This tool is designed as a technical analysis indicator for trading platforms. It focuses on identifying market trends and potential entry/exit points by analyzing the relationship between multiple Moving Averages (MAs) simultaneously. Rather than looking at just one line on a chart, it evaluates the "harmony" or "discord" between a large group of averages to determine the overall momentum of the market.
Core Logic and Data Processing
The script works by calculating three distinct types of data points:
- Trend Degree: This measures the distance between the current market price and a specific "check" Moving Average. It essentially tells the user how far the price has moved away from that average, helping to gauge the strength of a current move.
- Sort Degree: This looks at the relative positions of various Moving Averages against each other. It determines if the averages are grouped together or spread apart.
- MA Sort Relative: This is a specialized calculation that compares the specific group of user-defined Moving Averages against the primary "check" average to see how they are interacting as a collective unit.
Signal Generation
The indicator processes these three values into percentage-based scores, allowing it to visualize the market's state in a dedicated sub-window. Based on these scores, it generates specific visual signals:
- Entry Signals (Open Orders): The script looks for "confluence"—moments where the price trend, the relative spacing of the averages, and the group interaction all point in the same direction. If these conditions align to a certain threshold, it marks a potential opening opportunity.
- Exit Signals (Close Orders): These are triggered by changes in momentum. The script monitors whether the "Trend Degree" is losing strength compared to the previous candle or if the relative spacing of the averages begins to cross over the trend line. If the momentum shifts or an open position's conditions are no longer met, it provides a signal to close the trade.
Summary for the User
In simple terms, this script acts as a "consensus" meter. Instead of relying on one indicator that might give a false signal, it looks at a whole "family" of Moving Averages. It only triggers a signal when the price action, the distance from the average, and the relationship between different timeframes all agree that a move is happening. This helps filter out market noise and identifies high-probability trend shifts.
Indicators Used
Miscellaneous
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madnessMA
//+------------------------------------------------------------------+
//| Mix.mq4 |
//| karceWZROKIEM |
//| http://www.kampno.pl/ |
//+------------------------------------------------------------------+
#property copyright "karceWZROKIEM"
#property link "http://www.kampno.pl/"
#property indicator_separate_window
#property indicator_buffers 5
#property indicator_color1 Black
#property indicator_color2 Red
#property indicator_color3 Silver
#property indicator_color4 Blue
#property indicator_style4 STYLE_DASH
#property indicator_color5 Blue
#property indicator_maximum 125
#property indicator_minimum -125
//---- input parameters
extern string ________________01="List of MAs, eg form fiobo: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597";
extern string listMA="1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233";
extern string ________________02="MA to check SORT DEGREE";
extern int MAcheck=8;
extern string ________________10="MA sort type";
extern int MAmethod = 1; // iMA moving average method:
// 0 Simple moving average,
// 1 Exponential moving average,
// 2 Smoothed moving average,
// 3 Linear weighted moving average.
//---- buffers
double openOrder[];
double closeOrder[];
double Trend[];
double MAsortRel[];
