nma20

Author: Copyright � 2007, MetaQuotes Software Corp.
nma20

Technical Logic Overview

This script is designed as a custom technical indicator for the MetaTrader 4 platform. Its primary objective is to calculate and display a dynamic moving average on a price chart, using a sophisticated method of determining how much weight to give to recent price action versus historical data.

Core Methodology

The logic operates by analyzing price fluctuations over a specific lookback period. Instead of using a standard fixed calculation (like a simple or traditional exponential moving average), this indicator follows a multi-step mathematical process:

  • Logarithmic Price Analysis: The script begins by converting raw closing prices into logarithmic values. This is a common practice in finance to normalize price data, ensuring that percentage changes are treated consistently regardless of the asset's total price value.
  • Volatility Measurement: It calculates the absolute difference between these logarithmic values across 40 consecutive data points. Essentially, it measures the "distance" moved between each bar in the sequence.
  • Weighted Smoothing (The Ratio): The indicator creates two distinct sums based on these differences:
    1. A standard sum of price movements over a shorter interval.
    2. A weighted sum where the price movements are multiplied by a square root factor. By dividing the weighted sum by the standard sum, the script generates a unique Ratio. This ratio acts as a dynamic "smoothing factor" that adjusts automatically based on current market volatility.
  • Adaptive Moving Average: Finally, the script applies this dynamic ratio to calculate the moving average. Because the ratio changes based on how fast or slow the price is moving, the resulting line adapts to the market's rhythm—becoming more responsive during high-activity periods and smoother during low-activity periods.

Visual Output

The indicator generates a continuous line plotted directly onto the main price window. It utilizes four internal buffers to manage its calculations, though the primary output is a single visual trend line (rendered in pink by default) that helps traders identify the underlying direction of the market while filtering out minor "noise."

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nma20 
//+------------------------------------------------------------------+
//|                                                          nmm.mq4 |
//|                      Copyright © 2007, MetaQuotes Software Corp. |
//|                                        http://www.metaquotes.net |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2007, MetaQuotes Software Corp."
#property link      "http://www.metaquotes.net"
#property indicator_buffers 4
#property indicator_chart_window
double extmapbuffer1[];
double extmapbuffer2[];
double extmapbuffer3[];
double extmapbuffer4[];
#property indicator_color1 Pink
#property indicator_color2 Blue
#property indicator_color3 Green
#property indicator_color4 Yellow
//+------------------------------------------------------------------+
//| Custom indicator initialization function                         |
//+------------------------------------------------------------------+
int init()
  {
  SetIndexStyle (0,DRAW_LINE);
  SetIndexStyle (1,DRAW_LINE);
  SetIndexStyle (2,DRAW_LINE);
  SetIndexStyle (3, DRAW_LINE);

  SetIndexBuffer (0, extmapbuffer1);
  SetIndexBuffer (1, extmapbuffer2);
  SetIndexBuffer (2, extmapbuffer3);
  SetIndexBuffer (3, extmapbuffer4);

  string short_name = "NMR";
  IndicatorShortName (short_name);
//---- indicators
//----
   return(0);
  }
//+------------------------------------------------------------------+
//| Custom indicator deinitialization function                       |
//+------------------------------------------------------------------+
int deinit()
  {
//----
   
