Summary:
This indicator script is a momentum indicator, it measures where the close of an underlying symbol is in relation to the recent trading range.

Calculation:
DSS(i) = 100 * (EMA(EMA(Close(i) - Lowest Low)) / EMA(EMA(Highest Hgh - Lowest Low))

EMA is an Exponential Moving Average.

Range:
0 To 100

Developer:
William Blau

Interpretation:
1. Overbought: When the underlying symbol is moving upwards, but the indicator script is approaching its upper bound, the underlying symbol is likely to reverse direction and move downwards.
2. Oversold: When the underlying symbol is moving downwards, but the indicator script is approaching its lower bound, the underlying symbol is likely to reverse direction and move upwards.

                    
#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 underlying symbol index on which to calculate the indicator script. private int _symbolIndex; // Use for the number of periods to include in the indicator script calculation. private int _periods1; // Use for the EMA smooth factor for periods 2. private double _smoothFactor2; // Use for the EMA smooth factor for periods 3. private double _smoothFactor3; // Use for the p1 value. private double _p1; // Use for the p2 value. private double _p2; // Use for the p3 value. private double _p3; // Use for holding the previous p2 values. private double[] _p2History; // Use for the p2 history index. private int _p2HistoryIndex; // Use for the DSS value. private double _DSS; #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" default="">Use for the underlying symbol index on which to calculate the indicator script.</param> /// <param name="periods1" type="Integer" default="10">Use for the number of periods to include in the indicator script calculation.</param> /// <param name="periods2" type="Integer" default="3">Use for the number of periods to use for the first exponential moving average. </param> /// <param name="periods3" type="Integer" default="3">Use for the number of periods to use for the second exponential moving average. </param> public void OnInitialize( int symbolIndex, int periods1, int periods2, int periods3) { // Set the symbol index. _symbolIndex = symbolIndex; // Set the number of periods. _periods1 = periods1; // Use for holding the p2 history. _p2History = new double[_periods1]; // Set the smooth factor for the first EMA. _smoothFactor2 = 2 / (double)(periods2 + 1); // Set the smooth factor for the second EMA. _smoothFactor3 = 2 / (double)(periods3 + 1); } #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() { double maxHigh = 0; double minLow = double.MaxValue; // Iterate over the data bars while searchin for the highest high and lowest low. for (int i = _periods1 - 1; i >= 0; i--) { // Check whether the max high can be improved. if (BarHigh(_symbolIndex, i) > maxHigh) maxHigh = BarHigh(_symbolIndex, i); // Check whether the min low can be improved. if (BarLow(_symbolIndex, i) < minLow) minLow = BarLow(_symbolIndex, i); } // Calculate the difference between the highest high and lowest low. double r = maxHigh - minLow; if (r <= double.Epsilon) _p1 = IndicatorValueCount() == 0 ? 50 : _p1; else _p1 = Math.Min(100, Math.Max(0, 100 * (BarClose(_symbolIndex, 0) - minLow) / r)); // Check whether _p2 needs to be initialized. if (IndicatorValueCount() == 0) _p2 = _p1; // Advance the EMA p2. else _p2 = _smoothFactor2 * _p1 + (1 - _smoothFactor2) * _p2; // Keep the p2 history value. _p2History[_p2HistoryIndex] = _p2; // Advance the history index. _p2HistoryIndex = (_p2HistoryIndex + 1) % _periods1; maxHigh = 0; minLow = double.MaxValue; // Iterate over the data bars while searchin for the highest high and lowest low. for (int i = _periods1 - 1; i >= 0; i--) { // Check whether the max high can be improved. if (_p2History[i] > maxHigh) maxHigh = _p2History[i]; // Check whether the min low can be improved. if (_p2History[i] < minLow && _p2History[i] != 0) minLow = _p2History[i]; } double s = maxHigh - minLow; if (s <= double.Epsilon) _p3 = IndicatorValueCount() == 0 ? 50 : _p3; else _p3 = Math.Min(100, Math.Max(0, 100 * (_p2 - minLow) / s)); // Check whether DSS needs to be initialized. if (IndicatorValueCount() == 0) _DSS = _p3; else _DSS = _smoothFactor3 * _p3 + (1 - _smoothFactor3) * _DSS; return _DSS; } #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 specified indicator value with the zero pen. return 0; } #endregion } }

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