volumeMA_v2
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This script is designed as a visual trading tool for MetaTrader 4 that helps traders analyze market volume by combining two distinct types of data: raw volume activity and calculated moving averages. Instead of looking at messy, raw numbers, it translates trading activity into a structured visual format in a separate window below your main price chart.
Core Functionality
The indicator works by monitoring the "Volume" (the amount of assets traded) and processing it in three specific ways:
1. Dynamic Volume Coloring (The Histogram) The most immediate visual feature is a dual-colored histogram. The script compares the current volume against the volume of the previous bar to determine its color:
- Red Bars: Appear when the trading volume has decreased compared to the previous period.
- Green Bars: Appear when the trading volume has increased compared to the previous period.
- Consistency Logic: If the volume remains exactly the same as the previous bar, the script intelligently remembers the previous color to ensure the visual flow remains smooth and unbroken.
2. Customizable Moving Averages (The White Line) Overlaid on top of this colored histogram is a white line representing a "Moving Average" of the volume. This line helps smooth out the "noise" of individual spikes, allowing you to see the broader trend of trading activity. The script is highly versatile because it offers four different mathematical methods for calculating this average:
- Simple Moving Average (SMA): A straightforward average where all recent periods are weighted equally.
- Exponential Moving Average (EMA): Places more importance on the most recent data, making it more responsive to sudden changes.
- Smoothed Moving Average (SMMA): A "lagging" smoother that provides a very steady trend line by considering a wider range of historical data.
- Linear Weighted Moving Average (LWMA): Assigns a linear weight to the data, where the most recent data points have the highest impact on the current average value.
How it Benefits the User
By combining these elements, the script allows a trader to see two things at once:
- Momentum: Through the colored histogram, you can instantly see if trading intensity is "speeding up" (Green) or "slowing down" (Red).
- Trend: Through the moving average line, you can identify whether the overall volume is trending upward, downward, or remaining flat over a specific timeframe defined by your settings.
Essentially, it filters out the distractions of raw market data to provide a clear, color-coded map of how much "fuel" (volume) is being put into the market at any given moment.
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volumeMA_v2
//+------------------------------------------------------------------+
//| Volume with Custom Moving Average.mq4 |
//| Copyright © 2004, MetaQuotes Software Corp. |
//| http://www.metaquotes.net/ |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2004, MetaQuotes Software Corp. Modified RonT"
#property link "http://www.metaquotes.net/"
//----
#property indicator_separate_window
#property indicator_buffers 3
#property indicator_color1 Red
#property indicator_color2 Green
#property indicator_color3 White
// User input
extern int MA_Period=13;
extern int MA_Shift=0;
extern int MA_Method=0;
// Buffers
double VolBuffer1[]; // value down
double VolBuffer2[]; // value up
double VolBuffer3[]; // moving average
//----
int ExtCountedBars=0;
int lastcolor=0;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
int draw_begin;
string short_name;
// indicator buffers mapping, drawing settings and Shift
// Histogram downArrow Red
SetIndexBuffer(0,VolBuffer1);
SetIndexStyle(0,DRAW_HISTOGRAM);
SetIndexShift(0,MA_Shift);
// Histogram upArrow Green
SetIndexBuffer(1,VolBuffer2);
SetIndexStyle(1,DRAW_HISTOGRAM);
SetIndexShift(1,MA_Shift);
// Moving average line white
SetIndexBuffer(2,VolBuffer3);
SetIndexStyle(2,DRAW_LINE);
SetIndexShift(2,MA_Shift);
IndicatorDigits(MarketInfo(Symbol(),MODE_DIGITS));
