Summary:
This indicator script is an oscillator built out of four different periods that are combined into one, taking into account both long and short cycles.

Calculation:
Complex, see script.

Developer:
Martin J. Pring

Interpretation:
1. Overbought: When the underlying indicator is moving upwards, but the indicator script is approaching its upper bound, the underlying indicator is likely to reverse direction and move downwards.
2. Oversold: When the underlying indicator is moving downwards, but the indicator script is approaching its lower bound, the underlying indicator is likely to reverse direction and move upwards.
3. Positive Divergence: When the underlying indicator is moving downwards, but the indicator script is moving upwards, the underlying indicator is likely to reverse direction and move upwards.
4. Negative Divergence: When the underlying indicator is moving upwards, but the indicator script is moving downwards, the underlying indicator is likely to reverse direction and 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 underlying indicator on which to calculate the indicator script. private Indicator _indicator; // Use for the EMA indicator. private Indicator _ema1; // Use for the EMA indicator. private Indicator _ema2; // Use for the EMA indicator. private Indicator _ema3; // Use for the EMA indicator. private Indicator _ema4; #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="indicator" type="Indicator" default="">Use for the underlying indicator on which to calculate the indicator script.</param> /// <param name="rocPeriods1" type="Integer" default="10">Use for the number of periods in the first rate of change.</param> /// <param name="smoothPeriods1" type="Integer" default="10">Use for the number of periods in the first moving average.</param> /// <param name="rocPeriods2" type="Integer" default="20">Use for the number of periods in the second rate of change.</param> /// <param name="smoothPeriods2" type="Integer" default="20">Use for the number of periods in the second moving average.</param> /// <param name="rocPeriods3" type="Integer" default="30">Use for the number of periods in the third rate of change.</param> /// <param name="smoothPeriods3" type="Integer" default="30">Use for the number of periods in the third moving average.</param> /// <param name="rocPeriods4" type="Integer" default="40">Use for the number of periods in the fourth rate of change.</param> /// <param name="smoothPeriods4" type="Integer" default="40">Use for the number of periods in the fourth moving average.</param> public void OnInitialize( Indicator indicator, int rocPeriods1, int smoothPeriods1, int rocPeriods2, int smoothPeriods2, int rocPeriods3, int smoothPeriods3, int rocPeriods4, int smoothPeriods4) { // Set the indicator. _indicator = indicator; // Create the EMA. _ema1 = IndicatorEMA(IndicatorROC(indicator, rocPeriods1), smoothPeriods1); // Create the EMA. _ema2 = IndicatorEMA(IndicatorROC(indicator, rocPeriods2), smoothPeriods2); // Create the EMA. _ema3 = IndicatorEMA(IndicatorROC(indicator, rocPeriods3), smoothPeriods3); // Create the EMA. _ema4 = IndicatorEMA(IndicatorROC(indicator, rocPeriods4), smoothPeriods4); } #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() { return (1 * _ema1[0] + 2 * _ema2[0] + 3 * _ema3[0] + 4 * _ema4[0]) / 10; } #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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