Summary:
This indicator script is essentially a momentum of the Accumulation/Distribution Line.

Calculation:
Subtract an exponential moving average of the Accumulation/Distribution Line from another exponential moving average of the Accumulation/Distribution Line with a different number of periods.

Developer:
Marc Chaikin

Interpretation:
1. Upwards Trend: When the indicator script is moving upwards, the underlying symbol is in an upwards trend.
2. Downwards Trend: When the indicator script is moving downwards, the underlying symbol is in a downwards trend.
3. Positive Divergence: When the underlying symbol is moving downwards, but the indicator script is moving upwards, the underlying symbol is likely to reverse direction and move upwards.
4. Negative Divergence: When the underlying symbol is moving upwards, but the indicator script is moving downwards, the underlying symbol is likely to reverse direction and move downwards.
5. Positive Crossover: When the indicator script crosses above zero, the underlying symbol is likely to move upwards.
6. Negative Crossover: When the indicator script crosses below zero, the underlying symbol is likely to move downwards.

                    
#region Namespaces using System; #endregion namespace ScriptCode { /// <summary> /// Indicator scripts are used for calculating a series of numerical values. /// /// This script can be used in several ways: /// (1) It can be used on a chart. /// (2) It can be used from another script. /// (3) It can be used as a script column in a watchlist. /// </summary> public partial class MyIndicator : IndicatorScriptBase // NEVER CHANGE THE CLASS NAME { #region Variables // Use for the short EMA. private Indicator _shortEMA; // Use for the long EMA. private Indicator _longEMA; #endregion #region OnInitialize /// <summary> /// This function accepts the user parameters for the script and is called when a new indicator instance is created. /// One of the parameters accepted by it must be that of a symbol or another script that is /// based on a symbol (drawing, indicator, pattern or signal). This symbol will be used as the underlying symbol for the indicator. /// /// The parameter values can be specified from the user interface (UI) or from another script, depending on usage. /// </summary> /// -------------------------------------------------------------------------------------------------- /// PLEASE USE THE SCRIPT WIZARD (CTRL+W) TO ADD, EDIT AND REMOVE THE SCRIPT PARAMETERS /// -------------------------------------------------------------------------------------------------- /// YOU MUST SET A PARAM TAG FOR EACH PARAMETER ACCEPTED BY THIS FUNCTION. /// ALL PARAM TAGS SHOULD BE SET IN THE 'OnInitialize' REGION, RIGHT ABOVE THE 'OnInitialize' FUNCTION. /// THE ORDER OF THE TAGS MUST MATCH THE ORDER OF THE ACTUAL PARAMETERS. /// REQUIRED ATTRIBUTES: /// (1) name: The exact parameter name. /// (2) type: The type of data to collect from the user: /// Set to "Integer" when the data type is 'int' /// Set to "IntegerArray" when the data type is 'int[]' /// Set to "DateTime" when the data type is 'long' /// Set to "DateTimeArray" when the data type is 'long[]' /// Set to "Boolean" when the data type is 'bool' /// Set to "BooleanArray" when the data type is 'bool[]' /// Set to "Double" when the data type is 'double' /// Set to "DoubleArray" when the data type is 'double[]' /// Set to "String" when the data type is 'string' /// Set to "StringArray" when the data type is 'string[]' /// Set to "Indicator" when the data type is 'Indicator' /// Set to "Pattern" when the data type is 'Pattern' /// Set to "Signal" when the data type is 'Signal' /// Set to "Drawing" when the data type is 'Drawing' /// Set to "Symbol" when the data type is 'int' representing a symbol index. /// OPTIONAL ATTRIBUTES: /// (3) default: The default parameter value is only valid when the type is Integer, Boolean, Double or String. /// (4) min: The minimum parameter value is only valid when the type is Integer or Double. /// (5) max: The maximum parameter value is only valid when the type is Integer or Double. /// EXAMPLE: <param name="" type="" default="" min="" max="">Enter the parameter description here.</param> /// -------------------------------------------------------------------------------------------------- /// <param name="symbolIndex" type="Symbol">Use for the underlying symbol index on which to calculate the Chaikin Oscillator indicator.</param> /// <param name="shortPeriods" type="Integer" default="3">Use for the short / fast number of periods to include in the first AD indicator.</param> /// <param name="longPeriods" type="Integer" default="10">Use for the long / slow number of periods to include in the second AD indicator.</param> public void OnInitialize( int symbolIndex, int shortPeriods, int longPeriods) { // Get an AD indicator on which the indicator script is calculated. Indicator ADIndicator = IndicatorAD(symbolIndex); // Initialize the short EMA. _shortEMA = IndicatorEMA(ADIndicator, Math.Min(shortPeriods, longPeriods)); // Initialize the long EMA. _longEMA = IndicatorEMA(ADIndicator, Math.Max(shortPeriods, longPeriods)); } #endregion #region OnBarUpdate /// <summary> /// This function is used for calculating the indicator value for the latest bar (see the Indicator functions). /// </summary> /// <returns>The indicator value for the latest bar.</returns> public override double OnBarUpdate() { // Set the indicator script values for the current bar. return _shortEMA[0] - _longEMA[0]; } #endregion #region OnChartSetup /// <summary> /// This function is used for setting up the indicator on the chart and registering its pens (see the IndicatorRegisterPen function). /// </summary> public override void OnChartSetup() { // Register a pen. IndicatorRegisterPen(0, "Pen", IQ_Color.ROYAL_BLUE, IQ_DashStyle.SOLID, 2); // Set the indicator in a new chart panel. IndicatorChartSetNewPanel(true); } #endregion #region OnSelectPen /// <summary> /// This function is used for selecting a registered indicator pen with which to color the latest indicator value. /// Call the IndicatorRegisterPen function from the OnChartSetup function in order to register an indicator pen. /// </summary> /// <returns>The indicator pen index to use for coloring the latest indicator value.</returns> public override byte OnSelectPen() { // Color the indicator value with the zero pen. return 0; } #endregion } }

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