//----
   return(0);
  }
//+------------------------------------------------------------------+
//| Custom indicator iteration function                              |
//+------------------------------------------------------------------+
int start()
  {
   int counted_bars=IndicatorCounted();
   double sum=0,sum2=0, ratio, dif0,dif1,dif2,dif3,dif4,dif5,dif6,dif7,dif8,dif9,dif10,dif11,dif12,dif13,dif14,dif15,dif16,dif17,dif18,dif19,dif20,dif21,dif22,dif23,dif24,dif25,dif26,dif27,dif28,dif29,dif30,dif31,dif32,dif33,dif34,dif35,dif36,dif37,dif38,dif39,dif40;
   double  adif0,adif1,adif2,adif3,adif4,adif5,adif6,adif7,adif8,adif9,adif10,adif11,adif12,adif13,adif14,adif15,adif16,adif17,adif18,adif19,adif20,adif21,adif22,adif23,adif24,adif25,adif26,adif27,adif28,adif29,adif30,adif31,adif32,adif33,adif34,adif35,adif36,adif37,adif38,adif39,adif40;
   int pos = Bars ;
   while (pos>=0)
   {
   if (counted_bars<0) return (-1);
   if (counted_bars>0) counted_bars--;
   dif0 = MathAbs(MathLog(Close[pos])*100000 - MathLog(Close [pos+1])*100000);
   dif1 = MathAbs(MathLog(Close[pos+1])*100000 - MathLog(Close [pos+2])*100000);
   dif2 = MathAbs(MathLog(Close[pos+2])*100000 - MathLog(Close [pos+3])*100000) ;
   dif3 = MathAbs(MathLog(Close[pos+3])*100000 - MathLog(Close [pos+4])*100000) ;
   dif4 = MathAbs(MathLog(Close[pos+4])*100000 - MathLog(Close [pos+5])*100000) ;
   dif5 = MathAbs(MathLog(Close[pos+5])*100000 - MathLog(Close [pos+6])*100000) ;
   dif6 = MathAbs(MathLog(Close[pos+6])*100000 - MathLog(Close [pos+7])*100000) ;
   dif7 = MathAbs(MathLog(Close[pos+7])*100000 - MathLog(Close [pos+8])*100000) ;
   dif8 = MathAbs(MathLog(Close[pos+8])*100000 - MathLog(Close [pos+9])*100000) ;
   dif9 = MathAbs(MathLog(Close[pos+9])*100000 - MathLog(Close [pos+10])*100000) ;
   dif10 = MathAbs(MathLog(Close[pos+10])*100000 - MathLog(Close [pos+11])*100000); 
   dif11 = MathAbs(MathLog(Close[pos+11])*100000 - MathLog(Close [pos+12])*100000) ;
   dif12 = MathAbs(MathLog(Close[pos+12])*100000 - MathLog(Close [pos+13])*100000) ;
   dif14 = MathAbs(MathLog(Close[pos+13])*100000 - MathLog(Close [pos+14])*100000) ;
   dif15 = MathAbs(MathLog(Close[pos+14])*100000 - MathLog(Close [pos+15])*100000) ;
   dif16 = MathAbs(MathLog(Close[pos+15])*100000 - MathLog(Close [pos+16])*100000);
   dif17 = MathAbs(MathLog(Close[pos+16])*100000 - MathLog(Close [pos+17])*100000) ;
   dif18 = MathAbs(MathLog(Close[pos+17])*100000 - MathLog(Close [pos+18])*100000) ;
   dif19 = MathAbs(MathLog(Close[pos+18])*100000 - MathLog(Close [pos+19])*100000);
   dif20 = MathAbs(MathLog(Close[pos+19])*100000 - MathLog(Close [pos+20])*100000);
   dif21 = MathAbs(MathLog(Close[pos+20])*100000 - MathLog(Close [pos+21])*100000) ;
   dif22 = MathAbs(MathLog(Close[pos+21])*100000 - MathLog(Close [pos+22])*100000) ;
   dif23 = MathAbs(MathLog(Close[pos+22])*100000 - MathLog(Close [pos+23])*100000) ;
   dif24 = MathAbs(MathLog(Close[pos+23])*100000 - MathLog(Close [pos+24])*100000);
   dif25 = MathAbs(MathLog(Close[pos+24])*100000 - MathLog(Close [pos+25])*100000) ;
   dif26 = MathAbs(MathLog(Close[pos+25])*100000 - MathLog(Close [pos+26])*100000) ;
