t3_adx_+di_-di_burst_v1
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This custom indicator is designed to provide traders with a refined, smoothed visualization of market momentum and trend strength. By combining two distinct mathematical concepts—the ADX (Average Directional Index) and the T3 Moving Average—it filters out market noise to highlight clearer price movements.
Core Logic Breakdown
1. Identifying Trend Strength (The ADX Component) The script looks at two specific components of the market: the "Plus Directional Index" (+DI) and the "Minus Directional Index" (-DI).
- +DI represents upward pressure in the price.
- -DI represents downward pressure in the price. Rather than looking at raw price, the indicator focuses on the velocity and intensity of these two opposing forces to determine which way the market is leaning.
2. Advanced Smoothing (The T3 Component) Standard moving averages can often be "laggy," meaning they react too slowly to sudden changes, or they can be too "jittery," reacting to every minor price flicker. This script utilizes a sophisticated smoothing algorithm known as the T3. The T3 is designed to provide a much tighter fit to the price action while maintaining a smooth curve. It achieves this through a specific weighted calculation that reduces the delay typically found in traditional indicators, allowing for a more responsive view of current trends.
3. The "Burst" Synthesis The unique logic of this script lies in how it merges these two elements. It takes the raw directional data (+DI and -DI) and passes it through the T3 smoothing filter.
- The Green Line: Represents the smoothed upward momentum (+DI). When this line is prominent, it signals stronger bullish (upward) pressure.
- The Red Line: Represents the smoothed downward momentum (-DI). When this line is prominent, it signals stronger bearish (downward) pressure.
Practical Application for Traders
By applying this dual-layer logic, the indicator transforms volatile market data into two distinct, readable lines. Instead of seeing erratic spikes in price, a user can observe the relationship between these two lines.
The goal is to identify "bursts" or clear shifts in momentum. When one line moves significantly above the other, it indicates a transition in trend dominance. Because of the T3 smoothing, these signals are intended to be more stable than standard indicators, helping traders distinguish between a temporary price fluctuation and a sustained move in a specific direction.
/*-----------------------------+
| |
| Shared by www.Aptrafx.com |
| |
+------------------------------*/
//+-------------------------------------------------------------------------+
//| t3_adx_+di_-di_burst.mq4 |
//| Copyright © 2005, |
//| http://finance.groups.yahoo.com/group/MetaTrader_Experts_and_Indicators/|
//+-------------------------------------------------------------------------+
#property copyright "Copyright © 2005,"
#property link "http://finance.groups.yahoo.com/group/MetaTrader_Experts_and_Indicators/"
#property indicator_separate_window
#property indicator_buffers 2
#property indicator_color1 LawnGreen
#property indicator_color2 Red
#property indicator_level1 0
extern int adxPeriods = 10;
extern int T3_Period = 10;
extern double b = -0.382;
double MapBuffer[];
double e1,e2,e3,e4,e5,e6;
double c1,c2,c3,c4;
double n,w1,w2,b2,b3;
double MapBuffer1[];
double ae1,ae2,ae3,ae4,ae5,ae6;
double ac1,ac2,ac3,ac4;
double an,aw1,aw2,ab2,ab3;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- indicators setting
SetIndexStyle(0,DRAW_LINE,STYLE_SOLID,1,LawnGreen);
SetIndexStyle(1,DRAW_LINE,STYLE_SOLID,1,Red);
IndicatorDigits(MarketInfo(Symbol(),MODE_DIGITS));
IndicatorShortName("t3_adx_+di_-di_burst "+T3_Period);
SetIndexBuffer(0,MapBuffer);
SetIndexBuffer(1,MapBuffer1);
//---- variable reset
e1=0; e2=0; e3=0; e4=0; e5=0; e6=0;
c1=0; c2=0; c3=0; c4=0;
n=0;
w1=0; w2=0;
b2=0; b3=0;
b2=b*b;
b3=b2*b;
c1=-b3;
c2=(3*(b2+b3));
c3=-3*(2*b2+b+b3);
c4=(1+3*b+b3+3*b2);
n=T3_Period;
if (n<1) n=1;
n = 1 + (0.5*(n-1));
w1 = 2 / (n + 1);
w2 = 1 - w1;
ae1=0; ae2=0; ae3=0; ae4=0; ae5=0; ae6=0;
ac1=0; ac2=0; ac3=0; ac4=0;
an=0;
aw1=0; aw2=0;
ab2=0; ab3=0;
ab2=b*b;
ab3=ab2*b;
ac1=-ab3;
ac2=(3*(ab2+ab3));
ac3=-3*(2*ab2+b+ab3);
ac4=(1+3*b+ab3+3*ab2);
an=T3_Period;
if (an<1) an=1;
an = 1 + (0.5*(an-1));
aw1 = 2 / (an + 1);
aw2 = 1 - aw1;
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
int limit=2000;
//---- indicator calculation
for(int i=limit; i>=0; i--)
{
e1 = ((w1*(iADX(Symbol(),0,adxPeriods,PRICE_CLOSE,MODE_PLUSDI,i)-iADX(Symbol(),0,adxPeriods,PRICE_CLOSE,MODE_PLUSDI,i+1))) + w2*e1);
e2 = ((w1*e1) + w2*e2);
e3 = ((w1*e2) + w2*e3);
e4 = ((w1*e3) + w2*e4);
e5 = ((w1*e4) + w2*e5);
e6 = ((w1*e5) + w2*e6);
MapBuffer[i]=((((c1*e6) + c2*e5) + c3*e4) + c4*e3)*1000;
ae1 = ((aw1*(iADX(Symbol(),0,adxPeriods,PRICE_CLOSE,MODE_MINUSDI,i)-iADX(Symbol(),0,adxPeriods,PRICE_CLOSE,MODE_MINUSDI,i+1))) + aw2*ae1);
ae2 = ((aw1*ae1) + aw2*ae2);
ae3 = ((aw1*ae2) + aw2*ae3);
ae4 = ((aw1*ae3) + aw2*ae4);
ae5 = ((aw1*ae4) + aw2*ae5);
ae6 = ((aw1*ae5) + aw2*ae6);
MapBuffer1[i]=((((ac1*ae6) + ac2*ae5) + ac3*ae4) + ac4*ae3)*1000;
}
//----
return(0);
}
//+------------------------------------------------------------------+
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