T3_iAnchMom_v2
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This tool is a technical indicator designed to provide traders with a clearer picture of market momentum by filtering out the "noise" typically found in standard price movements. It functions as a visual guide, appearing in a separate window below your main trading chart to help identify the underlying strength or weakness of a trend.
Core Logic and Methodology
The logic behind this script relies on a multi-layered smoothing process. Rather than looking at simple price changes (which can be erratic), it processes the data through two distinct mathematical filters:
- Layered Smoothing (T3 Style): The script utilizes an advanced smoothing technique that goes beyond standard moving averages. By cascading several layers of calculations, it minimizes the "lag" usually associated with smooth indicators while still effectively removing jagged, insignificant price fluctuations. This allows the resulting line to stay closer to the actual price action while remaining fluid.
- Comparative Momentum: The script calculates two different versions of these smoothed values based on specific user-defined periods (short-term and long-term). It then performs a comparative calculation between these two results.
- Percentage Scaling: The final output is converted into a percentage. This translates the raw difference between the long-term and short-term momentum into a relative figure, making it easier for a trader to see how much "extra" strength or weakness is currently present in the market relative to its recent history.
How to Interpret the Results
The indicator produces a single teal line on your chart:
- Trend Strength: When the line moves upward, it indicates that short-term momentum is accelerating faster than the long-term average, suggesting bullish strength.
- Trend Weakness: When the line moves downward, it suggests that the price is losing steam or retreating, indicating bearish pressure.
- Momentum Shifts: By observing the steepness of the line, traders can gauge the intensity of a move; a very sharp incline or decline represents a high-velocity trend, while a flattening line suggests the market is moving into a period of consolidation or equilibrium.
By using this logic, the tool helps you distinguish between a temporary price spike and a meaningful shift in market momentum, providing a more stable foundation for making informed trading decisions.
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T3_iAnchMom_v2
//+------------------------------------------------------------------+
//| T3_iAnchMom.mq4 |
//| Ramdass - Conversion only |
//+------------------------------------------------------------------+
#property indicator_separate_window
#property indicator_buffers 1
#property indicator_color1 Teal
//---- input parameters
extern int EMA_period=3;
extern int MomPeriod=8;
extern int CountBars=300;
//---- buffers
double MomBuffer[];
double e1,e2,e3,e4,e5,e6,e7,e8,e9,e10,e11,e12;
double c1,c2,c3,c4;
double n,n1,w1,w2,b2,b3,w3,w4,b;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- indicator line
IndicatorBuffers(1);
SetIndexBuffer(0, MomBuffer);
SetIndexStyle(0,DRAW_LINE,STYLE_SOLID,2,Teal);
// SetIndexDrawBegin(0,Bars-CountBars+(MomPeriod*2)*EMA_period);
//---- name for DataWindow and indicator subwindow label
// short_name="iAnchMom("+MomPeriod+")";
// IndicatorShortName(short_name);
// SetIndexLabel(0,short_name);
//---- variable reset
/*e1=0; e2=0; e3=0; e4=0; e5=0; e6=0;
c1=0; c2=0; c3=0; c4=0;
n=0;n1=0;
w1=0; w2=0; w3=0; w4=0;
b2=0; b3=0;*/
b=0.7;
b2=b*b;
b3=b2*b;
c1=-b3;
c2=(3*(b2+b3));
c3=-3*(2*b2+b+b3);
c4=(1+3*b+b3+3*b2);
n=EMA_period;
n1=MomPeriod + MomPeriod + 1;
//----
if (n<1) n=1;
n=1 + 0.5*(n-1);
w1=2/(n + 1);
w2=1 - w1;
if (n1<1) n1=1;
n1=1 + 0.5*(n1-1);
w3=2/(n1 + 1);
w4=1 - w3;
return(0);
}
//+------------------------------------------------------------------+
//| T3_iAnchMom |
//+------------------------------------------------------------------+
int start()
{
SetIndexDrawBegin(0,Bars-CountBars+(MomPeriod*2)*EMA_period);
int i,counted_bars=IndicatorCounted();
double a,c;
// int SMA_Period = MomPeriod + MomPeriod + 1;
if(Bars<=n1) return(0);
//---- initial zero
if(counted_bars<n1)
for(i=1;i<=n1;i++) MomBuffer[Bars-i]=0.0;
//----
i=CountBars-1;
if(counted_bars>=1) i=CountBars-counted_bars-1;
while(i>=0)
{
e1=w1*Close[i] + w2*e1;
e2=w1*e1 + w2*e2;
e3=w1*e2 + w2*e3;
e4=w1*e3 + w2*e4;
e5=w1*e4 + w2*e5;
e6=w1*e5 + w2*e6;
//
a=c1*e6 + c2*e5 + c3*e4 + c4*e3;
//
e7=w3*Close[i] + w4*e7;
e8=w3*e7 + w4*e8;
e9=w3*e8 + w4*e9;
e10=w3*e9 + w4*e10;
e11=w3*e10 + w4*e11;
e12=w3*e11 + w4*e12;
//
c=c1*e12 + c2*e11 + c3*e10 + c4*e9;
//a = iMA(NULL,0,EMA_period,0, MODE_EMA,PRICE_CLOSE, i);
//b = iMA(NULL,0,SMA_Period,0, MODE_SMA, PRICE_CLOSE, i);
MomBuffer[i]= 100*((a/c)-1);
i--;
}
return(0);
}
//+------------------------------------------------------------------+
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