Schaff_Trend_Cycletes2
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This script functions as a technical analysis tool designed to identify market cycles and potential trend reversals. Instead of looking at raw price movements, it processes data through several layers of mathematical smoothing to filter out "noise" and highlight underlying momentum.
How the Logic Works
1. Base Movement Tracking (The Foundation) The tool begins by calculating two different types of Moving Averages (Short-term and Long-term). By subtracting the Long-term average from the Short-term average, it determines the "gap" between current price momentum and historical trends. This difference tells the script whether the market is currently moving faster or slower than its recent history.
2. Cycle Analysis and Range Mapping The script doesn't just look at the gap; it evaluates it over specific "cycles." It looks back at a set number of bars to identify the highest and lowest points reached by that momentum gap. It then calculates where the current price sits within that high-to-low range as a percentage. This effectively creates a "wave" that moves between 0 and 100, showing where we are in the current trend cycle.
3. Smoothing and Stability To prevent the visual data from jumping around erratically, the script applies a smoothing constant. It takes the results of the cycle analysis and blends them with previous values. This creates a fluid, curved line that represents the smoothed trend of the market cycle, making it easier for a user to see the general direction without getting distracted by minor price spikes.
4. Visual Signals (Alerts) The logic includes a built-in monitoring system for "Overbought" and "Oversold" conditions based on specific thresholds:
- Bullish Signal: If the trend line climbs above a specific high level (80) and then begins to drop back down, the script automatically places a Green vertical line on the chart.
- Bearish Signal: If the trend line falls below a specific low level (20) and then begins to move back up, the script places a Red vertical line on the chart.
Summary for the User
Essentially, this tool acts like a "momentum thermometer." It measures how hot or cold the market is moving relative to its history, smooths out the jitters of daily trading, and draws clear visual markers on your chart when the momentum reaches an extreme point and starts to turn around.
/*-----------------------------+
| |
| Shared by www.Aptrafx.com |
| |
+------------------------------*/
//+------------------------------------------------------------------+
//| Schaff Trend Cycle.mq4 |
//| Ramdass - Conversion only |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2004, FostarFX."
#property link "mail: fostar_fx@yahoo.com"
#property indicator_separate_window
#property indicator_minimum -10
#property indicator_maximum 110
#property indicator_buffers 1
#property indicator_color1 DarkOrchid
#property indicator_level2 20
#property indicator_level3 80
//---- input parameters
extern int MAShort=12;
extern int MALong=50;
extern double Cycle=10;
extern int CountBars=300;
//---- buffers
double MA[];
double ST[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
// string short_name;
//---- indicator line
IndicatorBuffers(2);
SetIndexBuffer(0, MA);
SetIndexBuffer(1, ST);
SetIndexStyle(0,DRAW_LINE,STYLE_SOLID,2,DarkOrchid);
//----
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custor indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
int shift=0;
//---- TODO: add your code here
for (shift=0;shift<=Bars-1;shift++)
{
ObjectDelete("vline1"+Time[shift]);
ObjectDelete("vline2"+Time[shift]);
}
//----
return(0);
}
//+------------------------------------------------------------------+
//| Schaff Trend Cycle |
//+------------------------------------------------------------------+
int start()
{
SetIndexDrawBegin(0,Bars-CountBars+MALong+MAShort+1);
int shift,u,counted_bars=IndicatorCounted();
double MCD, LLV, HHV, MA_Short, MA_Long, sum ,prev, smconst;
int n, i, s;
bool check_begin=false, check_begin_MA=false;
double MCD_Arr[100];
if(Bars<=MALong) return(0);
if (CountBars==0) CountBars=Bars;
//---- initial zero
if(counted_bars<MALong+MAShort)
{
for(i=1;i<=MALong;i++) MA[Bars-i]=0.0;
for(i=1;i<=MALong;i++) ST[Bars-i]=0.0;
}
//----
shift=CountBars-MALong-1;
// if(counted_bars>=MALong) shift=Bars-counted_bars-1;
check_begin = false;
check_begin_MA = false;
n = 1;
s = 1;
smconst = 2 / (1 + Cycle/2);
while(shift>=0)
{
MA_Short = iMA(NULL,0,MAShort,0, MODE_EMA, PRICE_TYPICAL, shift);
MA_Long = iMA(NULL,0,MALong,0, MODE_EMA, PRICE_TYPICAL, shift);
MCD_Arr[n] = MA_Short - MA_Long;
MCD = MA_Short - MA_Long;
if (n >= Cycle)
{
n = 1; check_begin = true; } else {n = n + 1;}
if (check_begin)
{
for (i = 1; i<=Cycle; i++)
{
if (i == 1) {LLV = MCD_Arr[i];}
else {
if (LLV > MCD_Arr[i]) LLV = MCD_Arr[i];
}
if (i == 1) {HHV = MCD_Arr[i];}
else {
if (HHV < MCD_Arr[i]) HHV = MCD_Arr[i];
}
}
ST[shift] = ((MCD - LLV)/(HHV - LLV))*100 + 0.01;
s = s + 1;
if (s >= (Cycle)/2)
{
s = 1;
check_begin_MA = true;
}
} else {ST[shift] = 0;}
if (check_begin_MA) {
prev = MA[shift + 1];
MA[shift] = smconst * (ST[shift] - prev) + prev; }
if (MA[shift]>20 && MA[shift+1]<20)
{
ObjectCreate("vline1"+Time[shift], OBJ_VLINE, 0, Time[shift], 0);
ObjectSet("vline1"+Time[shift], OBJPROP_WIDTH,3);
ObjectSet("vline1"+Time[shift], OBJPROP_STYLE, STYLE_SOLID);
ObjectSet("vline1"+Time[shift], OBJPROP_COLOR, LimeGreen);
}
if (MA[shift+1]>80 && MA[shift]<80)
{
ObjectCreate("vline2"+Time[shift], OBJ_VLINE, 0, Time[shift], 0);
ObjectSet("vline2"+Time[shift], OBJPROP_WIDTH,3);
ObjectSet("vline2"+Time[shift], OBJPROP_STYLE, STYLE_SOLID);
ObjectSet("vline2"+Time[shift], OBJPROP_COLOR, Red);
}
Comment( MA[shift],MA[shift+1]);
shift--;
}
return(0);
}
//+------------------------------------------------------------------+
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