alx_RSI_BANDS_MA
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This custom technical indicator is designed to provide a comprehensive visual overview of market momentum and price volatility by layering three distinct mathematical concepts onto a single display window. Instead of looking at raw price action alone, it transforms the Relative Strength Index (RSI) into a multi-dimensional analytical tool.
Core Operational Logic
The script functions by performing several sequential calculations based on the Relative Strength Index (RSI). Rather than simply displaying the RSI as a standalone value, the indicator treats the RSI data as its primary foundation to generate three additional layers of information:
1. Momentum Smoothing (Moving Average) The tool calculates a Moving Average (MA) specifically derived from the RSI values. By smoothing out the fluctuations of the RSI, this provides a clearer picture of the underlying trend in market momentum. Users can choose different types of smoothing (such as Simple, Exponential, or Linear Weighted) to adjust how quickly or slowly the indicator reacts to new price changes.
2. Dynamic Volatility Boundaries (Bollinger Bands) The most unique aspect of this script is that it applies Bollinger Bands directly to the RSI data. Typically, Bollinger Bands are applied to price; here, they create a "channel" around the momentum line.
- Upper and Lower Bands: These represent volatility limits based on the current momentum.
- Main Band (Middle Line): This serves as a baseline for the smoothed momentum.
Visual Interpretation
By combining these elements, the indicator allows you to see not just "if" the market is moving strongly (RSI), but where that movement sits in relation to its recent history:
- Trend Identification: The Moving Average helps filter out minor "noise," showing the general direction of momentum.
- Overextended Analysis: The Bands provide a visual boundary for momentum. When the RSI moves toward or outside these bands, it suggests that momentum may be reaching an extreme point.
- Real-Time Data Tracking: The script provides a live on-screen summary, displaying the exact numerical values of the current RSI, the Bollinger Main Band, and the Moving Average directly on your chart for quick reference.
In summary, this tool is built for traders who want to analyze momentum with more nuance, identifying potential trend shifts and volatility extremes within the Relative Strength Index.
//+------------------------------------------------------------------+
//| alx_RSI_BANDS_MA.mq4 |
//| alx_Babon |
//+------------------------------------------------------------------+
#property copyright "alx_Babon"
#property link "babon82@gmail.com"
#property indicator_separate_window
#property indicator_buffers 6
#property indicator_color1 Yellow
#property indicator_color2 DarkBlue
#property indicator_color3 White
#property indicator_color4 White
#property indicator_color5 White
//---- input parameters
extern int RSI_Per=8;
extern int MA_Per=8;
extern int Bands_Per=20;
extern int SmoothType=0;
//---- buffers
double ExtMapBuffer1[];
double ExtMapBuffer2[];
double ExtMapBuffer3[];
double ExtMapBuffer4[];
double ExtMapBuffer5[];
double ExtMapBuffer6[];
double Sostoyanie;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- indicators
string type;
switch(SmoothType)
{
case MODE_EMA: type="EMA";break;
case MODE_SMMA: type="SMMA";break;
case MODE_LWMA: type="LWMA";break;
default: type="LWMA";SmoothType=0;break; // åñëè íè îäèí âàðèàíò íå ïîäîøåë
}
SetIndexStyle(0,DRAW_LINE,0,1);
SetIndexBuffer(0,ExtMapBuffer1);//Ñâîéñòâà RSI
SetIndexLabel(0,"RSI("+RSI_Per+")");
SetIndexStyle(1,DRAW_LINE,0,2);
SetIndexBuffer(1,ExtMapBuffer2);//Ñâîéñòâà MA
SetIndexLabel(1,"MA ("+MA_Per+"), "+type);
SetIndexStyle(2,DRAW_LINE,2,1);
SetIndexBuffer(2,ExtMapBuffer3);//Ñâîéñòâà Bands
SetIndexLabel(2,"Bands ("+Bands_Per+")");
SetIndexStyle(3,DRAW_LINE,2,1);
SetIndexBuffer(3,ExtMapBuffer4);//Ñâîéñòâà Bands
SetIndexLabel(3,"Bands ("+Bands_Per+")");
SetIndexStyle(4,DRAW_LINE,2,1);
SetIndexBuffer(4,ExtMapBuffer5);//Ñâîéñòâà Bands
SetIndexLabel(4,"Bands ("+Bands_Per+")");
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
//----
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
int counted_bars=IndicatorCounted();
int limit,cnt;
int cnt_rsi,cnt_bb,cnt_ma;
if (counted_bars==0)
{
limit=Bars-RSI_Per-1;
for(cnt=limit;cnt>=0;cnt--)
{
ExtMapBuffer1[cnt]=iRSI(NULL,0,RSI_Per,PRICE_CLOSE,cnt);
}
for(cnt=1;cnt<=Bars;cnt++)
{
ExtMapBuffer6[cnt]= iMA(NULL,0,MA_Per,0,SmoothType,PRICE_CLOSE,cnt);
}
for(cnt=limit-MA_Per;cnt>=0;cnt--)
{
ExtMapBuffer2[cnt]=iMAOnArray(ExtMapBuffer1,0,MA_Per,0,SmoothType,cnt);
}
for(cnt=limit-Bands_Per;cnt>=0;cnt--)
{
ExtMapBuffer3[cnt]=iBandsOnArray(ExtMapBuffer1,0,Bands_Per,2,0,MODE_LOWER,cnt);
}
for(cnt=limit-Bands_Per;cnt>=0;cnt--)
{
ExtMapBuffer4[cnt]=iBandsOnArray(ExtMapBuffer1,0,Bands_Per,2,0,MODE_UPPER,cnt);
}
for(cnt=limit-Bands_Per;cnt>=0;cnt--)
{
ExtMapBuffer5[cnt]=iBandsOnArray(ExtMapBuffer1,0,Bands_Per,2,0,MODE_MAIN,cnt);
}
}
cnt_rsi=limit;
cnt_bb=limit-Bands_Per;
cnt_ma=limit-MA_Per;
Comment(
"RSI (",RSI_Per,")=",ExtMapBuffer1[1],"\n",
"Bolinger (",Bands_Per,")=",ExtMapBuffer5[1],"\n",
"MA (",MA_Per,")=",ExtMapBuffer2[1],"\n"
//,"MA CNT (",MA_Per,")=",ExtMapBuffer6[8],"\n"
//,"CNT_MA (",cnt_ma,")"
);
//----
//ObjectCreate("Arrow", OBJ_ARROW, 0, 0, 5);
//ObjectSet("Arrow",OBJPROP_ARROWCODE,OBJ_PERIOD_M15 | OBJ_PERIOD_H1);
//ObjectSetText("PivotText", "Pivot Point (DJ)", fontsize, "Arial",
//colorPivot);
//----
return(0);
}
//+------------------------------------------------------------------+
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