//----
if(MA_Period<2) MA_Period=2;
draw_begin=MA_Period-1;
//----
switch(MA_Method)
{
case 1 : short_name="EMA("; draw_begin=0; break;
case 2 : short_name="SMMA("; break;
case 3 : short_name="LWMA("; break;
default : short_name="SMA("; MA_Method=0;
}
IndicatorShortName(short_name+MA_Period+")");
SetIndexDrawBegin(0,draw_begin);
return(0);
}
//+------------------------------------------------------------------+
//| Main |
//+------------------------------------------------------------------+
int start()
{
if(Bars<=MA_Period) return(0);
ExtCountedBars=IndicatorCounted();
// check for possible errors
if (ExtCountedBars<0) return(-1);
// last counted bar will be recounted
if (ExtCountedBars>0) ExtCountedBars--;
//----
switch(MA_Method)
{
case 0 : sma(); break;
case 1 : ema(); break;
case 2 : smma(); break;
case 3 : lwma();
}
return(0);
}
//+------------------------------------------------------------------+
//| Simple Moving Average |
//+------------------------------------------------------------------+
void sma()
{
double sum=0;
int i,pos=Bars-ExtCountedBars-1;
// initial accumulation
if(pos<MA_Period) pos=MA_Period;
for(i=1;i<MA_Period;i++,pos--)
sum+=Volume[pos];
while(pos>=0)
{
sum+=Volume[pos];
VolBuffer3[pos]=sum/MA_Period;
sum-=Volume[pos+MA_Period-1];
Vcolor(pos);
pos--;
}
// zero initial bars
if(ExtCountedBars<1)
for(i=1;i<MA_Period;i++) VolBuffer1[Bars-i]=0;
}
//+------------------------------------------------------------------+
//| Exponential Moving Average |
//+------------------------------------------------------------------+
void ema()
{
double pr=2.0/(MA_Period+1);
int pos=Bars-2;
//----
if(ExtCountedBars>2) pos=Bars-ExtCountedBars-1;
while(pos>=0)
{
if(pos==Bars-2) VolBuffer3[pos+1]=Volume[pos+1];
VolBuffer3[pos]=Volume[pos]*pr+VolBuffer3[pos+1]*(1-pr);
Vcolor(pos);
pos--;
}
}
//+------------------------------------------------------------------+
//| Smoothed Moving Average |
//+------------------------------------------------------------------+
void smma()
{
double sum=0;
int i,k,pos=Bars-ExtCountedBars+1;
//----
pos=Bars-MA_Period;
if(pos>Bars-ExtCountedBars) pos=Bars-ExtCountedBars;
while(pos>=0)
{
if(pos==Bars-MA_Period)
{
// initial accumulation
for(i=0,k=pos;i<MA_Period;i++,k++)
{
sum+=Volume[k];
// zero initial bars
VolBuffer3[k]=0;
}
}
else sum=VolBuffer3[pos+1]*(MA_Period-1)+Volume[pos];
VolBuffer3[pos]=sum/MA_Period;
pos--;
}
}
//+------------------------------------------------------------------+
//| Linear Weighted Moving Average |
//+------------------------------------------------------------------+
void lwma()
{
double sum=0.0,lsum=0.0;
double price;
int i,weight=0,pos=Bars-ExtCountedBars-1;
//---- initial accumulation
if(pos<MA_Period) pos=MA_Period;
for(i=1;i<=MA_Period;i++,pos--)
{
price=Volume[pos];
sum+=price*i;
lsum+=price;
weight+=i;
}
//---- main calculation loop
pos++;
i=pos+MA_Period;
while(pos>=0)
{
VolBuffer3[pos]=sum/weight;
if(pos==0) break;
pos--;
i--;
price=Volume[pos];
sum=sum-lsum+price*MA_Period;
lsum-=Volume[i];
lsum+=price;
}
//---- zero initial bars
if(ExtCountedBars<1)
for(i=1;i<MA_Period;i++) VolBuffer3[Bars-i]=0;
}
//+------------------------------------------------------------------+
//| Color depends on gain or loss and previous volume |
//+------------------------------------------------------------------+
// 1 - histo down red
// 2 - histo up green
// 3 - line white
//+------------------------------------------------------------------+
//| |
//+------------------------------------------------------------------+
void Vcolor(int p)
{
if (Volume[p+1]>Volume[p])
{
VolBuffer1[p]=Volume[p];
VolBuffer2[p]=0;
lastcolor=Red;
}
if (Volume[p+1]<Volume[p])
{
VolBuffer1[p]=0;
VolBuffer2[p]=Volume[p];
lastcolor=Green;
}
if (Volume[p+1]==Volume[p])
{
if(lastcolor==Red )
{
VolBuffer1[p]=Volume[p];
VolBuffer2[p]=0;
}
if(lastcolor==Green )
{
VolBuffer1[p]=0;
VolBuffer2[p]=Volume[p];
}
}
}
//+------------------------------------------------------------------+
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