Skyscraper
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This script functions as a dynamic technical analysis tool designed to identify market trends by creating a "staircase" or "step" movement on a price chart. Rather than following every minor fluctuation in price, this logic filters out noise to highlight the primary direction of the market.
Core Logic and Mechanics
1. Volatility Measurement The script begins by assessing the current market environment. It calculates the average range of price movements (the distance between highs and lows) over a specific period. This allows the tool to understand whether the market is currently experiencing high volatility or relative calm. Based on this, it determines a "Step Size"—essentially the height of each vertical move in the staircase.
2. Establishing Price Boundaries Depending on your settings, the script looks at either the absolute High and Low prices or the Closing prices to establish boundaries. It creates a "buffer zone" around these values. This zone acts as a threshold that the price must break through before the indicator recognizes a change in trend.
3. Trend Detection (The Staircase Effect) The logic follows a specific rule for identifying movement:
- Upward Trend: If the current price closes above the upper boundary established in the previous period, the script switches to an upward trend. It then builds a "step" upward.
- Downward Trend: If the current price closes below the lower boundary from the previous period, the script switches to a downward trend and builds a "step" downward.
4. Stability Features One of the key features of this logic is its "memory." When moving in an upward trend, the script ensures that the base of the step never moves lower than it was in the previous step. Conversely, in a downward trend, it ensures the top of the step never moves higher. This creates a clean, jagged staircase appearance that prevents the indicator from retracing backward during minor pullbacks, effectively "locking in" the established trend.
Visual Representation
The tool provides visual feedback to help traders quickly identify market status:
- Trend Lines: It plots the calculated path of the steps on your chart.
- Color Coding: It can change colors dynamically to differentiate between bullish (upward) and bearish (downward) movements, allowing for immediate recognition of the current market bias.
- Offsetting: The script includes an option to shift the visual lines forward or backward, providing flexibility in how the data is displayed relative to the current live price.
In summary, this script acts as a trend-following filter. It ignores minor price "jitters" and only updates its direction when price action convincingly breaks through a volatility-adjusted boundary, resulting in a clear, step-like visualization of market momentum.
//+------------------------------------------------------------------+
//| StepMA_v6.4.mq4 |
//| Copyright © 2006, TrendLaboratory |
//| http://finance.groups.yahoo.com/group/TrendLaboratory |
//| E-mail: igorad2004@list.ru |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2006, TrendLaboratory"
#property link "http://finance.groups.yahoo.com/group/TrendLaboratory"
#property indicator_chart_window
#property indicator_buffers 3
#property indicator_color1 LightBlue
#property indicator_color2 Blue
#property indicator_color3 Red
//---- input parameters
extern int Length=10; // ATR Length
extern double Kv=0.9; // Sensivity Factor
extern int StepSize=0; // Constant Step Size (if need)
extern int Advance=0; // Offset
extern double Percentage=0; // Up/down moving percentage
extern bool HighLow=false; // High/Low Mode Switch (more sensitive)
extern bool Color=true; // Color Mode Switch
extern int BarsNumber=0; // Counted bars
//---- indicator buffers
double LineBuffer[];
double UpBuffer[];
double DnBuffer[];
double smin[];
double smax[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
string short_name;
//---- indicator line
IndicatorBuffers(5);
SetIndexStyle(0,DRAW_NONE,STYLE_SOLID,1);
SetIndexStyle(1,DRAW_LINE);
SetIndexStyle(2,DRAW_LINE);
SetIndexArrow(1,159);
SetIndexArrow(2,159);
SetIndexShift(0,Advance);
SetIndexShift(1,Advance);
SetIndexShift(2,Advance);
SetIndexBuffer(0,LineBuffer);
SetIndexBuffer(1,UpBuffer);
SetIndexBuffer(2,DnBuffer);
SetIndexBuffer(3,smin);
SetIndexBuffer(4,smax);
IndicatorDigits(MarketInfo(Symbol(),MODE_DIGITS));
//---- name for DataWindow and indicator subwindow label
short_name="Skyscraper("+StepSize+","+Kv+","+StepSize+")";
IndicatorShortName(short_name);
SetIndexLabel(0,short_name);
SetIndexLabel(1,"UpTrend");
SetIndexLabel(2,"DownTrend");
//----
SetIndexEmptyValue(0,0.0);
SetIndexEmptyValue(1,0.0);
SetIndexEmptyValue(2,0.0);
SetIndexDrawBegin(0,Length);
SetIndexDrawBegin(1,Length);
SetIndexDrawBegin(2,Length);
//----
return(0);
}
//+------------------------------------------------------------------+
//| StepMA_v6 |
//+------------------------------------------------------------------+
int start()
{
int i,shift,trend,Step;
double smin0,smax0,smin1,smax1,ATRmin=1000000,ATRmax=-1000000,AvgRange,ATR0;
if(BarsNumber>0) int Nbars=BarsNumber; else Nbars=Bars;
for(shift=Nbars-1-Length;shift>=0;shift--)
{
if( StepSize==0 )
{
AvgRange=0;
for (i=Length;i>=1;i--)
{
AvgRange+= (High[shift+i]-Low[shift+i]);
}
ATR0 = AvgRange/Length;
if (shift>0)
{
if (ATR0>ATRmax) ATRmax=ATR0;
if (ATR0<ATRmin) ATRmin=ATR0;
}
Step=0.5*Kv*(ATRmax+ATRmin)/Point;
}
else
{Step=Kv*StepSize;}
Comment (" WARP_SPEED to boldly go were no men has gon before= ", Step);
if (HighLow)
{
smax[shift]=Low[shift]+2.0*Step*Point;
smin[shift]=High[shift]-2.0*Step*Point;
}
else
{
smax[shift]=Close[shift]+2.0*Step*Point;
smin[shift]=Close[shift]-2.0*Step*Point;
}
if (Close[shift]>smax[shift+1]) trend=1;
if (Close[shift]<smin[shift+1]) trend=-1;
if(trend>0)
{
if(smin[shift]<smin[shift+1]) smin[shift]=smin[shift+1];
double Line=smin[shift]+Step*Point;
if(Color) {UpBuffer[shift]=smin[shift];DnBuffer[shift]=-1.0;}
}
else
{
if(smax[shift]>smax[shift+1]) smax[shift]=smax[shift+1];
Line=smax[shift]-Step*Point;
if(Color) {DnBuffer[shift]=smax[shift];UpBuffer[shift]=-1.0;}
}
LineBuffer[shift]=Line+Percentage/100.0*Step*Point;
}
return(0);
}
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