OsMAII
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This custom technical indicator is designed to provide traders with a smoothed, refined visualization of market momentum. It operates by layering three different types of mathematical averages to filter out "market noise," helping users identify more reliable trends and potential turning points in price action.
How the Logic Works
The tool processes data in three distinct stages to arrive at its final visual output:
1. Calculating the Core Momentum First, the script looks at the speed of price movement by comparing two different "Exponential Moving Averages." One is set to a faster timeframe (to capture immediate changes) and the other to a slower timeframe (to capture the broader trend). By subtracting the slow average from the fast one, the script identifies the current strength and direction of the market's momentum.
2. Creating the Signal Baseline Once the initial momentum is established, the script performs a second calculation. It takes that raw momentum data and applies a "Simple Moving Average" to it. This acts as a smoothing agent, creating a secondary baseline or "signal line." The goal of this step is to stabilize the data so that minor, insignificant price fluctuations do not create false signals.
3. Final Output Construction The final value displayed on your chart is the result of subtracting the smoothed signal line from the core momentum data. By comparing these two values at the end of the process, the indicator provides a polished representation of market sentiment.
Practical Application for the User
Instead of looking at raw price spikes which can be erratic, this logic allows you to see a consolidated trend. When the resulting line moves significantly above or below the center zero-level, it indicates a strengthening trend in that direction. Because the script uses multiple layers of averaging, it aims to provide a cleaner, more stable visual than standard momentum oscillators, helping you distinguish between a temporary price "hiccup" and a sustained move.
//+------------------------------------------------------------------+
//| OsMAII.mq4 |
//| Copyright © 2004, MetaQuotes Software Corp. |
//| http://www.metaquotes.net/ |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2004, MetaQuotes Software Corp."
#property link "http://www.metaquotes.net/"
//---- indicator settings
#property indicator_separate_window
#property indicator_buffers 1
#property indicator_color1 Red
#property indicator_level1 0
//---- indicator parameters
extern int FastEMA=12;
extern int SlowEMA=26;
extern int SignalSMA=9;
//---- indicator buffers
double ind_buffer1[];
double ind_buffer2[];
double ind_buffer3[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- 2 additional buffers are used for counting.
IndicatorBuffers(3);
//---- drawing settings
SetIndexStyle(0,DRAW_LINE,STYLE_SOLID,3);
SetIndexDrawBegin(0,SignalSMA);
IndicatorDigits(MarketInfo(Symbol(),MODE_DIGITS)+2);
//---- 3 indicator buffers mapping
if(!SetIndexBuffer(0,ind_buffer1) &&
!SetIndexBuffer(1,ind_buffer2) &&
!SetIndexBuffer(2,ind_buffer3))
Print("cannot set indicator buffers!");
//---- name for DataWindow and indicator subwindow label
IndicatorShortName("OsMAII("+FastEMA+","+SlowEMA+","+SignalSMA+")");
//---- initialization done
return(0);
}
//+------------------------------------------------------------------+
//| Moving Average of Oscillator |
//+------------------------------------------------------------------+
int start()
{
int limit;
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-counted_bars;
//---- macd counted in the 1-st additional buffer
for(int i=0; i<limit; i++)
ind_buffer2[i]=iMA(NULL,0,FastEMA,0,MODE_EMA,PRICE_CLOSE,i)-iMA(NULL,0,SlowEMA,0,MODE_EMA,PRICE_CLOSE,i);
//---- signal line counted in the 2-nd additional buffer
for(i=0; i<limit; i++)
ind_buffer3[i]=iMAOnArray(ind_buffer2,Bars,SignalSMA,0,MODE_SMA,i);
//---- main loop
for(i=0; i<limit; i++)
ind_buffer1[i]=ind_buffer2[i]-ind_buffer3[i];
//---- done
return(0);
}
//+------------------------------------------------------------------+
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