CCM2_v2

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CCM2_v2

This script is designed as a technical analysis tool for the MetaTrader platform, specifically created to interpret price action by analyzing the "anatomy" of candlesticks. Instead of just looking at whether a price went up or down, it evaluates the internal structure and relative proportions of market movement to determine underlying momentum.

Core Operational Logic

1. Market Structure Decomposition The tool begins by breaking down every price bar into three distinct components:

  • Body Range: The distance between the opening and closing prices.
  • Upper Wick/Shadow: The distance between the high of the bar and the top of the body.
  • Lower Wick/Shadow: The distance between the low of the bar and the bottom of the body.

By isolating these parts, the script can distinguish between "strong" moves (large bodies, small wicks) and "exhaustion" moves (small bodies, long wicks).

2. Statistical Volatility Mapping (Bollinger-style Boundaries) The script calculates a moving average for each of the three components mentioned above (Body, Upper Wick, Lower Wick). It then applies a standard deviation calculation to these averages. This creates dynamic "boundaries" or zones. By comparing current price action against these statistical boundaries, the tool can identify whether a specific candle's shape is "normal" compared to recent history or if it represents an extreme outlier.

3. Multi-Dimensional Candle Coding The engine assigns a unique numerical "score" to each candle based on a series of logical tests:

  • It checks the direction of the candle (Bullish vs. Bearish).
  • It measures the size of the current body against the statistical boundaries established in the previous step.
  • It evaluates the length of the wicks relative to those same boundaries.
  • It looks back at a small window of preceding candles to understand the immediate context of the move.

4. Signal Processing and Weighting Once every candle has been converted into a numerical code based on its shape, the script performs a sophisticated mathematical smoothing process:

  • Smoothing: It averages these codes over a specific timeframe to remove "noise" from erratic price jumps.
  • Weighted Synthesis: It uses a complex weighted formula (resembling a specialized regression or signal processing model) to aggregate the data points. This takes 39 distinct data points and combines them into a single, unified signal line.

Visual Output

The final result is displayed in a separate window on your chart:

  • The Signal Line: A smooth line representing the processed sentiment of the market.
  • Up/Down Histograms: These provide visual confirmation of the "code" generated by the script, helping the user identify when the current price action is trending aggressively upward or downward based on the structural analysis described above.
Miscellaneous
Implements a curve of type %1
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CCM2_v2 
//+------------------------------------------------------------------+
//| CCM2.mq4                                                         |
//| Ramdass - Conversion only                                        |
//+------------------------------------------------------------------+
#property  copyright "Author := Keny"
#property indicator_separate_window
#property indicator_buffers 3
#property indicator_color1 SteelBlue
#property indicator_color2 Green
#property indicator_color3 Red
//---- input parameters
extern int n=10;
extern int len=9;
extern double StdUp=0.5;
extern double StdDown=-0.5;
extern int CountBars=200;
//---- buffers
double SigL[];
double Up[];
double Dw[];