   dif27 = MathAbs(MathLog(Close[pos+26])*100000 - MathLog(Close [pos+27])*100000) ;
   dif28 = MathAbs(MathLog(Close[pos+27])*100000 - MathLog(Close [pos+28])*100000);
   dif29 = MathAbs(MathLog(Close[pos+28])*100000 - MathLog(Close [pos+29])*100000) ;
   dif30 = MathAbs(MathLog(Close[pos+29])*100000 - MathLog(Close [pos+30])*100000) ;
   dif31 = MathAbs(MathLog(Close[pos+30])*100000 - MathLog(Close [pos+31])*100000) ;
   dif32 = MathAbs(MathLog(Close[pos+32])*100000 - MathLog(Close [pos+33])*100000) ;
   dif34 = MathAbs(MathLog(Close[pos+33])*100000 - MathLog(Close [pos+34])*100000) ;
   dif35 = MathAbs(MathLog(Close[pos+34])*100000 - MathLog(Close [pos+35])*100000) ;
   dif36 = MathAbs(MathLog(Close[pos+36])*100000 - MathLog(Close [pos+37])*100000) ;
   dif38 = MathAbs(MathLog(Close[pos+37])*100000 - MathLog(Close [pos+38])*100000);
   dif39 = MathAbs(MathLog(Close[pos+38])*100000 - MathLog(Close [pos+39])*100000) ;
   dif40 = MathAbs(MathLog(Close[pos+39])*100000 - MathLog(Close [pos+40])*100000) ;
   adif0 = MathAbs(MathLog(Close[pos])*100000 - MathLog(Close [pos+1])*100000) * (MathSqrt(1)-MathSqrt(0));
   adif1 = MathAbs(MathLog(Close[pos+1])*100000 - MathLog(Close [pos+2])*100000) * (MathSqrt(2)-MathSqrt(1));
   adif2 = MathAbs(MathLog(Close[pos+2])*100000 - MathLog(Close [pos+3])*100000) * (MathSqrt(3)-MathSqrt(2));
   adif3 = MathAbs(MathLog(Close[pos+3])*100000 - MathLog(Close [pos+4])*100000) * (MathSqrt(4)-MathSqrt(3));
   adif4 = MathAbs(MathLog(Close[pos+4])*100000 - MathLog(Close [pos+5])*100000) * (MathSqrt(5)-MathSqrt(4));
   adif5 = MathAbs(MathLog(Close[pos+5])*100000 - MathLog(Close [pos+6])*100000)* (MathSqrt(6)-MathSqrt(5));
   adif6 = MathAbs(MathLog(Close[pos+6])*100000 - MathLog(Close [pos+7])*100000) * (MathSqrt(7)-MathSqrt(6));
   adif7 = MathAbs(MathLog(Close[pos+7])*100000 - MathLog(Close [pos+8])*100000) * (MathSqrt(8)-MathSqrt(7));
   adif8 = MathAbs(MathLog(Close[pos+8])*100000 - MathLog(Close [pos+9])*100000) * (MathSqrt(9)-MathSqrt(8));
   adif9 = MathAbs(MathLog(Close[pos+9])*100000 - MathLog(Close [pos+10])*100000) * (MathSqrt(10)-MathSqrt(9));
   adif10 =MathAbs (MathLog(Close[pos+10])*100000 - MathLog(Close [pos+11])*100000) * (MathSqrt(11)-MathSqrt(10));
   adif11 =MathAbs (MathLog(Close[pos+11])*100000 - MathLog(Close [pos+12])*100000) * (MathSqrt(12)-MathSqrt(11));
   adif12 =MathAbs (MathLog(Close[pos+12])*100000 - MathLog(Close [pos+13])*100000) * (MathSqrt(13)-MathSqrt(12));
   adif14 =MathAbs (MathLog(Close[pos+13])*100000 - MathLog(Close [pos+14])*100000) * (MathSqrt(14)-MathSqrt(13));
   adif15 =MathAbs (MathLog(Close[pos+14])*100000 - MathLog(Close [pos+15])*100000) * (MathSqrt(15)-MathSqrt(14));
   adif16 =MathAbs (MathLog(Close[pos+15])*100000 - MathLog(Close [pos+16])*100000) * (MathSqrt(16)-MathSqrt(15));
   adif17 =MathAbs (MathLog(Close[pos+16])*100000 - MathLog(Close [pos+17])*100000) * (MathSqrt(17)-MathSqrt(16));
   adif18 =MathAbs (MathLog(Close[pos+17])*100000 - MathLog(Close [pos+18])*100000) * (MathSqrt(18)-MathSqrt(17));
   adif19 =MathAbs (MathLog(Close[pos+18])*100000 - MathLog(Close [pos+19])*100000) * (MathSqrt(19)-MathSqrt(18));
