This script functions as a specialized technical analysis indicator designed to track and visualize market trends by analyzing price movements over a specific historical window. Instead of reacting purely to the most recent price change, it uses a sophisticated mathematical approach to smooth out "noise" and identify the underlying direction of the market.
Core Logic and Mechanics
1. Weighted Data Analysis The core engine of this script works by looking back at 65 individual price points (bars). Rather than treating every price point as equally important, it applies a specific mathematical weight to each one. By multiplying each historical price by a unique coefficient and summing them up, the script generates two distinct baseline values. This method ensures that the resulting data is more stable and less susceptible to sudden, insignificant price fluctuations.
2. Trend Calculation The indicator calculates the difference between these two primary weighted values to produce a "Result." To determine the actual trend, it compares this current Result against the previous signals recorded by the script. This comparison allows the tool to detect whether the momentum is moving upward, downward, or remaining neutral.
3. Dynamic Visual Output The logic then categorizes the movement into three distinct states, which are displayed on your chart:
- Upward Momentum: When the calculated trend shows a positive increase, the script assigns the value to the first buffer (typically represented as Lime).
- Downward Momentum: When the trend shows a negative decrease, it assigns the value to the second buffer (typically represented as Red).
- Neutral/Sideways Movement: If there is no significant change in the trend direction, the value is assigned to the third buffer (typically represented as Gray).
Customization Options
The script includes a user-friendly setting that allows you to choose how this data is presented visually:
- Point Style: Displays the trend data as distinct dots or arrows on the chart.
- Histogram Style: Displays the trend data as vertical bars, making it easier to visualize the magnitude of the momentum over time.
Summary for the User
Essentially, this tool acts as a "filter." It takes a large amount of historical price data, processes it through a complex weighted formula to strip away market volatility, and then tells you clearly—via different colors or shapes—whether the current market direction is leaning up, down, or staying flat.
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DM
//+------------------------------------------------------------------+
//| |
//| Copyright © 1999-2007, MetaQuotes Software Corp. |
//| http://www.metaquotes.ru |
//+------------------------------------------------------------------+
#property copyright "Copyright 2002, Finware.ru Ltd."
#property link "http://www.finware.ru/"
//----
#property indicator_separate_window
#property indicator_buffers 3
#property indicator_color1 Lime
#property indicator_color2 Red
#property indicator_color3 Gray
//---- input parameters
extern int Drow_style= 0; // Ñòèëü èñïîëíåíèÿ ãðàôèêà 0 - â âèäå òî÷å÷íîé ëèíèè, äðóãîå çíà÷åíèå - â âèäå ãèñòîãðàììû
//---- indicator buffers
double Ind_Buffer1[];
double Ind_Buffer2[];
double Ind_Buffer3[];
//---- double vars
double value1,value2,Rezalt,trend;
//+------------------------------------------------------------------+
//| |
//+------------------------------------------------------------------+
int init()
{
//---- indicators
if (Drow_style==0)
{
SetIndexStyle(0,DRAW_ARROW);
SetIndexStyle(1,DRAW_ARROW);
SetIndexStyle(2,DRAW_ARROW);
//----
SetIndexArrow(0,159);
SetIndexArrow(1,159);
SetIndexArrow(2,159);
}
else
{
SetIndexStyle(0,DRAW_HISTOGRAM);
SetIndexStyle(1,DRAW_HISTOGRAM);
SetIndexStyle(2,DRAW_HISTOGRAM);
}
//----
SetIndexEmptyValue(0,0.0);
SetIndexEmptyValue(1,0.0);
SetIndexEmptyValue(2,0.0);
//----
SetIndexBuffer(0,Ind_Buffer1);
SetIndexBuffer(1,Ind_Buffer2);
SetIndexBuffer(2,Ind_Buffer3);
//----
IndicatorShortName ("DM");
SetIndexLabel (0, "DM_Up");
SetIndexLabel (1, "DM_Down");
SetIndexLabel (2, "DM_Straight");
IndicatorDigits(MarketInfo(Symbol(),MODE_DIGITS));
return(0);
}
//+------------------------------------------------------------------+
//| |
//+------------------------------------------------------------------+
int start()
{
//---- get already counted bars
int shift,counted_bars=IndicatorCounted();
//---- check for possible errors
if (counted_bars<0) return(-1);
//----
if(counted_bars<64)for(shift=1;shift<=64;shift++)
{Ind_Buffer1[shift]=0.0;Ind_Buffer2[shift]=0.0;Ind_Buffer3[shift]=0.0;}
//----
shift=Bars-64-1;
if(counted_bars>64) shift=Bars-counted_bars-1;
while(shift>=0)
{
value1=
-0.057943686277445900*Open[shift+00]
-0.043658266634319700*Open[shift+01]
+0.016893339337967300*Open[shift+02]
+0.110448213843891000*Open[shift+03]
+0.205220247113110000*Open[shift+04]
+0.264664029548369000*Open[shift+05]
+0.264664029548369000*Open[shift+06]
+0.205220247113110000*Open[shift+07]
+0.110448213843891000*Open[shift+08]
