TSD_CyAn_6_RVI
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This script functions as a specialized technical analysis tool designed to measure and visualize market momentum. It provides traders with a clearer picture of the relative strength or "vigor" of price movements by analyzing historical price data over a specific period.
Core Functionality
The indicator works by calculating the relationship between two primary market components: the difference between opening and closing prices (representing price action) and the difference between high and low prices (representing volatility or range).
To produce a smooth and reliable reading, the logic follows these steps:
- Weighted Price Analysis: Rather than looking at just one candle at a time, the script examines a window of data. It assigns heavier importance to more recent price movements, specifically weighting the two most recent candles twice as much as the others in its calculation sequence.
- Relative Calculation: The tool calculates a ratio between these two components. By dividing the weighted price action by the weighted volatility range, it identifies whether the current move is being driven by strong directional momentum or simply by wide, erratic fluctuations.
- Smoothing and Trend Visualization: The script produces two distinct lines on your chart:
- The Primary Indicator (Yellow): This represents the current relative vigor based on the calculation logic.
- The Lagging Line (Green): This reflects the previous value of the primary indicator, allowing traders to visually identify shifts in momentum, crossovers, and trend changes more easily.
How It Helps Traders
By focusing on "Relative Vigor," this tool helps filter out market noise. Instead of just seeing that a price is moving up or down, it helps determine how much "strength" is behind that move. A high reading suggests strong directional conviction, while a lower or flat reading might indicate a weakening trend or a period of consolidation.
Users can adjust the "Length" parameter to determine how far back into the past the script should look when calculating these averages, allowing for a customized balance between fast-reacting signals and slower, more stable trends.
//+------------------------------------------------------------------+
//| Relative Vigor Index |
//| Copyright © 2006, Luis Guilherme Damiani |
//| http://www.damianifx.com.br |
//|
//+------------------------------------------------------------------+
#property copyright "Copyright © 2006, Luis Guilherme Damiani"
#property link "http://www.damianifx.com.br"
#property indicator_buffers 2
#property indicator_separate_window
//#property indicator_chart_window
#property indicator_color1 Yellow
#property indicator_color2 Green
//#property indicator_color3 Yellow
//---- input parameters
extern double length=10;
//extern int maxbars=2000;
//extern string
//Price_Choice="----- Typical or Median --------------";
//extern bool is_median=true;
//---- buffers
double ind1[];
double ind2[];
//double ind3[];
//double AuxBuffer[]; //Smooth
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- indicators
SetIndexStyle(0,DRAW_LINE);
SetIndexBuffer(0,ind1);
SetIndexStyle(1,DRAW_LINE);
SetIndexBuffer(1,ind2);
// SetIndexStyle(2,DRAW_LINE);
// SetIndexBuffer(2,ind3);
SetLevelValue(0,0.0);
// SetLevelValue(1,-0.8);
// ArrayInitialize(ind1,0.0);
// ArrayInitialize(ind2,0.0);
// ArrayInitialize(ind3,0.0);
/// ArrayResize(AuxBuffer,maxbars+3);
// ArrayInitialize(AuxBuffer,0.0);
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custor indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
//----
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
int counted_bars=IndicatorCounted();
double num=0,denom=0;
//---- check for possible errors
if(counted_bars<0) return(-1);
int limit=Bars-counted_bars;
// if(limit>maxbars)limit=maxbars;
//if (limit>Bars-1)limit=Bars-1;
//----
for (int i = limit; i>=0;i--)
{
num=0;denom=0;
for(int j=0;j<length;j++)
{
num=num+v1(i,j);
denom=denom+v2(i,j);
}
if(denom!=0)ind1[i]=num/denom;
ind2[i]=ind1[i+1];
}
//----
return(0);
}
double v1(int x,int y)
{
double pr;
pr=((Close[x+y]-Open[x+y])+2*(Close[x+y+1]-Open[x+y+1])+2*(Close[x+y+2]-Open[x+y+2])+(Close[x+y+3]-Open[x+y+3]))/6;
return(pr);
}
double v2(int x,int y)
{
double pr;
pr=((High[x+y]-Low[x+y])+2*(High[x+y+1]-Low[x+y+1])+2*(High[x+y+2]-Low[x+y+2])+(High[x+y+3]-Low[x+y+3]))/6;
return(pr);
}
//+------------------------------------------------------------------+
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