Fruity Pebbles 1.1
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This tool is designed to identify specific entry points for trading by analyzing the relationship between price momentum and long-term trends. It essentially acts as a visual filter that monitors how fast price is moving relative to its average, helping to spot potential "turning points" in the market.
How the Logic Works
The script operates by constantly scanning historical and real-time data, looking for three specific conditions to align before providing a signal:
1. Trend Identification (The Foundation) The tool uses an Exponential Moving Average (EMA) to determine the general direction of the market. It compares the current price trend against a slightly older position in time to establish whether the overall momentum is moving upward or downward.
2. Momentum Analysis (The Engine) The script relies heavily on a specialized technical indicator (MACD). It looks at the "Difference" between two various lines:
- It measures the current gap between these lines.
- It compares that gap to where it was in the previous moment.
- By doing this, it can detect whether momentum is accelerating or slowing down.
3. Signal Generation (The Trigger) The tool doesn't just look for price movement; it waits for a specific "state change." It tracks a toggle system that determines if a new trend has been initiated. A signal is only produced when:
- The momentum gap changes direction (e.g., moving from negative to positive).
- The momentum gap shows a specific relative strength compared to the previous bar.
- The price movement aligns with the established EMA trend.
Visual Output
When these complex conditions are met, the script places visual markers on your chart:
- Buy Signals: When the momentum is rising but shows signs of stabilizing within an upward trend, the tool marks a position below the price (representing a potential entry).
- Sell Signals: When the momentum is falling but stabilizes within a downward trend, the tool marks a position above the price.
In summary, this script filters out "market noise" by ensuring that a trade signal only appears when the short-term momentum confirms the long-term trend, providing a more structured approach to identifying potential buy and sell opportunities.
//+------------------------------------------------------------------+
//| Custom Moving Average.mq4 |
//+------------------------------------------------------------------+
#property indicator_chart_window
#property indicator_buffers 3
#property indicator_color1 Yellow
#property indicator_color2 Red
#property indicator_color3 Black
//---- indicator parameters
extern double TakeProfit = 1000;
extern double MACDCharttime = 0;
extern double MATrendPeriod= 26;
extern double ShiftFromBar = 0.01;
extern int FastLength = 12;
extern int SlowLength = 26;
extern int MACDLength = 9;
//---- indicator buffers
double ExtMapBuffer1[];
double ExtMapBuffer2[];
double ExtSwitchBuffer2[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
IndicatorBuffers(3);
//---- drawing settings
SetIndexStyle(0,DRAW_ARROW,STYLE_DOT);
SetIndexStyle(1,DRAW_ARROW,STYLE_DOT);
//---- indicator buffers mapping
SetIndexBuffer(0,ExtMapBuffer1);
SetIndexBuffer(1,ExtMapBuffer2);
SetIndexBuffer(2,ExtSwitchBuffer2);
SetIndexEmptyValue(0,0.0);
ArraySetAsSeries(ExtMapBuffer1,true);
ArraySetAsSeries(ExtMapBuffer2,true);
//ArraySetAsSeries(ExtSwitchBuffer2,true);
//SetIndexShift(0, 20);
//SetIndexShift(1, 20);
//---- indicator short name
IndicatorShortName("FRUITWORKS");
//---- initialization done
return(0);
}
//+------------------------------------------------------------------+
//| |
//+------------------------------------------------------------------+
int start()
{
int shift, back, lasthighpos, lastlowpos;
double val,res;
double curlow, curhigh,lasthigh,lastlow;
double MacdCurrent, MacdPrevious;
double SignalCurrent, SignalPrevious;
double MaCurrent, MaPrevious;
double MacdDiffy, MacDuff;
int cnt, ticket, total;
int limit;
//if(Bars<900)
// {
// Print("bars less than 900");
// return(0);
// }
SetIndexEmptyValue(0,0.0);
RefreshRates( ) ;
for(shift=(Bars-100); shift>=0; shift--)
{
ExtMapBuffer1[shift] = 0;
ExtMapBuffer2[shift] = 0;
MaCurrent =iMA(NULL,MACDCharttime,MATrendPeriod,0,MODE_EMA,PRICE_CLOSE,(shift+0));
MaPrevious=iMA(NULL,MACDCharttime,MATrendPeriod,0,MODE_EMA,PRICE_CLOSE,(shift+4));
MacdCurrent = iMACD(NULL,MACDCharttime,FastLength,SlowLength,MACDLength,PRICE_CLOSE,MODE_MAIN,(shift+0));
MacdPrevious = iMACD(NULL,MACDCharttime,FastLength,SlowLength,MACDLength,PRICE_CLOSE,MODE_MAIN,(shift+1));
SignalCurrent = iMACD(NULL,MACDCharttime,FastLength,SlowLength,MACDLength,PRICE_CLOSE,MODE_SIGNAL,(shift+0));
SignalPrevious = iMACD(NULL,MACDCharttime,FastLength,SlowLength,MACDLength,PRICE_CLOSE,MODE_SIGNAL,(shift+1));
MacdDiffy = (MacdCurrent - SignalCurrent);
MacDuff = (MacdPrevious - SignalPrevious);
ExtSwitchBuffer2[shift] = 0;
//if (shift < Bars)
//{
//ExtSwitchBuffer2[shift] = ExtSwitchBuffer2[shift+1];
//}
if ( ((MacDuff<=0) && (MacdDiffy>=0)) || (ExtSwitchBuffer2[shift+1]==1))
{
ExtSwitchBuffer2[shift] = 1;
}
if (MacdDiffy < -0.00015 && MacdDiffy > MacDuff && MaCurrent >= MaPrevious && ExtSwitchBuffer2[shift] == 1)
{
ExtSwitchBuffer2[shift] = 0;
ExtMapBuffer1[shift] = Open[shift] + ShiftFromBar;
if (shift == 0)
{
ExtMapBuffer1[shift] = Ask + ShiftFromBar;
}
//Comment("SELL : Macd Diff : ",MacdDiffy,":",ExtMapBuffer2[shift]," from current : ",shift);
}
if (MacdDiffy > 0.00015 && MacdDiffy < MacDuff && MaCurrent <= MaPrevious && ExtSwitchBuffer2[shift] == 1)
{
ExtSwitchBuffer2[shift] = 0;
ExtMapBuffer2[shift] = Open[shift] - ShiftFromBar;
if (shift == 0)
{
ExtMapBuffer2[shift] = Bid + ShiftFromBar;
}
//Comment("BUY : Macd Diff : ",MacdDiffy,":",ExtMapBuffer2[shift]," from current : ",shift);
}
//--ExtMapBuffer2[shift]=MacdDiffy;
}
}
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