VininI_BB_MA_WPR(v1)
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This technical script is designed to provide traders with a sophisticated visual analysis of market momentum by combining three distinct mathematical concepts into a single, unified indicator. Rather than looking at price alone, it focuses on the "speed" and "volatility" of market movements to help identify potential trends and extremes.
Core Logic and Components
The indicator functions by processing data in layers, essentially refining the raw market information through several stages:
1. Momentum Transformation (WPR) The foundation of this tool is a momentum oscillator. The script takes raw price action and converts it into a relative value that oscillates within a specific range. This allows traders to see how strongly the market is moving in one direction compared to its recent history. The logic then adjusts this value to center it, making it easier to read on a standard scale.
2. Trend Smoothing (Moving Average) Because momentum data can often be "noisy" or jump around erratically, the script applies a Moving Average calculation specifically to that momentum data. This acts as a filter, smoothing out minor fluctuations to reveal the underlying trend of the momentum itself. It helps distinguish between temporary price spikes and actual shifts in market direction.
3. Volatility Boundaries (Bollinger Bands) Finally, the script calculates "envelopes" or boundaries around the smoothed momentum line. By calculating the standard deviation (volatility) of the data, it creates an upper and lower boundary.
- The Middle Line represents the average momentum.
- The Upper and Lower Bands represent the expected range of that momentum based on recent volatility.
How It Works Together
Instead of looking at Bollinger Bands on the price chart (which shows where the price is), this script applies those same logic principles to the momentum.
By observing how the smoothed momentum line interacts with its own upper and lower boundaries, a user can gain insights into whether the current market strength is reaching an "overextended" state or if it is beginning to consolidate. It essentially provides a map of "market energy," showing not just where the price is going, but how much force is behind the move and whether that force is becoming exhausted.
//+------------------------------------------------------------------+
//| VininI_BB_MA_WPR.v1.mq4 |
//| Victor Nicolaev |
//| vinin@mail.ru |
//+------------------------------------------------------------------+
#property copyright "Copyright 2008. Victor Nicolaev"
#property link "vinin@mail.ru"
#property indicator_separate_window
#property indicator_buffers 4
#property indicator_color1 Aqua
#property indicator_color2 Green
#property indicator_color3 Yellow
#property indicator_color4 Yellow
#property indicator_level1 0
#property indicator_level2 60
#property indicator_level3 -60
#property indicator_maximum 100
#property indicator_minimum -100
//---- input parameters
extern int WPR_Period= 55;
extern int MA_Period=3;
extern int MA_Mode =0;
extern int BB_Period=89;
extern double BB_Div=1.0;
extern int Limit=1440;
double WPR[];
double WPRMidle[];
double WPRUP[];
double WPRDN[];
double MA[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init() {
IndicatorBuffers(5);
SetIndexStyle(0,DRAW_LINE);
SetIndexStyle(1,DRAW_LINE);
SetIndexStyle(2,DRAW_LINE);
SetIndexStyle(2,DRAW_LINE);
SetIndexDrawBegin(0,WPR_Period+MA_Period+BB_Period);
SetIndexBuffer(0,MA);
SetIndexBuffer(1,WPRMidle);
SetIndexBuffer(2,WPRUP);
SetIndexBuffer(3,WPRDN);
SetIndexBuffer(4,WPR);
IndicatorShortName("MA_WPR("+WPR_Period+","+MA_Period+")");
SetIndexLabel(0,"MA(WPR)");
return(0); }
//+------------------------------------------------------------------+
int start() {
int limit1, limit2, limit3;
int counted_bars=IndicatorCounted();
int i;
if(counted_bars<0) return(-1);
if(counted_bars>0) counted_bars--;
limit1=Bars-counted_bars;
if (limit1>Limit && Limit>0) limit1 = Limit;
limit2=limit1;
limit3=limit2;
if (counted_bars==0) {
limit3=limit1;
limit2=limit3+BB_Period;
limit1=limit2+MA_Period;
}
for (i = limit1;i>=0;i--) WPR[i] = (iWPR(Symbol(),Period(),WPR_Period,i)+50.0)*2.0;
for (i = limit2;i>=0;i--) MA[i] = iMAOnArray(WPR,0,MA_Period,0,MA_Mode,i);
double tmp, tmp0;
for (i = limit3;i>=0;i--) {
tmp= (iBandsOnArray(WPR,0,BB_Period,1,0,MODE_UPPER,i)-
iBandsOnArray(WPR,0,BB_Period,1,0,MODE_LOWER,i))/2.0;
WPRMidle[i]=iMAOnArray(WPR,0,BB_Period,0,MODE_SMA,i);
WPRUP[i]=WPRMidle[i]+BB_Div*tmp;
WPRDN[i]=WPRMidle[i]-BB_Div*tmp;
}
return(0);
}// int start()
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