This script is a versatile technical analysis tool designed for the MetaTrader platform. Its primary purpose is to calculate and visualize different types of Moving Averages (MA), which are used by traders to identify trends and smooth out price fluctuations in volatile markets.
Unlike standard moving averages that might appear as continuous lines, this specific script is configured to display its results as distinct visual markers (dots) on your chart.
Core Functionality
The tool allows you to switch between four distinct mathematical models for calculating averages. Depending on your preference, the script can process price data using one of the following logics:
- Simple Moving Average (SMA): This is the standard method where the script takes the average of a specific number of previous closing prices. Every data point in the timeframe is given equal importance.
- Exponential Moving Average (EMA): This method places a higher weight on more recent price data. It reacts more quickly to sudden price changes than a simple average, making it popular for identifying trend shifts early.
- Smoothed Moving Average (SMMA): This provides a "smoother" look by taking into account all previous data in the calculation. It is less sensitive to short-term spikes and is ideal for traders who prefer to see the broader, long-term trend.
- Linear Weighted Moving Average (LWMA): This model applies a weighted multiplier to the price data. The most recent prices have the highest impact on the average, while older prices decrease in influence linearly.
How it Works
- Customization: When you load the tool, you can define the "Period"—which determines how many past candles/bars the script looks at to calculate the average.
- Dynamic Calculation: The script automatically scans your chart's price history. It identifies the closing price of each candle and applies the mathematical formula selected by the user (SMA, EMA, SMMA, or LWMA).
- Visual Output: Instead of just providing a raw number, the script translates these calculations into visual dots on the chart. The positioning of these dots helps you see exactly where the "average" price sits at any given moment relative to the current market movement.
In summary, this tool acts as a customizable trend-analysis assistant, offering four different ways to interpret historical price data and displaying them clearly on your trading screen to help with decision-making.
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ATM_MAdot
//+------------------------------------------------------------------+
//| Custom Moving Average.mq4 |
//| Copyright © 2004, MetaQuotes Software Corp. |
//| http://www.metaquotes.net/ |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2004, MetaQuotes Software Corp."
#property link "http://www.metaquotes.net/"
#property link "http://www.accrete.com/"
#property indicator_chart_window
#property indicator_buffers 1
#property indicator_color1 Lime
//---- indicator parameters
extern string ATM_MAdot_by_Accrete ="Dot set to bar close";
extern int MA_Period=1;
int MA_Shift=0;
int MA_Method=0;
//---- indicator buffers
double ExtMapBuffer[];
//----
int ExtCountedBars=0;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
int draw_begin;
string short_name;
//---- drawing settings
SetIndexStyle(0,DRAW_ARROW,0,1);
SetIndexArrow(0,160);
SetIndexShift(0,MA_Shift);
IndicatorDigits(MarketInfo(Symbol(),MODE_DIGITS));
if(MA_Period<2) MA_Period=1;
draw_begin=MA_Period-1;
//---- indicator short name
switch(MA_Method)
{
case 1 : short_name="EMA("; draw_begin=0; break;
case 2 : short_name="SMMA("; break;
case 3 : short_name="LWMA("; break;
default :
MA_Method=0;
short_name="SMA(";
}
IndicatorShortName(short_name+MA_Period+")");
SetIndexDrawBegin(0,draw_begin);
//---- indicator buffers mapping
SetIndexBuffer(0,ExtMapBuffer);
//---- initialization done
return(0);
}
//+------------------------------------------------------------------+
//| |
//+------------------------------------------------------------------+
int start()
{
if(Bars<=MA_Period) return(0);
ExtCountedBars=IndicatorCounted();
//---- check for possible errors
if (ExtCountedBars<0) return(-1);
//---- last counted bar will be recounted
if (ExtCountedBars>0) ExtCountedBars--;
//----
switch(MA_Method)
{
case 0 : sma(); break;
case 1 : ema(); break;
case 2 : smma(); break;
case 3 : lwma();
}
//---- done
return(0);
}
//+------------------------------------------------------------------+
//| Simple Moving Average |
//+------------------------------------------------------------------+
void sma()
{
double sum=0;
int i,pos=Bars-ExtCountedBars-1;
//---- initial accumulation
if(pos<MA_Period) pos=MA_Period;
for(i=1;i<MA_Period;i++,pos--)
sum+=Close[pos];
//---- main calculation loop
while(pos>=0)
{
sum+=Close[pos];
ExtMapBuffer[pos]=sum/MA_Period;
sum-=Close[pos+MA_Period-1];
pos--;
}
//---- zero initial bars
if(ExtCountedBars<1)
for(i=1;i<MA_Period;i++) ExtMapBuffer[Bars-i]=0;
}
//+------------------------------------------------------------------+
//| Exponential Moving Average |
//+------------------------------------------------------------------+
void ema()
{
double pr=2.0/(MA_Period+1);
int pos=Bars-2;
if(ExtCountedBars>2) pos=Bars-ExtCountedBars-1;
//---- main calculation loop
while(pos>=0)
{
if(pos==Bars-2) ExtMapBuffer[pos+1]=Close[pos+1];
ExtMapBuffer[pos]=Close[pos]*pr+ExtMapBuffer[pos+1]*(1-pr);
pos--;
}
}
//+------------------------------------------------------------------+
//| Smoothed Moving Average |
//+------------------------------------------------------------------+
void smma()
{
double sum=0;
int i,k,pos=Bars-ExtCountedBars+1;
//---- main calculation loop
pos=Bars-MA_Period;
if(pos>Bars-ExtCountedBars) pos=Bars-ExtCountedBars;
while(pos>=0)
{
if(pos==Bars-MA_Period)
{
//---- initial accumulation
for(i=0,k=pos;i<MA_Period;i++,k++)
{
sum+=Close[k];
//---- zero initial bars
ExtMapBuffer[k]=0;
}
}
else sum=ExtMapBuffer[pos+1]*(MA_Period-1)+Close[pos];
ExtMapBuffer[pos]=sum/MA_Period;
pos--;
}
}
//+------------------------------------------------------------------+
//| Linear Weighted Moving Average |
//+------------------------------------------------------------------+
void lwma()
{
double sum=0.0,lsum=0.0;
double price;
int i,weight=0,pos=Bars-ExtCountedBars-1;
//---- initial accumulation
if(pos<MA_Period) pos=MA_Period;
for(i=1;i<=MA_Period;i++,pos--)
{
price=Close[pos];
sum+=price*i;
lsum+=price;
weight+=i;
}
//---- main calculation loop
pos++;
i=pos+MA_Period;
while(pos>=0)
{
ExtMapBuffer[pos]=sum/weight;
if(pos==0) break;
pos--;
i--;
price=Close[pos];
sum=sum-lsum+price*MA_Period;
lsum-=Close[i];
lsum+=price;
}
//---- zero initial bars
if(ExtCountedBars<1)
for(i=1;i<MA_Period;i++) ExtMapBuffer[Bars-i]=0;
}
//+------------------------------------------------------------------+
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