The MACFibo indicator is designed to identify trend reversals and potential entry points on a trading chart by combining Moving Average crossovers with dynamic visual markers. By analyzing the relationship between different price averages, the tool helps traders visualize where the momentum is shifting and where significant price "swing" points have occurred.
Core Logic Overview
The script functions based on three primary technical pillars:
1. Moving Average Crossovers The indicator monitors two different moving averages simultaneously—a "Fast" average (which reacts quickly to recent price changes) and a "Slow" average (which represents the broader trend).
- Bullish Signal: When the Fast average crosses above the Slow average, it suggests that upward momentum is accelerating.
- Bearish Signal: When the Fast average drops below the Slow average, it suggests that downward pressure is taking over.
2. Trend Tracking and Memory Unlike simple indicators that only look at the current moment, this script maintains a "memory" of the current trend. It constantly tracks how many bars (candles) the price has stayed in an upward or downward state. This allows the tool to identify the true beginning of a trend rather than just reacting to minor fluctuations.
3. Dynamic Visual Mapping (The Fibo Logic) When a crossover occurs, the script automatically identifies key "anchor points" to draw on your chart:
- For Buy Signals: It looks back through the current downward trend to find the lowest price point reached. It then draws a visual line connecting that historical low to the current price where the crossover occurred.
- For Sell Signals: It looks back through the current upward trend to find the highest price point reached. It draws a visual line connecting that historical high to the current price.
How it appears on your chart
Instead of just providing an alert, the script provides a visual "map" of the move:
- Trend Lines: It creates distinct lines on the chart to highlight the distance between the "source" (the highest or lowest point of the previous move) and the "destination" (the current crossover point).
- Color Coding: These lines are color-coded (typically Blue for upward moves and Red for downward moves) to give you an immediate sense of market direction.
- Precision Mapping: By drawing these trend lines, the tool helps traders visualize the magnitude of a price swing, making it easier to identify when a move is exhausted or where a new trend might be establishing its foundation.
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MACFibo
//+------------------------------------------------------------------+
//| MACFibo.mq4 |
//| Dinesh Yadav |
//| dineshydv@gmail.com |
//+------------------------------------------------------------------+
#property copyright "Dinesh Yadav"
#property link "dineshydv@gmail.com"
// based on MAC-Fibo system
#property indicator_chart_window
extern string MA_Mode_Types="0=SMA; 1=EMA; 2=SMMA; 3=LWMA;";
extern int Fast_MA=5;
extern int Fast_Mode=1;
extern int Slow_MA=20;
extern int Slow_Mode=0;
extern color Long_Entry_Clr=Blue;
extern color Shrt_Entry_Clr=Red;
double CrossUP[], CrossDN[];
int bars_snc_dn_strtd=0,bars_snc_up_strtd=0;
double POINT_A, POINT_B;
string TRADE;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init() { return(0); }
//+------------------------------------------------------------------+
