smFisherTransform3_impr
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This script is a specialized technical analysis tool designed for the MetaTrader platform to help traders identify shifts in market momentum and trend direction. It utilizes an advanced version of the Fisher Transform, which is a mathematical method used to "normalize" price action, making it easier to see significant changes in trends that might otherwise be obscured by erratic price movements.
Core Functionality
The logic operates by calculating the relationship between the current price and the high/low extremes over a specific timeframe (the period). It essentially measures where the current price sits within its recent range and applies a transformation to highlight momentum. The script offers two distinct calculation modes:
- Standard Mode: Uses a traditional weighted calculation to smooth out price data.
- Ehlers Formula: Employs a specific mathematical variation (based on John Ehlers' theories) that adjusts the weighting of the data to provide a different perspective on market sensitivity.
Visual Logic and Trend Detection
Instead of just showing raw numbers, the tool translates these calculations into visual cues:
- Histogram Visualization: The script generates a histogram in a separate window. It tracks the movement of the transformed price values to determine if the momentum is pushing upward or downward.
- Color Coding: It differentiates between bullish and bearish movements using distinct colors (Aqua for upward trends and Red for downward trends). When the trend shifts, the histogram switches colors to provide an immediate visual signal to the user.
Alert System
To ensure traders can react quickly without constantly staring at the screen, the script includes an automated notification system. It monitors the transition points where the momentum flips from positive to negative (or vice versa). When a trend change is detected on the most recent bar of data:
- Trend Change Detection: It identifies exactly when the indicator switches from an "Up" state to a "Down" state.
- Real-time Notifications: It triggers an audible alert and a pop-up message specifying whether the trend is moving Up or Down, along with the current timeframe and currency symbol being analyzed.
- Smart Filtering: The logic includes safeguards to ensure that alerts are only triggered once per trend change, preventing the system from sending multiple repetitive notifications for the same move.
In summary, this tool acts as a momentum "filter," converting complex price oscillations into clear, color-coded trend signals and automated alerts to help traders identify potential reversals or continuations in the market.
//+------------------------------------------------------------------+
//| smFisherTransform3.mq4 |
//| Copyright © 2009.06.17, SwingMan |
//| fxfariz@gmail,com |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2009.06.17, SwingMan"
#property link ""
/*--------------------------------------------------------------------
Source code:
//+------------------------------------------------------------------+
//| fxfariz_scalpingM5.mq4 |
//| fxfariz a.k.a warrior trader |
//| fxfariz@gmail,com |
//+------------------------------------------------------------------+
#property copyright "fxfariz a.k.a warrior trader"
#property link "fxfariz@gmail,com"
- Alert improvement: swissly, post #2258
http://www.forexfactory.com/showthread.php?t=165948&page=151
//------------------------------------------------------------------*/
//improved , FF
#property indicator_separate_window
#property indicator_buffers 3
#property indicator_color2 Aqua
#property indicator_color3 Red
#property indicator_style2 STYLE_SOLID
#property indicator_style3 STYLE_SOLID
#property indicator_width2 2
#property indicator_width3 2
//-------------------------------------------------------------------
extern int period=8;
extern bool alarm=true;
extern bool EhlersFormula = true;
//-------------------------------------------------------------------
double ExtBuffer0[];
double ExtBuffer1[];
double ExtBuffer2[];
double alertBar;
double last;
int init()
{
SetIndexStyle(0,DRAW_NONE);
SetIndexStyle(1,DRAW_HISTOGRAM);
SetIndexStyle(2,DRAW_HISTOGRAM);
IndicatorDigits(Digits+1);
SetIndexBuffer(0,ExtBuffer0);
SetIndexBuffer(1,ExtBuffer1);
SetIndexBuffer(2,ExtBuffer2);
IndicatorShortName("smFisherTransform3_impr " +" ("+period+")");
SetIndexLabel(1,NULL);
SetIndexLabel(2,NULL);
return(0);
}
int start()
{
int limit;
int counted_bars=IndicatorCounted();
double prev,current,old;
double Value=0,Value1=0,Value2=0,Fish=0,Fish1=0,Fish2=0;
double price;
double MinL=0;
double MaxH=0;
if(counted_bars>0) counted_bars--;
limit=Bars-counted_bars;
//for(int i=0; i<Bars; i++)
for(int i=0; i<limit; i++)
{
MaxH = High[Highest(NULL,0,MODE_HIGH,period,i)];
MinL = Low[Lowest(NULL,0,MODE_LOW,period,i)];
price = (High[i]+Low[i])/2;
if (EhlersFormula == false) {
if(MaxH-MinL == 0) Value = 0.33*2*(0-0.5) + 0.67*Value1;
else Value = 0.33*2*((price-MinL)/(MaxH-MinL)-0.5) + 0.67*Value1;
}
else
{
if(MaxH-MinL == 0) Value = 0.5*2*(0-0.5) + 0.5*Value1;
else Value = 0.25*2*((price-MinL)/(MaxH-MinL)-0.5) + 0.75*Value1;
//else Value = 0.5*2*((price-MinL)/(MaxH-MinL)-0.5) + 0.5*Value1; //original Ehlers
}
if (EhlersFormula == false)
Value=MathMin(MathMax(Value,-0.999),0.999);
else
if (EhlersFormula == true) {
if (Value > 0.9999) Value = 0.9999;
if (Value < -0.9999) Value = -0.9999;
}
if (EhlersFormula == false) {
if(1-Value == 0) ExtBuffer0[i]=0.5+0.5*Fish1;
else ExtBuffer0[i]=0.5*MathLog((1+Value)/(1-Value))+0.5*Fish1;
}
else
{
if(1-Value == 0) ExtBuffer0[i]=0.25+0.75*Fish1;
else ExtBuffer0[i]=0.1*MathLog((1+Value)/(1-Value))+0.9*Fish1; //original Ehlers is 0.25/0.5...?
}
Value1=Value;
Fish1=ExtBuffer0[i];
}
bool up=true;
//for(i=Bars; i>=0; i--) {
for(i=limit; i>=0; i--) {
current=ExtBuffer0[i];
prev=ExtBuffer0[i+1];
if (((current<0)&&(prev>0))||(current<0)) up= false;
if (((current>0)&&(prev<0))||(current>0)) up= true;
if(!up) {
ExtBuffer2[i]=current;
ExtBuffer1[i]=0.0;
if (alarm == true) {
if (i==0 && prev != 2 && ExtBuffer1[i] == 0 && Bars>alertBar) {
Alert("ForexTrend Changing Down on ",Period()," ",Symbol());
alertBar = Bars;
last = 2;
}
}
}
else {
ExtBuffer1[i]=current;
ExtBuffer2[i]=0.0;
if (alarm == true) {
if (i==0 && last != 1 && ExtBuffer2[i] == 0 && Bars>alertBar) {
Alert("ForexTrend Changing Up on ",Period()," ",Symbol());
alertBar = Bars;
last = 1;
}
}
}
}
return(0);
}
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