SilverTrendSignal_v2
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The SilverTrend indicator is designed to identify potential trend reversals by analyzing price action relative to recent highs and lows. Rather than simply following the immediate price, it looks at historical volatility and "support/resistance" zones to determine when a market move might be reaching an exhaustion point.
How the Logic Works
1. Establishing Boundaries (The Volatility Zone) The script first calculates a specific range of price movement based on a look-back period. It identifies the highest peak and the lowest valley within this window. From there, it calculates a "buffer zone" based on the user's risk settings. This creates two dynamic boundaries:
- A Lower Limit (Support)
- An Upper Limit (Resistance)
2. Measuring Market Momentum The tool continuously monitors the current closing price of the market. It is looking for moments where the price pushes significantly beyond these calculated boundaries—essentially looking for "overextended" moves.
3. Signal Generation Logic The indicator generates visual signals based on two specific behaviors:
- Bearish Signals: If the price closes below the calculated lower limit, the script looks backward to see if there was a prior confirmed upward move. If it detects that the price is breaking down from an established area, it plots a signal line.
- Bullish Signals: Conversely, if the price closes above the upper limit, the script scans for a preceding downward movement. If the price appears to be "breaking out" of a previous lower range, it plots a corresponding signal line.
4. Visual Output The logic translates these mathematical conditions into two distinct colored lines on your chart. These lines act as visual markers, highlighting specific points where the price action has interacted with these dynamic boundaries in a way that suggests a potential shift in momentum.
Summary for the User
Think of this script as an "over-extension" detector. It measures how far the market has stretched in a recent period and marks spots where the price has pushed past those limits. By identifying these extremes, it helps traders see where the current trend might be losing steam or where a new direction could be forming.
/*-----------------------------+
| |
| Shared by www.Aptrafx.com |
| |
+------------------------------*/
//+------------------------------------------------------------------+
//| SilverTrend .mq4 |
//| SilverTrendSignal rewritten by CrazyChart |
//| http://viac.ru/ |
//+------------------------------------------------------------------+
#property copyright "SilverTrend rewritten by CrazyChart"
#property link "http://viac.ru/ "
#property indicator_chart_window
#property indicator_buffers 2
#property indicator_color1 Fuchsia
#property indicator_color2 Aqua
//---- input parameters
extern int RISK=3;
extern int CountBars=300;
extern int SSP=9;
//---- buffers
double ExtSignal1[];
double ExtSignal2[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- indicators
SetIndexStyle(0,DRAW_SECTION);
SetIndexBuffer(0,ExtSignal1);
SetIndexEmptyValue(0,0.0);
SetIndexEmptyValue(1,0.0);
SetIndexStyle(1,DRAW_SECTION);
SetIndexBuffer(1,ExtSignal2);
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custor indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
int counted_bars=IndicatorCounted();
//---- TODO: add your code here
bool firstTime=True;
int i, loopbegin,i1,shift,cnt,deltaBar,deltaPrice,x;
double SsMax, SsMin, K, val1, val2, smin, smax, Table_value2[500][4];
double MyBars,value3,Range,AvgRange,SSP;
double topHigh[2],downLow[2],changePrice;
K=33-RISK;
if (firstTime==true) {
loopbegin = Bars-CountBars;
MyBars=loopbegin;
firstTime=False;
};
for (shift=Bars-SSP;shift>=0;shift--) {
Range=0;
AvgRange=0;
for (i1=shift;i1<=shift+9;i1++) {
AvgRange=AvgRange+MathAbs(High[i1]-Low[i1]);
};
Range=AvgRange/10;
SsMax = High[Highest(MODE_HIGH,shift+SSP-1,SSP)];
SsMin = Low[Lowest(MODE_LOW,shift+SSP-1,SSP)];
smin = SsMin+(SsMax-SsMin)*K/100;
smax = SsMax-(SsMax-SsMin)*K/100;
Table_value2[shift][1]=shift;
Table_value2[shift][2]=Close[shift];
Table_value2[shift][3]=0;
ExtSignal1[shift]=0;//ExtSignal1[shift+1];
ExtSignal2[shift]=0;//ExtSignal2[shift+1];
value3=0;
if (Close[shift]<smin) {
i1=1;
Table_value2[shift][3]=-1;
while (Table_value2[shift+i1][3]>-1 && Table_value2[shift+i1][3]<1 && Table_value2[shift+i1][2]>0) {
i1=i1+1;
};
if (Table_value2[shift+i1][3]==1) {
value3=High[shift]+Range*0.5;
ExtSignal1[shift]=value3;
};
};
if (Close[shift]>smax) {
i1=1;
Table_value2[shift][3]=1;
while (Table_value2[shift+i1][3]>-1 && Table_value2[shift+i1][3]<1 && Table_value2[shift+i1][2]>0) {
i1=i1+1;
};
if (Table_value2[shift+i1][3]==-1) {
value3=Low[shift]-Range*0.5;
ExtSignal2[shift]=value3;
};
};
if (shift>0) loopbegin=loopbegin+1;
if (MyBars<Bars && shift==0) {
for (i1=72;i1==2;i1--) {
Table_value2[i1][1]=Table_value2[i1-1][1];
Table_value2[i1][2]=Table_value2[i1-1][2];
Table_value2[i1][3]=Table_value2[i1-1][3];
};
MyBars=MyBars+1;
};
};
//----
return(0);
}
//+------------------------------------------------------------------+
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