double sortRel[];
int MAs[];
int cntMAs;
double maVal[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
string short_name;
//---- indicator line
SetIndexStyle(0,DRAW_ARROW);
SetIndexArrow(0,159);
SetIndexBuffer(0,openOrder);
SetIndexStyle(1,DRAW_ARROW);
SetIndexArrow(1,159);
SetIndexBuffer(1,closeOrder);
SetIndexStyle(2,DRAW_LINE);
SetIndexBuffer(2,Trend);
SetIndexStyle(3,DRAW_LINE);
SetIndexBuffer(3,MAsortRel);
SetIndexStyle(4,DRAW_LINE);
SetIndexBuffer(4,sortRel);
//---- name for DataWindow and indicator subwindow label
short_name="madnessMA("+MAcheck+" -> "+listMA+")";
IndicatorShortName(short_name);
SetIndexLabel(0,"Open");
SetIndexLabel(1,"Close");
SetIndexLabel(2,"TrendDegree");
SetIndexLabel(3,"MASortDegree");
SetIndexLabel(4,"SortDegree");
//----
SetLevelValue(0,80);
SetLevelValue(1,-80);
SetLevelStyle(STYLE_SOLID,1,Silver);
//----
cntMAs = splitINT(MAs, listMA, ",");
ArrayResize(maVal, cntMAs+1);
return(0);
}
//+------------------------------------------------------------------+
double Trend(int MA, int i)
{
//return (Close[i] - iMA(NULL,0,MA,0,MAmethod,PRICE_OPEN,i));
return (Close[i] - maVal[MA]);
}
double sortRel(int MA1, int MA2, int i)
{
//return (iMA(NULL,0,MA2,0,MAmethod,PRICE_OPEN,i) - iMA(NULL,0,MA1,0,MAmethod,PRICE_OPEN,i));
return (maVal[MA2] - maVal[MA1]);
}
////////////////////////////////////////////////////////////////////
int start()
{
int counted_bars,i,j,k;
double tmp;
double TrendSUM = 0, TrendBUFF = 0;
double sortRelSUM = 0, sortRelBUFF = 0;
double MAsortRelSUM = 0, MAsortRelBUFF = 0;
//if(Bars<=MA) return(0);
counted_bars=IndicatorCounted(); // Number of counted bars
i=Bars-counted_bars-1; // Index of the first uncounted
while(i>=0)
{
setMAs(i);
TrendSUM = 0; TrendBUFF = 0;
MAsortRelSUM = 0; MAsortRelBUFF = 0;
for(int ii=0; ii<cntMAs; ii++)
{
//tmp = sortRel(MAs[ii], MAcheck, i);
tmp = sortRel(ii, cntMAs, i);
if(MAs[ii] > MAcheck) tmp = 1*tmp; else tmp = -1*tmp;
MAsortRelBUFF += tmp;
MAsortRelSUM += MathAbs(tmp);
//tmp = Trend(MAs[ii], i);
tmp = Trend(ii, i);
TrendBUFF += tmp;
TrendSUM += MathAbs(tmp);
if(ii-1<cntMAs)
{
sortRelSUM = 0; sortRelBUFF = 0;
for(int iii=0; iii<cntMAs; iii++)
if(ii!=iii)
{
//tmp = sortRel(MAs[ii], MAs[iii], i);
tmp = sortRel(ii, iii, i);
sortRelBUFF += tmp;
sortRelSUM += MathAbs(tmp);
}
}
}
//Print("Trend: B "+TrendBUFF+" S "+TrendSUM);
// Print("sortRel: B "+sortRelBUFF+" S "+sortRelSUM);
if(TrendSUM>0)Trend[i] = 100 * TrendBUFF / TrendSUM;
if(sortRelSUM>0)sortRel[i] = 100 * sortRelBUFF/sortRelSUM;
if(MAsortRelSUM>0)MAsortRel[i] = 100 * MAsortRelBUFF/MAsortRelSUM;
if( sortRel[i] < Trend[i] && sortRel[i] <= MAsortRel[i] && sortRel[i] < 0)
openOrder[i] = 110;
else if( sortRel[i] > Trend[i] && sortRel[i] >= MAsortRel[i] && sortRel[i] > 0)
openOrder[i] = -110;
else openOrder[i] = EMPTY_VALUE;
if( (Trend[i] < Trend[i+1] && sortRel[i] < Trend[i] ) || openOrder[i] == -110 )
closeOrder[i] = 110;
else if( (Trend[i] > Trend[i+1] && sortRel[i] > Trend[i] ) || openOrder[i] == 110 )
closeOrder[i] = -110;
else closeOrder[i] = EMPTY_VALUE;
i--;
}
return(0);
}
//+------------------------------------------------------------------+
int splitINT(int& arr[], string str, string sym)
{
ArrayResize(arr, 0);
string item;
int pos, size;
int len = StringLen(str);
for (int i=0; i < len;) {
pos = StringFind(str, sym, i);
if (pos == -1) pos = len;
item = StringSubstr(str, i, pos-i);
item = StringTrimLeft(item);
item = StringTrimRight(item);
size = ArraySize(arr);
ArrayResize(arr, size+1);
arr[size] = StrToInteger(item);
i = pos+1;
}
return (ArraySize(arr));
}
void setMAs(int i)
{
for(int index=0; index<cntMAs; index++)
maVal[index] = iMA(NULL,0,MAs[index],0,MAmethod,PRICE_CLOSE,i);
maVal[cntMAs] = iMA(NULL,0,MAcheck,0,MAmethod,PRICE_CLOSE,i);
}
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