HiLoBands
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This script is designed as a visual tool for the MetaTrader platform that helps traders identify specific price boundaries on a chart. Its primary goal is to track historical price extremes—specifically the highest highs and lowest lows—over a moving period of time.
Core Logic Overview
The script functions by scanning back through historical price data to establish two distinct "boundary lines." Instead of showing every single price fluctuation, it filters the noise to highlight the most significant peaks and valleys within a predefined window.
1. Moving Window Analysis The logic uses a specific "look-back" period (defined by the band length). As the indicator moves along the chart from left to right, it constantly looks at a set number of previous candles to find the highest point reached and the lowest point dropped.
2. Dynamic Tracking Because it is a "moving" calculation, these boundaries are not static. As new price data appears on the chart, the script automatically updates the highs and lows. If a new peak is reached that is higher than anything in the current window, the high boundary shifts upward; similarly, if a new low is reached, the low boundary shifts downward.
3. Visual Output The script translates these calculations into two visible lines on your trading chart:
- Highline: Represents the upper ceiling of the price action within the specified period.
- Lowline: Represents the lower floor of the price action within the specified period.
Summary for the User
Essentially, this tool simplifies the complexity of raw price movement into a clearer "trading range." By identifying where the price has peaked and bottomed out over a specific duration, it allows you to see the current volatility boundaries more clearly, helping you visualize the corridor in which the market is currently operating.
//+------------------------------------------------------------------+
//|
//|
//+------------------------------------------------------------------+
#property copyright "PowerLawMBK Matt Kennel TRADE SECRET"
#property link ""
#property indicator_chart_window
#property indicator_buffers 2
#property indicator_color1 White
#property indicator_color2 Aqua
#property indicator_color3 Aqua
#property indicator_color4 Orange
#property indicator_color5 Orange
//---- input parameters
//
//
// Modified by MBK
// try on M30 chart with these parameters. Smaller and larger time frames
// appear to have too much chop
//
extern int CountBars=4000;
extern int bandlen=9;
int counter=0;
//---- buffers
double highline[],lowline[];
double highline2[],lowline2[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
string short_name;
//---- indicator line
IndicatorBuffers(4);
SetIndexStyle(0,DRAW_LINE);
SetIndexStyle(1,DRAW_LINE);
SetIndexBuffer(0,highline);
SetIndexBuffer(1,lowline);
/*
SetIndexStyle(2,DRAW_LINE);
SetIndexStyle(3,DRAW_LINE);
SetIndexBuffer(2,highline2);
SetIndexBuffer(3,lowline2);
*/
//----
return(0);
}
//+------------------------------------------------------------------+
//| SilverTrend_PowerLaw |
//+------------------------------------------------------------------+
int start()
{
CountBars = MathMin(Bars-bandlen-1,CountBars);
int i,shift,counted_bars=IndicatorCounted();
int i1,i2;
int limit;
//----
//----
if (counted_bars<0) return(-1);
if (counted_bars>0) counted_bars--;
limit = CountBars; // -counted_bars;
if (limit < 1) limit = 1;
ArrayResize(highline,limit);
ArrayResize(lowline,limit);
for (shift = limit; shift>=0; shift--)
{
double center, highweighted, lowweighted,range;
// collect running highs and lows back in time.
// high[k] means the highest high in the previous 'k' timesteps,
// starting at shift. Therefore high[k] must be monotonically increasing
// as low[k] is monotonically decreasing.
//
int offset = 1;
// for offset = 1 start computing using previous bar's data only, this may be
// needed for causality if using a trading system
double H1,L1;
double H2,L2;
H1 = High[Highest(Symbol(),0,MODE_HIGH,bandlen,shift+offset)];
L1 = Low[Lowest(Symbol(),0,MODE_LOW,bandlen,shift+offset)];
highline[shift] = H1;
lowline[shift] = L1;
// now do it manually
/* H2 = High[shift+offset];
L2 = Low[shift+offset];
for (int k=1; k < bandlen; k++) {
double HV = High[shift+k+offset];
if (HV > H2) H2 = HV;
//L2 = MathMin(L2,iLow(Symbol(),0,shift+k+offset));
double LV = Low[shift+k+offset];
if (LV < L2) L2 = LV;
}
highline2[shift] = H2;
lowline2[shift] = L2;
*/
}
//for (shift = limit; shift >= 0; shift--) {
// if (shift < CountBars-SmoothingLength-1) {
// smoothed[shift] = iMAOnArray(centerline,0,SmoothingLength,ma_shift,MODE_SMA,shift);
// smoothedhigh[shift] = smoothed[shift] + range/2*WidthPCT/100;
// smoothedlow[shift] = smoothed[shift]- range/2*WidthPCT/100;
//
// } else
// smoothed[shift] = 0.0;
//
// }
return(0);
}
//+------------------------------------------------------------------+
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