Schaff Trend s
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The Schaff Trendy is a technical analysis tool designed to help traders visualize market trends by smoothing out price fluctuations and identifying clear directional movements. It works by combining three distinct layers of calculation: moving averages, price oscillators, and signal smoothing.
How the Logic Works
1. The Foundation: Moving Averages The script begins by looking at the price data and calculating two different types of Exponential Moving Averages (EMAs). One is a "Short" average (which reacts quickly to recent price changes) and the other is a "Long" average (which tracks the broader, slower trend). By subtracting the long average from the short average, the tool creates a "Difference" value. This helps isolate the momentum of the market regardless of whether the price is high or low.
2. The Oscillator: Identifying Ranges Once the difference between the two moving averages is established, the script evaluates this data over a specific window of time (defined by the cycle). It looks for the highest and lowest points reached within that window. It then calculates where the current momentum sits relative to those extremes as a percentage. This turns the raw data into an oscillator—a visual representation of whether the trend is currently pushing toward its recent highs or lows.
3. The Smoothing: Refining the Trend Because raw oscillators can be "choppy" and jump around rapidly, the script applies a final layer of smoothing to the data. It uses a mathematical constant to blend the current smoothed value with the previous one. This creates the primary trend line you see on your chart, which aims to filter out "market noise" and provide a cleaner, more reliable path for identifying whether the market is trending up or down.
4. The Signal: Final Verification Finally, the script calculates a "Signal Line." This is essentially a moving average of the trend line itself. When the main trend line moves significantly above or below this signal line, it acts as a visual confirmation of a change in momentum.
Summary for Traders
In simple terms, this script takes raw price movement, strips away the volatility to find the underlying momentum, scales that momentum into a readable percentage, and then smooths out the "wiggles" so you can see the clear path of the market. It is designed to help you stay on the right side of a trend by providing a clear, visual flow of market direction.
//+------------------------------------------------------------------+
//| Schaff Trendy.mq4 |
//| Copyright © 2004, MetaQuotes Software Corp. |
//| http://www.metaquotes.net/ |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2004, MetaQuotes Software Corp."
#property link "perky_z@yahoo.com & Darkstonexa@yahoo.com.au"
#property indicator_separate_window
#property indicator_buffers 2
#property indicator_color1 LightSeaGreen
#property indicator_color2 Red
//---- input parameters
extern int SigPeriod = 23;
extern int MAShort = 23;
extern int MALong = 50;
extern int Cycle = 10;
extern int BarsCount = 500;
//----
int shift=0;
double MCD=0, LLV=0, HHV=0, i=0, s=0 ,MA_Short=0, MA_Long=0, ST=0;
double smconst=0;
bool check_begin=false;
bool check_begin_MA=false;
int sum=0, n=0, bars_=0;
double MA=0.0, prev=0.0;
double MCD_Arr[500];
//---- buffers
double TrendBuffer[];
double SignalBuffer[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- 3 additional buffers are used for counting.
IndicatorBuffers(2);
//---- indicator buffers
SetIndexBuffer(0, TrendBuffer);
SetIndexStyle(0, DRAW_LINE);
SetIndexBuffer(1, SignalBuffer);
SetIndexStyle(1, DRAW_LINE);
//---- name for DataWindow and indicator subwindow label
IndicatorShortName("Schaff Trend(" + Cycle + ")");
SetIndexDrawBegin(0, BarsCount);
return(0);
}
//+------------------------------------------------------------------+
//| Schaff Trendy |
//+------------------------------------------------------------------+
int start()
{
check_begin = false;
check_begin_MA = false;
n = 1;
s = 1;
double a = 1 + Cycle / 2;
smconst = 1 / a;
if(BarsCount > 0)
{
if(BarsCount > Bars)
{
bars_ = Bars;
}
else
{
bars_ = BarsCount;
}
}
for(shift = bars_ ; shift >= 0; shift--)
{
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(int 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 = ((MCD - LLV) / (HHV - LLV))*100 + 0.01;
s = s + 1;
if(s >= (Cycle) / 2)
{
s = 1;
check_begin_MA = true;
}
}
else ST = 0;
if(check_begin_MA)
{
prev = TrendBuffer[shift+1];
MA = smconst*(ST - prev) + prev;
//Comment ("\nMa= ",MA,"\nPrev= ",prev,"\nST= ",ST,"\nLLV= ",LLV,"\nHHV= ",HHV,"\nMCD= ",MCD,"\nTrendBuffer= ",TrendBuffer[shift-1],"\n smsconst ",smconst);
TrendBuffer[shift]=MA;
}
}
for(shift = bars_ ; shift >= 0; shift--)
{
SignalBuffer[shift]=iMAOnArray(TrendBuffer,0,SigPeriod,0,MODE_EMA,shift);
}
return(0);
}
//+------------------------------------------------------------------+
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