Var Mov Avg_v1
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This tool is designed to analyze market price movements by identifying underlying trends while attempting to filter out the "noise" often found in volatile trading environments. It functions as a sophisticated moving average that adjusts its sensitivity based on the current behavior of the market.
Core Logic and Functionality
The script operates through three primary mechanisms to provide a clearer picture of market direction:
1. Dynamic Trend Smoothing Unlike standard indicators that treat all price movements equally, this logic calculates a specific "noise" ratio. It looks at the magnitude of recent price changes compared to the total volatility over a set period. By doing this, the indicator can distinguish between significant structural moves in the market and minor, insignificant price fluctuations.
2. Adaptive Adjustment The script utilizes a dual-speed calculation (Fast and Slow coefficients). It compares the current speed of price action against a baseline. If the market is moving strongly, the indicator adjusts its smoothing factor to follow the trend more closely; if the market is stagnant or erratic, it maintains a steadier posture to avoid false signals.
3. Visual Trend Mapping The tool provides three distinct visual components on the chart:
- The Main Line: A smooth, continuous line that represents the calculated "Adjusted Moving Average." This serves as the primary visual guide for the current trend direction.
- Upward Signals: These appear as specific markers (arrows) when the indicator detects a positive shift in momentum that exceeds a pre-defined threshold. This helps identify potential buying opportunities or strengthening bullish trends.
- Downward Signals: Similarly, these markers appear when the indicator detects a negative shift in momentum exceeding the threshold, highlighting potential selling opportunities or weakening bearish trends.
How it assists the trader
By balancing speed and smoothness, this logic aims to provide a "cleaner" view of the market. It helps traders stay on the right side of a trend by highlighting clear directional shifts while ignoring the small, distracting price movements that often lead to premature entries or exits.
/*-----------------------------+
| |
| Shared by www.Aptrafx.com |
| |
+------------------------------*/
//+------------------------------------------------------------------+
//| AMA&AMAsig.mq4 |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2004, by GOODMAN & Mstera è AF "
#property indicator_chart_window
#property indicator_buffers 3
#property indicator_color1 Sienna
#property indicator_color2 Yellow
#property indicator_color3 Magenta
//---- input parameters
extern int periodAMA=52;
extern int nfast=5;
extern int nslow=20;
extern double G=2.0;
extern double dK=2.0;
//---- buffers
double kAMAbuffer[];
double kAMAupsig[];
double kAMAdownsig[];
//+------------------------------------------------------------------+
int cbars=0, prevbars=0, prevtime=0;
double slowSC,fastSC;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- indicators
SetIndexStyle(0,DRAW_LINE,0,2);
SetIndexStyle(1,DRAW_ARROW);
SetIndexArrow(1,159);
SetIndexStyle(2,DRAW_ARROW);
SetIndexArrow(2,159);
//SetIndexDrawBegin(0,nslow+nfast);
SetIndexBuffer(0,kAMAbuffer);
SetIndexBuffer(1,kAMAupsig);
SetIndexBuffer(2,kAMAdownsig);
IndicatorDigits(4);
//slowSC=0.064516;
//fastSC=0.2;
//cbars=IndicatorCounted();
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
int i,pos=0;
double noise=0.000000001,AMA,AMA0,signal,ER;
double dSC,ERSC,SSC,ddK;
if (prevbars==Bars) return(0);
//---- TODO: add your code here
slowSC=(2.0 /(nslow+1));
fastSC=(2.0 /(nfast+1));
cbars=IndicatorCounted();
if (Bars<=(periodAMA+2)) return(0);
//---- check for possible errors
if (cbars<0) return(-1);
//---- last counted bar will be recounted
if (cbars>0) cbars--;
pos=Bars-periodAMA-2;
AMA0=Close[pos+1];
while (pos>=0)
{
if(pos==Bars-periodAMA-2) AMA0=Close[pos+1];
signal=MathAbs(Close[pos]-Close[pos+periodAMA]);
noise=0.000000001;
for(i=0;i<periodAMA;i++)
{
noise=noise+MathAbs(Close[pos+i]-Close[pos+i+1]);
}
ER =signal/noise;
dSC=(fastSC-slowSC);
ERSC=ER*dSC;
SSC=ERSC+slowSC;
AMA=AMA0+(MathPow(SSC,G)*(Close[pos]-AMA0));
kAMAbuffer[pos]=AMA;
ddK=(AMA-AMA0);
if ((MathAbs(ddK)) > (dK*Point) && (ddK > 0)) kAMAupsig[pos] =AMA; else kAMAupsig[pos]=0;
if ((MathAbs(ddK)) > (dK*Point) && (ddK < 0)) kAMAdownsig[pos]=AMA; else kAMAdownsig[pos]=0;
AMA0=AMA;
pos--;
}
//----
prevbars=Bars;
return(0);
}
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