BullsBearsEyes_v1

Here's a detailed explanation of the logic within the provided MetaTrader MQL4 script, presented in Markdown format. This explanation focuses on what the script does, not how to improve it.

Overview

The script, named "BullsBearsEyes," is a custom indicator designed to generate a series of values (likely intended for visual representation on a chart) based on a complex calculation involving bullish and bearish power calculations. It appears to be attempting to quantify the relative strength of bullish and bearish momentum over a defined period. The indicator is designed to be displayed in a separate window.

Input Parameters

The script utilizes several external input parameters that allow the user to customize its behavior:

• periods: This parameter defines the period used in the iBullsPower and iBearsPower functions. It likely controls the length of the moving average or other calculation used to determine bullish and bearish power.
• timeperiods: This parameter is passed to iBullsPower and iBearsPower. Its purpose isn't immediately clear from the code snippet alone, but it likely influences the time frame considered for the bullish and bearish power calculations.
• gamma: This parameter acts as a smoothing factor. It determines the weight given to the previous value (L0A, L1A, etc.) in the calculation of the current value (L0, L1, etc.). A lower gamma value results in more smoothing.
• CountBars: This parameter limits the number of bars the indicator will process. It prevents the indicator from calculating values for the entire chart history, which could be computationally expensive. It's capped to the number of available bars.

Variables

The script declares several variables, which can be categorized as follows:

• L0, L1, L2, L3: These variables represent intermediate values in a recursive calculation. They appear to be part of a smoothed representation of bullish and bearish power.
• L0A, L1A, L2A, L3A: These variables store the previous values of L0, L1, L2, and L3, respectively. They are used in the smoothing calculation.
• LRSI: This variable is intended to represent a "relative strength index" (RSI)-like value, calculated from the CU and CD variables.
• CU: This variable accumulates the difference between bullish and bearish power when the bullish power is greater.
• CD: This variable accumulates the difference between bullish and bearish power when the bearish power is greater.
• val1[]: This is an array that stores the calculated LRSI values. This array is used by the indicator to draw the values on the chart.

Functions

The script defines three primary functions: init(), deinit(), and start().

• init(): This function is called once when the indicator is initialized. It sets up the index buffer (val1) for drawing the calculated values on the chart.
• deinit(): This function is called once when the indicator is removed from the chart. It's currently empty, indicating that no cleanup is performed during deinitialization.
• start(): This is the core function of the indicator. It performs the calculations and generates the LRSI values.

Logic within start()

1. Bar Limit: The code first limits the number of bars processed to CountBars.

2. Looping Through Bars: The code then loops backward through the chart bars, starting from CountBars - 1 down to 0.

3. Recursive Calculation: Inside the loop, the L0, L1, L2, and L3 values are calculated recursively. Each value is a weighted average of the previous value (L0A, L1A, etc.) and the result of the iBullsPower and iBearsPower functions. The gamma parameter controls the weighting.

4. Calculating CU and CD: The CU and CD variables are calculated. CU accumulates the difference when bullish power exceeds bearish power, and CD accumulates the difference when bearish power exceeds bullish power.

5. Calculating LRSI: The LRSI value is calculated as the ratio of CU to the sum of CU and CD. This is analogous to the calculation of a standard RSI.

6. Storing LRSI: The calculated LRSI value is stored in the val1[] array at the current bar index.

iBullsPower and iBearsPower

The script relies on two built-in functions, iBullsPower and iBearsPower. These functions are not defined within the script itself. They are assumed to be provided by the MetaTrader platform and are used to calculate bullish and bearish power for a given bar. The exact implementation of these functions is not visible in the provided code.

Overall Purpose

The indicator appears to be designed to provide a smoothed representation of the relative strength of bullish and bearish momentum, using a recursive calculation and a ratio-based metric (LRSI) similar to an RSI. The iBullsPower and iBearsPower functions are crucial for determining the underlying bullish and bearish power values. The indicator's usefulness depends heavily on the specific implementations of those built-in functions.