPTY);
SetIndexBuffer(2,UpBuffer);
SetIndexBuffer(3,DnBuffer);
SetIndexArrow(2,233);
SetIndexArrow(3,234);
SetIndexLabel(3,"Up Signal");
SetIndexLabel(4,"Down Signal");
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
//----
ObjectDelete(SID);
ObjectDelete(TAG);
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
double ClosePrice=Close[0];
// watermark(TAG, tagText, tagFontSize, tagFontName, tagRGB, tagXPos, tagYPos);
string str=StringConcatenate("www.marketcalls.in LTP : ",ClosePrice);
watermarkclose(TAG,str,22, tagFontName, tagRGB, 80, 20);
int limit, i, flag, flagh, trend[5000];
double up[5000], dn[5000], medianPrice, atr;
int counted_bars = IndicatorCounted();
//---- check for possible errors
if(counted_bars < 0) return(-1);
//---- last counted bar will be recounted
if(counted_bars > 0) counted_bars--;
limit=Bars-1-counted_bars;
//Print(limit);
//----
for (i = Bars; i >= 1; i--) {
TrendUp[i] = EMPTY_VALUE;
TrendDown[i] = EMPTY_VALUE;
atr = iATR(NULL, 0, Nbr_Periods, i);
//Print("atr: "+atr[i]);
medianPrice = (High[i]+Low[i])/2;
//Print("medianPrice: "+medianPrice[i]);
up[i]=medianPrice+(Multiplier*atr);
//Print("up: "+up[i]);
dn[i]=medianPrice-(Multiplier*atr);
//Print("dn: "+dn[i]);
trend[i]=1;
if (Close[i]>up[i+1]) {
trend[i]=1;
if (trend[i+1] == -1) changeOfTrend = 1;
//Print("trend: "+trend[i]);
}
else if (Close[i]<dn[i+1]) {
trend[i]=-1;
if (trend[i+1] == 1) changeOfTrend = 1;
//Print("trend: "+trend[i]);
}
else if (trend[i+1]==1) {
trend[i]=1;
changeOfTrend = 0;
}
else if (trend[i+1]==-1) {
trend[i]=-1;
changeOfTrend = 0;
}
if (trend[i]<0 && trend[i+1]>0) {
flag=1;
//Print("flag: "+flag);
}
else {
flag=0;
//Print("flagh: "+flag);
}
if (trend[i]>0 && trend[i+1]<0) {
flagh=1;
//Print("flagh: "+flagh);
}
else {
flagh=0;
//Print("flagh: "+flagh);
}
if (trend[i]>0 && dn[i]<dn[i+1])
dn[i]=dn[i+1];
if (trend[i]<0 && up[i]>up[i+1])
up[i]=up[i+1];
if (flag==1)
up[i]=medianPrice+(Multiplier*atr);
if (flagh==1)
dn[i]=medianPrice-(Multiplier*atr);
//-- Draw the indicator
if (trend[i]==1) {
TrendUp[i]=dn[i];
if (changeOfTrend == 1) {
TrendUp[i+1] = TrendDown[i+1];
changeOfTrend = 0;
}
}
else if (trend[i]==-1) {
TrendDown[i]=up[i];
if (changeOfTrend == 1) {
TrendDown[i+1] = TrendUp[i+1];
changeOfTrend = 0;
}
}
if (trend[i]==1 && trend[i+1]==-1) {
UpBuffer[i] = iLow(Symbol(),0,i)-(3*Point);
DnBuffer[i] = EMPTY_VALUE;
}
if (trend[i]==-1 && trend[i+1]==1) {
UpBuffer[i] = EMPTY_VALUE;
DnBuffer[i] = iHigh(Symbol(),0,i)+(3*Point);
}
}
WindowRedraw();
//----
return(0);
}
//+------------------------------------------------------------------+
void watermarkclose(string obj, string text, int fontSize, string fontName, color colour, int xPos, int yPos)
{
ObjectCreate(obj, OBJ_LABEL, 0, 0, 0);
ObjectSetText(obj, text, fontSize, fontName, Red);
ObjectSet(obj, OBJPROP_CORNER, 0);
ObjectSet(obj, OBJPROP_XDISTANCE, xPos);
ObjectSet(obj, OBJPROP_YDISTANCE, yPos);
ObjectSet(obj, OBJPROP_BACK, true);
}
Comments