//+------------------------------------------------------------------+
//| Custom indicator initialization function                         |
//+------------------------------------------------------------------+
int init()
  {
   string short_name;
//---- indicator line
   IndicatorBuffers(3);
   SetIndexBuffer(0,SigL);
   SetIndexBuffer(1,Up);
   SetIndexBuffer(2,Dw);
   SetIndexStyle(0,DRAW_LINE,0,1);
   SetIndexStyle(1,DRAW_HISTOGRAM,0,2);
   SetIndexStyle(2,DRAW_HISTOGRAM,0,2);
//----
   return(0);
  }
//+------------------------------------------------------------------+
//| CCM + Digi                                                       |
//+------------------------------------------------------------------+
int start()
  {
   if (CountBars>=Bars) CountBars=Bars;
   SetIndexDrawBegin(0,Bars-CountBars+39);
   SetIndexDrawBegin(1,Bars-CountBars+39);
   SetIndexDrawBegin(2,Bars-CountBars+39);
   int shift,i,i2,cnt,len1,k;
   int counted_bars=IndicatorCounted();
   double value1,value3,M1,M2,M3,Hi1,Lo1,price,code;
   double b1,b2,u1,u2,l1,l2,V0,V1,V2,V3;
   double xOC,xHMOC,xMOCL,EMA0,EMAcode,cci;
   double code1[61],OC[61],HMOC[61],MOCL[61],MAxOC[61],MAxHMOC[61],MAxMOCL[61];
//----
   if(Bars<=60) return(0);
   len1=len;
   if (len1>60) len1=60;
//---- initial zero
   if(counted_bars<60)
     {
      for(i=1;i<=0;i++) SigL[CountBars-i]=0.0;
      for(i=1;i<=0;i++) Up[CountBars-i]=0.0;
      for(i=1;i<=0;i++) Dw[CountBars-i]=0.0;
     }
//----
   shift=CountBars-1;
   while(shift>=0)
     {
      for(i=len1-1; i>=1; i--)
        { //ïåðåïèñûâàåì ìàññèâû - äëÿ áîëëèíäæåðà
         OC[i]=OC[i-1];
         HMOC[i]=HMOC[i-1];
         MOCL[i]=MOCL[i-1];
         MAxOC[i]=MAxOC[i-1];
         MAxHMOC[i]=MAxHMOC[i-1];
         MAxMOCL[i]=MAxMOCL[i-1];
        }
      for(i=38; i>=1; i--)
        {
         code1[i]=code1[i-1];
        }
      EMA0=EMAcode;
      OC[0]=MathAbs(Open[shift]-Close[shift]);
      HMOC[0]=High[0]-MathMax(Open[shift],Close[shift]);
      MOCL[0]=MathMin(Open[shift],Close[shift])-Low[shift];
      MAxOC[0]=(MAxOC[1]-OC[len1-1])+OC[0];
      MAxHMOC[0]=MAxHMOC[1]-HMOC[len-1]+HMOC[0];
      MAxMOCL[0]=MAxMOCL[1]-MOCL[len1-1]+MOCL[0];
      xOC=MAxOC[0]/len1;
      xHMOC=MAxHMOC[0]/len1;
      xMOCL=MAxMOCL[0]/len1;
      V1=0;
      V2=0;
      V3=0;
      for(i=0; i<=len1-1; i++)
        {
         V0=OC[i]-xOC;
         V0=V0*V0;
         V1=V1+V0;
         V0=HMOC[i]-xHMOC;
         V0=V0*V0;
         V2=V2+V0;
         V0=MOCL[i]-xMOCL;
         V0=V0*V0;
         V3=V3+V0;
        }
      V1=V1/len1;
      V1=MathSqrt(V1);
      V2=V2/len1;
      V2=MathSqrt(V2);
      V3=V3/len1;
      V3=MathSqrt(V3);
      b1=xOC+StdDown*V1; //b1,b2-BB äëÿ òåë
      b2=xOC+StdUp*V1;
      u1=xHMOC+StdDown*V2;//u1,u2-BB äëÿ âåðõíåé òåíè
      u2=xHMOC+StdUp*V2;
      l1=xMOCL+StdDown*V3;//l1,l2-BB äëÿ íèæíåé òåíè
      l2=xMOCL+StdUp*V3;
      code1[0]=0.0;
      for(i=0; i<=n-1; i++) //êîäèðóåì ñâå÷ó
        {
         Hi1=High[shift]; Lo1=Low[shift];
         for(k=shift; k<=shift+n-1; k++)
           {
            price=High[k];
            if(Hi1<=price) Hi1=price;
            price=Low[k];
            if(Lo1>price)  Lo1=price;
           }
         code=0;
         if (Open[shift+i]<Close[shift]) code=64;