+0.016893339337967300*Open[shift+09]
-0.043658266634319700*Open[shift+10]
-0.057943686277445900*Open[shift+11]
-0.034834636631794200*Open[shift+12]
+0.002212354734218340*Open[shift+13]
+0.028933121721909400*Open[shift+14]
+0.032424401776343200*Open[shift+15]
+0.015569833996195800*Open[shift+16]
-0.007660554868813180*Open[shift+17]
-0.022138347829420900*Open[shift+18]
-0.020552990368271800*Open[shift+19]
-0.006433347602730440*Open[shift+20]
+0.009627481503821010*Open[shift+21]
+0.017394469333231100*Open[shift+22]
+0.013176086997509700*Open[shift+23]
+0.001209424586624090*Open[shift+24]
-0.010002709133594700*Open[shift+25]
-0.013505578777899800*Open[shift+26]
-0.008035831519405070*Open[shift+27]
+0.001903891095510710*Open[shift+28]
+0.009480467257466930*Open[shift+29]
+0.010166090979082400*Open[shift+30]
+0.004303104789688430*Open[shift+31]
-0.003659787203963280*Open[shift+32]
-0.008411956859246820*Open[shift+33]
-0.007282846005800100*Open[shift+34]
-0.001620704470705190*Open[shift+35]
+0.004466014467332310*Open[shift+36]
+0.007048985722291220*Open[shift+37]
+0.004847799927165300*Open[shift+38]
-0.000217319809293247*Open[shift+39]
-0.004603538852047050*Open[shift+40]
-0.005574817063020290*Open[shift+41]
-0.002877047191674200*Open[shift+42]
+0.001371504969476030*Open[shift+43]
+0.004280506570424680*Open[shift+44]
+0.004136269885199370*Open[shift+45]
+0.001361513374633290*Open[shift+46]
-0.001973820228459360*Open[shift+47]
-0.003675699277522370*Open[shift+48]
-0.002836788589562860*Open[shift+49]
-0.000284631689719810*Open[shift+50]
+0.002153387731732640*Open[shift+51]
+0.002934855205103340*Open[shift+52]
+0.001758962821343280*Open[shift+53]
-0.000389897847025107*Open[shift+54]
-0.002031006983868290*Open[shift+55]
-0.002197277408694140*Open[shift+56]
-0.000975033303736501*Open[shift+57]
+0.000693883112457725*Open[shift+58]
+0.001751056105124850*Open[shift+59]
+0.001683817123497210*Open[shift+60]
+0.000645916394658871*Open[shift+61]
-0.001229513645906610*Open[shift+62]
-0.005497165615453070*Open[shift+63]
+0.001719892732445040*Open[shift+64];
value2=
0.210642090317950000*Open[shift+00]
+0.271656355551084000*Open[shift+01]
+0.271656355551084000*Open[shift+02]
+0.210642090317950000*Open[shift+03]
+0.113366214899538000*Open[shift+04]
+0.017339655129830400*Open[shift+05]
-0.044811701929405100*Open[shift+06]
-0.059474537088348700*Open[shift+07]
-0.035754954878029800*Open[shift+08]
+0.002270804329963180*Open[shift+09]
+0.029697524121816400*Open[shift+10]
+0.033281042507046500*Open[shift+11]
+0.015981183265287400*Open[shift+12]
-0.007862943901791450*Open[shift+13]
-0.022723234810281000*Open[shift+14]
-0.021095992789986800*Open[shift+15]
-0.006603314272564040*Open[shift+16]
+0.009881836012723110*Open[shift+17]
+0.017854024794657900*Open[shift+18]
+0.013524194354160800*Open[shift+19]
+0.001241377137939080*Open[shift+20]
-0.010266977018020800*Open[shift+21]
-0.013862391185810200*Open[shift+22]
-0.008248135223019260*Open[shift+23]
+0.001954191195740410*Open[shift+24]
+0.009730937704226890*Open[shift+25]
+0.010434675351580300*Open[shift+26]
+0.004416791230436310*Open[shift+27]
-0.003756477431473020*Open[shift+28]
-0.008634197655553740*Open[shift+29]
-0.007475256109987750*Open[shift+30]
-0.001663522884800100*Open[shift+31]
+0.004584004921651760*Open[shift+32]
+0.007235217324080300*Open[shift+33]
+0.004975877012459140*Open[shift+34]
-0.000223061318466289*Open[shift+35]
-0.004725162649865770*Open[shift+36]
-0.005722101672782540*Open[shift+37]
-0.002953057716881230*Open[shift+38]
+0.001407739624700190*Open[shift+39]
+0.004393595974558090*Open[shift+40]
+0.004245548609330800*Open[shift+41]
+0.001397484055608480*Open[shift+42]
-0.002025967830578520*Open[shift+43]
-0.003772809896144160*Open[shift+44]
-0.002911735497357070*Open[shift+45]
-0.000292151553936419*Open[shift+46]
+0.002210279441029960*Open[shift+47]
+0.003012392996694690*Open[shift+48]
+0.001805433970046320*Open[shift+49]
-0.000400198804275733*Open[shift+50]
-0.002084665438964100*Open[shift+51]
-0.002255328667062000*Open[shift+52]
-0.001000793323845250*Open[shift+53]
+0.000712215248254048*Open[shift+54]
+0.001797318361302890*Open[shift+55]
+0.001728302950591050*Open[shift+56]
+0.000662981267470111*Open[shift+57]
-0.001261996942755200*Open[shift+58]
-0.005642398702623070*Open[shift+59]
+0.001765331663815800*Open[shift+60];
//----
Rezalt=value2-value1;
//----
//---- +SSSSSSSSSSSSSSSS <<< Three colore code >>> SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS+
trend=Rezalt-Ind_Buffer1[shift+1]-Ind_Buffer2[shift+1]-Ind_Buffer3[shift+1];
if(trend>0.0) {Ind_Buffer1[shift]=Rezalt; Ind_Buffer2[shift]=0; Ind_Buffer3[shift]=0;}
else{if(trend<0.0){Ind_Buffer1[shift]=0; Ind_Buffer2[shift]=Rezalt; Ind_Buffer3[shift]=0;}
else {Ind_Buffer1[shift]=0; Ind_Buffer2[shift]=0; Ind_Buffer3[shift]=Rezalt;}}
//---- +SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS+
shift--;
}
return(0);
}
//+------------------------------------------------------------------+
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