   adif20 =MathAbs (MathLog(Close[pos+19])*100000 - MathLog(Close [pos+20])*100000) * (MathSqrt(20)-MathSqrt(19));
   adif21 =MathAbs (MathLog(Close[pos+20])*100000 - MathLog(Close [pos+21])*100000) * (MathSqrt(21)-MathSqrt(20));
   adif22 =MathAbs (MathLog(Close[pos+21])*100000 - MathLog(Close [pos+22])*100000) * (MathSqrt(22)-MathSqrt(21));
   adif23 =MathAbs (MathLog(Close[pos+22])*100000 - MathLog(Close [pos+23])*100000) * (MathSqrt(23)-MathSqrt(22));
   adif24 =MathAbs (MathLog(Close[pos+23])*100000 - MathLog(Close [pos+24])*100000) * (MathSqrt(24)-MathSqrt(23));
   adif25 =MathAbs (MathLog(Close[pos+24])*100000 - MathLog(Close [pos+25])*100000) * (MathSqrt(25)-MathSqrt(24));
   adif26 =MathAbs (MathLog(Close[pos+25])*100000 - MathLog(Close [pos+26])*100000) * (MathSqrt(26)-MathSqrt(25));
   adif27 =MathAbs (MathLog(Close[pos+26])*100000 - MathLog(Close [pos+27])*100000) * (MathSqrt(27)-MathSqrt(26));
   adif28 =MathAbs (MathLog(Close[pos+27])*100000 - MathLog(Close [pos+28])*100000) * (MathSqrt(28)-MathSqrt(27));
   adif29 =MathAbs (MathLog(Close[pos+28])*100000 - MathLog(Close [pos+29])*100000) * (MathSqrt(29)-MathSqrt(28));
   adif30 =MathAbs (MathLog(Close[pos+29])*100000 - MathLog(Close [pos+30])*100000) * (MathSqrt(30)-MathSqrt(29));
   adif31 =MathAbs (MathLog(Close[pos+30])*100000 - MathLog(Close [pos+31])*100000) * (MathSqrt(31)-MathSqrt(30));
   adif32 =MathAbs (MathLog(Close[pos+31])*100000 - MathLog(Close [pos+32])*100000) * (MathSqrt(32)-MathSqrt(31));
   adif33 =MathAbs (MathLog(Close[pos+32])*100000 - MathLog(Close [pos+33])*100000) * (MathSqrt(33)-MathSqrt(32));
   adif34 =MathAbs (MathLog(Close[pos+33])*100000 - MathLog(Close [pos+34])*100000) * (MathSqrt(34)-MathSqrt(33));
   adif35 =MathAbs (MathLog(Close[pos+34])*100000 - MathLog(Close [pos+35])*100000) * (MathSqrt(35)-MathSqrt(34));
   adif36 =MathAbs (MathLog(Close[pos+35])*100000 - MathLog(Close [pos+36])*100000) * (MathSqrt(36)-MathSqrt(35));
   adif37 =MathAbs (MathLog(Close[pos+36])*100000 - MathLog(Close [pos+37])*100000) * (MathSqrt(37)-MathSqrt(36));
   adif38 =MathAbs (MathLog(Close[pos+37])*100000 - MathLog(Close [pos+38])*100000) * (MathSqrt(38)-MathSqrt(37));
   adif39 =MathAbs (MathLog(Close[pos+38])*100000 - MathLog(Close [pos+39])*100000) * (MathSqrt(39)-MathSqrt(38));
   adif40 =MathAbs (MathLog(Close[pos+39])*100000 - MathLog(Close [pos+40])*100000) * (MathSqrt(40)-MathSqrt(39));
   sum = MathRound(dif1+dif2+dif3+dif4+dif5+dif6+dif7+dif8+dif9+dif10+dif11+dif12+dif13+dif14+dif15+dif16+dif17+dif18+dif19+dif20);
   sum2 = MathRound(adif1+adif2+adif3+adif4+adif5+adif6+adif7+adif8+adif9+adif10+adif11+adif12+adif13+adif14+adif15+adif16+adif17+adif18+adif19+adif20);
   ratio = sum2 / sum;
   double thisbar, ema, emalast;
   thisbar=Close[pos];
   ema = emalast + (ratio * (thisbar-emalast)); 
   extmapbuffer1[pos] = ema;
   pos--;
   emalast = ema;
   ema = 0; 
   
   }
//----
   
//----
   return(0);
  }
//+------------------------------------------------------------------+

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