//| Custom indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit() { ObjectsDeleteAll(); return(0); }
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
int i, counter;
double MA5_now, MA20_now, MA5_prv, MA20_prv, MA5_aft, MA20_aft;
double Range, AvgRange;
int counted_bars=IndicatorCounted();
//---- check for possible errors
if(counted_bars<0) return(-1);
//---- last counted bar will be recounted
if(counted_bars>0) counted_bars--;
int limit=Bars-counted_bars;
double this_trnd_low=99999, this_trnd_high=0;
for(i=limit; i>=0; i--)
//for(i=100; i>=0; i--)
{
counter=i; Range=0; AvgRange=0;
for (counter=i ;counter<=i+9;counter++)
{ AvgRange=AvgRange+MathAbs(High[counter]-Low[counter]); }
Range=AvgRange/10;
MA5_now = iMA(NULL, 0, Fast_MA, 0, Fast_Mode, PRICE_CLOSE, i);
MA5_prv = iMA(NULL, 0, Fast_MA, 0, Fast_Mode, PRICE_CLOSE, i+1);
MA5_aft = iMA(NULL, 0, Fast_MA, 0, Fast_Mode, PRICE_CLOSE, i-1);
MA20_now = iMA(NULL, 0, Slow_MA, 0, Slow_Mode, PRICE_CLOSE, i);
MA20_prv = iMA(NULL, 0, Slow_MA, 0, Slow_Mode, PRICE_CLOSE, i+1);
MA20_aft = iMA(NULL, 0, Slow_MA, 0, Slow_Mode, PRICE_CLOSE, i-1);
// 5EMA cross above 20SMA UP
if((MA5_now > MA20_now) && (MA5_prv < MA20_prv) && (MA5_aft > MA20_aft))
{
TRADE="BUY";
//Print("MA Cross UP : bars_snc_dn_strtd ", bars_snc_dn_strtd);
int low_bar_shft=iLowest(NULL,0,MODE_LOW,bars_snc_dn_strtd,i);
//CrossUP[i] = Low[i] - Range*0.5; Trend="UP";
POINT_A=Close[i];
POINT_B=Low[low_bar_shft];
// Draw POINT_A, POINT_B and connecting line
//Print("POINT_A: ",POINT_A," POINT_B: ", POINT_B, " Drawing Line.");
DrawObjects("MACFIBO-A "+i, i+1, POINT_A, i-1, POINT_A, Long_Entry_Clr, 3 );
DrawObjects("MACFIBO-B "+i, low_bar_shft+1, POINT_B, low_bar_shft-1, POINT_B, Long_Entry_Clr, 3 );
DrawObjects("MACFIBO-Line "+i, low_bar_shft, POINT_B, i, POINT_A, Long_Entry_Clr, 3 );
}
// 5EMA cross below 20SMA DN
else if ((MA5_now < MA20_now) && (MA5_prv > MA20_prv) && (MA5_aft < MA20_aft))
{
TRADE="SELL";
//Print("MA Cross DN : bars_snc_up_strtd ", bars_snc_up_strtd);
int High_bar_shft=iHighest(NULL,0,MODE_HIGH,bars_snc_up_strtd,i);
//CrossDN[i] = Low[i] + Range*0.5; Trend="DN";
POINT_A=Close[i];
POINT_B=High[High_bar_shft];
// Draw POINT_A, POINT_B and connecting line
//Print("POINT_A: ",POINT_A," POINT_B: ", POINT_B, " Drawing Line.");
DrawObjects("MACFIBO-A "+i, i+1, POINT_A, i-1, POINT_A, Shrt_Entry_Clr, 3 );
DrawObjects("MACFIBO-B "+i, High_bar_shft+1, POINT_B, High_bar_shft-1, POINT_B, Shrt_Entry_Clr, 3 );
DrawObjects("MACFIBO-Line "+i, High_bar_shft, POINT_B, i, POINT_A, Shrt_Entry_Clr, 3 );
}
else { TRADE="NA"; }
if( MA5_now < MA20_now ) // Trend is DN
{ bars_snc_up_strtd=0; bars_snc_dn_strtd++; //Print("MA DN : bars_snc_dn_strtd ", bars_snc_dn_strtd);
}
else if( MA5_now > MA20_now ) // Trend is UP
{ bars_snc_up_strtd++; bars_snc_dn_strtd=0; //Print("MA UP : bars_snc_up_strtd ", bars_snc_up_strtd);
}
}
return(0);
}
void DrawObjects(string ObjName, int shft_bgn, double Price_Bgn, int shft_end, double Price_End, color clr, int wdth)
{
ObjectDelete(ObjName);
ObjectCreate(ObjName, OBJ_TREND, 0, Time[shft_bgn], Price_Bgn, Time[shft_end], Price_End );
ObjectSet(ObjName, OBJPROP_WIDTH, wdth);
ObjectSet(ObjName,OBJPROP_RAY,false);
ObjectSet(ObjName,OBJPROP_STYLE,STYLE_SOLID);
ObjectSet(ObjName,OBJPROP_COLOR,clr);
}
//+------------------------------------------------------------------+
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