         if (Close[shift]==Open[shift+i])
           {
            if(Hi1-MathMax(Close[shift],Open[shift+i])>=MathMin(Close[shift],Open[shift+i])-Lo1)code=64;
           }
         if (code>=64)
           {
            //if (Open[shift+i]==Close[shift]) code=code;
            if((MathAbs(Open[shift+i]-Close[shift+i])<b1) && (MathAbs(Open[shift+i]-Close[shift])>0))code=code+16;
            if((MathAbs(Open[shift+i]-Close[shift])>=b1) && ((MathAbs(Open[shift+i]-Close[shift])<b2)))code=code+32;
            if (MathAbs(Open[shift+i]-Close[shift])>=b2) code=code+48;
           }
         if (code<64)
           {
            if (Open[shift+i]==Close[shift]) code=code+48;
            if((MathAbs(Open[shift+i]-Close[shift])<b1) && (MathAbs(Open[shift+i]-Close[shift])>0))code=code+32;
            if((MathAbs(Open[shift+i]-Close[shift])>=b1) && ((MathAbs(Open[shift+i]-Close[shift+i])<b2)))code=code+16;
            //if (MathAbs(Open[shift+i]-Close[shift])>=b2) code=code;
           }
         if(((Hi1-MathMax(Open[shift+i],Close[shift]))<u1) && ((Hi1-MathMax(Open[shift+i],Close[shift]))>0))code=code+4;
         if(((Hi1-MathMax(Open[shift+i],Close[shift]))>=u1) && ((Hi1-MathMax(Open[shift+i],Close[shift]))<u2))code=code+8;
         if(((Hi1-MathMax(Open[shift+i],Close[shift]))>=u2))code=code+12;
         M3=MathMin(Open[shift+i],Close[shift])-Lo1;
         if (M3==0) code=code+3;
         if (M3<l1 && M3>0) code=code+2;
         if (M3>=l1 && M3<l2) code=code+2;
         code1[0]=code1[0]+code-63;
        }
      code1[0]=code1[0]/n;
      code1[0]=code1[1]+2*(code1[0]-code1[1])/(n+1);
      cnt=cnt+1;
      if (cnt>38) //ñãëàæèâàåì ñ ïîìîùüþ FATL îò Finvare
        {
         SigL[shift]=
         0.4360409450*code1[0]
         +0.3658689069*code1[1]
         +0.2460452079*code1[2]
         +0.1104506886*code1[3]
         -0.0054034585*code1[4]
         -0.0760367731*code1[5]
         -0.0933058722*code1[6]
         -0.0670110374*code1[7]
         -0.0190795053*code1[8]
         +0.0259609206*code1[9]
         +0.0502044896*code1[10]
         +0.0477818607*code1[11]
         +0.0249252327*code1[12]
         -0.0047706151*code1[13]
         -0.0272432537*code1[14]
         -0.0338917071*code1[15]
         -0.0244141482*code1[16]
         -0.0055774838*code1[17]
         +0.0128149838*code1[18]
         +0.0226522218*code1[19]
         +0.0208778257*code1[20]
         +0.0100299086*code1[21]
         -0.0036771622*code1[22]
         -0.0136744850*code1[23]
         -0.0160483392*code1[24]
         -0.0108597376*code1[25]
         -0.0016060704*code1[26]
         +0.0069480557*code1[27]
         +0.0110573605*code1[28]
         +0.0095711419*code1[29]
         +0.0040444064*code1[30]
         -0.0023824623*code1[31]
         -0.0067093714*code1[32]
         -0.0072003400*code1[33]
         -0.0047717710*code1[34]
         +0.0005541115*code1[35]
         +0.0007860160*code1[36]
         +0.0130129076*code1[37]
         +0.0040364019*code1[38];
        }
      Up[shift]=0.0; Dw[shift]=0.0;
      if (code1[0]>=code1[1]) {Up[shift]=code1[0];} else {Dw[shift]=code1[0];}
      shift--;
     }
   return(0);
  }
//+------------------------------------------------------------------+

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