Denis Trubachev - MTF Supertrend, TMA, and BB

SkyWalker 

 (Part 1 of 4: MTF Skywalker Indicator)

A Forex Indicator 

and Forex Expert Advisor 

Technical Specification for MT4

By Rhett Pepe

Propritary Information

Kindly Treat Accordingly

This is a technical specification for both an MT4 indicator and an MT4 Expert Advisor. The project is devided up into four parts.

1) MTF Skywalker Indicator

2) 1M Skywalker Buy/Sell Indicator

3) Skywalker EA (Integration of Indicator  into EA Shell Code)

4) Skywalker MM (Custom Money Management with Data Collection)

This specification concerns only 1) MTF Skywalker Indicator.

The MTF Skywalker indicator is a compound of three seperate indicators working together. They are:

1) Bollinger Bands

2) TMA Bands

3) Supertrend

All the source code for these three indicators is included. The MTF Skywalker indicator has outputs on the 5M, 15M, 1H, 4H, and Daily levels. The final output of the compound indicator occurs on the 1M Chart and Looks like this:

So, as you can see, the final output on the one min chart consists of General Up or Down signals as displayed by red or green. Grey indicatates no recommendation.

Every timeframe takes the same four inputs

Supertrend High (Default 92)

Supertrend Low (Default 8)

BB: (BB Standard Deviation 2.2 is Default)

TMA: (ATR Multiplier, 5 is Default)

Thus, taken together, the inputs interface for the Skywalker MTF indicator looks like this

***5M***

STH: 92

STL: 8

BB: 2.2

TMA: 5

***15M***

STH: 92

STL: 8

BB: 2.2

TMA: 8

***1H***

STH: 92

STL: 8

BB: 2.2

TMA: 5

***4H***

STH: 92

STL: 8

BB: 2.2

TMA: 5

***D***

STH: 92

STL: 8

BB: 2.2

TMA:5

1) Supertrend High and Low Numbers. What do they mean?

Included in the project is the SkywalkerMTF template. In addition to the main window, which contains the Bollinger Bands and the TMA bands, it has one indicator bar. This indicator bar contains an indicator named SkyWalker Green/Red and a second indicator named SkyWalker 10.7Sto. See Below:

Now, at the current point, the only purpose of the 107 STO indicaor is to draw the level lines at 8 and 92. This paramater can be accessed by going to the 10.7 STO and going to the levels section. The Green/Red supertrend indicator does not operate on a scale of 1-100 and so can not draw those levels in. In addition, the 10.7 Sto code may be used at a later point, so I want it "onboard" so to speak. At this point, however the only functional purpose of the 10.7 STO code is just functioning to draw the lines at 92 and 8.

The Green Red line is a Supertrend line and so it redraws based on how Zoomed In or Zoomed Out the chart is. This MTF code always operates and acts as if the chart is Zoomed Out to the maximum extent possible. Thus, it is important to notice that the Magnifying Glass is, in the context of this indicator, always Zoomed Out until it can go no further. This condition is met when the Magnifying Glass with the Minus Sign is in a Greyed Out state. For example:

Now, lets imagine we are in real time and going along a chart looking at the relationship between the supertrend line and the 92 level line and draw in vertical green and red lines depending on the relationship. We will draw a red line when the supertrend moves above 92 and another red line when the supertrend moves below 92. So, here is what the chart looks like as we approach 92:

Now, when the chart hits 92, we put in a red line. This is the beginning of a potential SELL area according to the supertrend. Notice the Red line in the picture below:

Now, we continue along untill the supertrend passes below 92. At this point, we draw a second red line. Observe the picture below:

So, this is it what it means, in the context of the MTF Skywalker indicator, to have a supertrend setting of 92. If the supertrend setting was 94, for example, then this function would isolate a smaller horizontal area of the chart.

Now, let's zoom into this particular area of the chart and take a closer look at what is going on with the BB and the TMA bands.

Within these two red lines, we are searching for areas of price that penetrate BOTH the BB going Up (in blue) and the upper red TMA line. Naturally, thinking in the reverse case, if the Supertrend was BELOW 8, then we would be searching for areas of price that penetrated both the BB going Down and the lower green TMA line. 

In this particular case, the price does not ever penatrate both the BB and the TMA within the two red lines. So, no signal is given out by the Skywalker indicator to the lower timeframe chart.

Let's move further along this same chart and take a look at the next horizontal area of the chart that is isolated by the Supertrend 92 setting...

Now, in this area of the chart, there are a number of candles which successfully move beyond BOTH the BB and the TMA at the same time for at least part of five candles in a row. Let's draw purple lines around these areas and observe the results:

Whenever the candle is in a purple region, a red signal is given off to the 1M time frame chart. Notice that the first candle has a larger area of purple isolated than the next four. So what we would expect to see on the 1M chart is five red lines in a row, seperated by areas of grey. Also, we would expect the first line to be longer than the next four, as the first candle spends more time in a region of price that is above BOTH the BB and the TMA lines. 

So, if this is a 1Hour chart, we would expect the following pattern to appear on the 1M chart:

So, Dennis, the only other part of the indicator is a bunch of configurable indicator alerts, Sound, Email, and Msg box stuff. The above is the more difficult part. Do you think you can figure this out?

Live Long and Prosper,

Rhett