TrendStrengthOpen
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The TrendStrength indicator is designed to provide traders with a visual representation of the underlying momentum and direction of a market's price movement. Rather than looking at raw price action, which can often be noisy and erratic, this tool calculates the "strength" of a trend by comparing different historical averages simultaneously.
How it Works
The logic operates by analyzing several Moving Averages (MA) at various intervals. It takes a primary short-term average as a baseline and measures how far away other longer-term averages are from that baseline.
Specifically, the script performs the following steps:
- Baseline Calculation: It identifies a core average price over a very short period.
- Comparative Analysis: It then calculates nine additional averages across a wide range of timeframes (spanning from 10 to 90 units).
- Variance Measurement: For each of these timeframes, the tool calculates the difference between the short-term baseline and the longer-term average. This helps determine if the price is "pulling away" from its historical mean or staying close to it.
- Averaging the Strength: Finally, the script adds all of these differences together and divides them by nine to create a single, unified value.
What this means for the user
The resulting line on your chart represents the aggregate trend strength.
- Positive Values: When the indicator moves above the zero line, it suggests that the short-term price momentum is stronger than the long-term average, indicating a bullish trend.
- Negative Values: When the indicator moves below the zero line, it suggests that the price is lagging behind or moving lower than the longer-term historical averages, indicating a bearish trend.
- Stability: Because this tool averages multiple different timeframes into one single value, it aims to provide a smoother, more reliable picture of market direction than looking at a single moving average alone. It helps identify when a trend is gaining significant "weight" or losing steam.
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TrendStrengthOpen
//+------------------------------------------------------------------+
//| TrendStrength.mq4 |
//| Xaoc 2006 |
//| http://forex.xcd.ru/ |
//+------------------------------------------------------------------+
#property copyright "][aoc 2006"
#property link "http://forex.xcd.ru/"
#property indicator_separate_window
#property indicator_buffers 1
#property indicator_color1 Orange
#property indicator_level1 0
//#property indicator_maximum 0.02
//#property indicator_minimum -0.02
double TS[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
IndicatorBuffers(1);
IndicatorShortName("TrendStrength");
SetIndexBuffer(0,TS);
SetIndexStyle(0, DRAW_LINE, STYLE_SOLID, 1, Orange);
SetIndexDrawBegin(0,2);
SetIndexLabel(0,"TS");
}
//+------------------------------------------------------------------+
//| Custor indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
int shift,counted_bars=IndicatorCounted();
double ma0, ma1, ma2, ma3, ma4, ma5, ma6, ma7, ma8, ma9, tmp;
if(counted_bars<0) return(-1);
if(counted_bars>0) counted_bars--;
shift=Bars-1;
while(shift>=0)
{
tmp= iMA(NULL,0, 5,0,MODE_SMA,PRICE_OPEN,shift);
ma1=tmp-iMA(NULL,0,10,0,MODE_SMA,PRICE_OPEN,shift);
ma2=tmp-iMA(NULL,0,20,0,MODE_SMA,PRICE_OPEN,shift);
ma3=tmp-iMA(NULL,0,30,0,MODE_SMA,PRICE_OPEN,shift);
ma4=tmp-iMA(NULL,0,40,0,MODE_SMA,PRICE_OPEN,shift);
ma5=tmp-iMA(NULL,0,50,0,MODE_SMA,PRICE_OPEN,shift);
ma6=tmp-iMA(NULL,0,60,0,MODE_SMA,PRICE_OPEN,shift);
ma7=tmp-iMA(NULL,0,70,0,MODE_SMA,PRICE_OPEN,shift);
ma8=tmp-iMA(NULL,0,80,0,MODE_SMA,PRICE_OPEN,shift);
ma9=tmp-iMA(NULL,0,90,0,MODE_SMA,PRICE_OPEN,shift);
TS[shift]=(ma1+ma2+ma3+ma4+ma5+ma6+ma7+ma8+ma9)/9;
shift--;
}
}
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