SVS_Oscillator
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Technical Overview: SVS Oscillator Logic
The SVS Oscillator is a custom technical analysis tool designed to interpret market momentum and price trends by analyzing multiple layers of weighted moving averages simultaneously. Instead of relying on a single price point, this script evaluates the relationship between several different timeframes (periods) to identify where the current market "energy" is heading.
Core Methodology
The logic operates by calculating several distinct moving averages across various lengths. These lengths are determined by a user-selected "Period" setting (ranging from 1 to 8). Each selection adjusts the sensitivity of the oscillator, allowing it to react differently to short-term fluctuations versus long-term trends.
The script processes these averages through three main stages:
1. Data Aggregation For every price point on the chart, the tool calculates several weighted averages. It focuses on the relationship between "short," "medium," and "long" data points. By using weighted averages rather than simple ones, the tool prioritizes more recent price actions while still maintaining a connection to historical data.
2. Differential Analysis The script creates specific mathematical "differences" (represented as $d1$, $d11$, and $d111$ in the logic). It does this by:
- Comparing the midpoint of two moving averages against the weighted sum of others.
- Measuring the gap between current price trends and previous trend markers.
- Calculating the velocity at which these prices are moving relative to one another.
Essentially, it is looking for "divergence"—instances where short-term momentum is moving in a different direction than long-term momentum.
3. Signal Visualization The final output is displayed as a histogram with four distinct colors (Blue, Red, Brown, and Green). The script uses a series of conditional checks to decide which color to display based on the interaction of the three calculated differences:
- Trend Confirmation: If the primary trend and the secondary trend are moving in the same direction (both positive or both negative), the script identifies this as a continuous movement.
- Trend Reversal/Conflict: If one difference is positive while another is negative, it indicates a conflict in momentum. The script switches colors to highlight these "cross-over" moments where the market might be losing steam or preparing for a change in direction.
Summary for the Trader
Think of this oscillator as a multi-layered filter. While a standard moving average tells you what the price is doing, this script tells you how aggressively and consistently it is doing it. By looking at the color changes in the histogram, a trader can visually identify areas of high agreement between different timeframes or pinpoint specific moments where the short-term trend is starting to break away from the long-term path.
//+------------------------------------------------------------------+
//| SVS_Oscillator 03.05.2008. |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2010"
#property link ""
#property indicator_separate_window
#property indicator_buffers 4
#property indicator_color1 Blue
#property indicator_color2 Red
#property indicator_color3 Brown
#property indicator_color4 Green
extern int period=1;
//---- buffers
double ExtMapBuffer1[];
double ExtMapBuffer2[];
double ExtMapBuffer3[];
double ExtMapBuffer4[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- indicators
SetIndexStyle(0,DRAW_HISTOGRAM,0,2);
SetIndexBuffer(0,ExtMapBuffer1);
SetIndexStyle(1,DRAW_HISTOGRAM,0,2);
SetIndexBuffer(1,ExtMapBuffer2);
SetIndexStyle(2,DRAW_HISTOGRAM,0,2);
SetIndexBuffer(2,ExtMapBuffer3);
SetIndexStyle(3,DRAW_HISTOGRAM,0,2);
SetIndexBuffer(3,ExtMapBuffer4);
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
double d1,d11,d111;
double a1,a11,a111,a1111,a2,a22,a222,a2222,a3,a33,a333,a3333;
double a4,a44,a444,a4444,a5,a55,a555,a5555,a6,a66,a666,a6666;
double z,m1,m2,m3,m4,m5,mp1,mp2,mp3,mp11,mp22,mp33;
int pp1,pp2,pp3,pp4,p1,p2,p3,p4,p5,MODE;
if (period==1) {p1=5;p2=15;p3=60;p4=240;p5=1440;}
if (period==2) {p1=3;p2=12;p3=48;p4=288;p5=1440;}
if (period==3) {p1=4;p2=16;p3=96;p4=480;p5=1920;}
if (period==4) {p1=4;p2=24;p3=120;p4=480;p5=1920;}
if (period==5) {p1=6;p2=30;p3=120;p4=480;p5=1920;}
if (period==6) {p1=5;p2=20;p3=80;p4=320;p5=1280;}
if (period==7) {p1=4;p2=16;p3=64;p4=256;p5=1024;}
if (period==8) {p1=4;p2=16;p3=64;p4=256;p5=1024;}
pp1=(p1+p2);pp2=(p2+p3);pp3=(p3+p4);
int limit;
int counted_bars=IndicatorCounted();
if(counted_bars>0) counted_bars--;
limit=Bars-counted_bars-1;
for(int i=0;i<=limit;i++){
//------------------------------------------------------
MODE=0;
z=iMA(NULL,0,1,0,MODE,PRICE_WEIGHTED,i);
m1=iMA(NULL,0,p1,0,MODE,PRICE_WEIGHTED,i);
m2=iMA(NULL,0,p2,0,MODE,PRICE_WEIGHTED,i);
m3=iMA(NULL,0,p3,0,MODE,PRICE_WEIGHTED,i);
m4=iMA(NULL,0,p4,0,MODE,PRICE_WEIGHTED,i);
mp1=iMA(NULL,0,pp1,0,MODE,PRICE_WEIGHTED,i);
mp11=iMA(NULL,0,pp1/2,0,MODE,PRICE_WEIGHTED,i);
mp2=iMA(NULL,0,pp2,0,MODE,PRICE_WEIGHTED,i);
mp22=iMA(NULL,0,pp2/2,0,MODE,PRICE_WEIGHTED,i);
mp3=iMA(NULL,0,pp3,0,MODE,PRICE_WEIGHTED,i);
mp33=iMA(NULL,0,pp3/2,0,MODE,PRICE_WEIGHTED,i);
//-----------------------------------------
a1=(m1+m2)/2;
a2=(mp1+z)/2;
a3=a1-mp11;
a4=a2-mp11;
a5=a2-a1;
a6=m1-m2;
d1=(a3+a4+a5+a6);
//---------
a11=(m2+m3)/2;
a22=(mp2+z)/2;
a33=a11-mp22;
a44=a22-mp22;
a55=a22-a11;
a66=m2-m3;
d11=(a33+a44+a55+a66);
//---------
a111=(m3+m4)/2;
a222=(mp3+z)/2;
a333=a111-mp33;
a444=a222-mp33;
a555=a222-a111;
a666=m3-m4;
d111=(a333+a444+a555+a666);
//---------
if (d1>0 && d11<0) ExtMapBuffer1[i]=d1;
if (d1<0 && d11>0) ExtMapBuffer2[i]=d1;
if (d1>0 && d11>0) ExtMapBuffer2[i]=d1;
if (d1<0 && d11<0) ExtMapBuffer1[i]=d1;
if (d11>0 && d111>0) ExtMapBuffer3[i]=d1;
if (d11<0 && d111<0) ExtMapBuffer4[i]=d1;
if (d1>0 && d11>0) ExtMapBuffer2[i]=d1;
if (d1<0 && d11<0) ExtMapBuffer1[i]=d1;
if (d1>0 && d11<0) ExtMapBuffer1[i]=d1;
if (d1<0 && d11>0) ExtMapBuffer2[i]=d1;
}
return(0);
}
//+--------------------------------+
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