I have an MT4 BB MACD indicator. You will note from the screenshot, the dots shown on the indicator fall in 4 categories:
1- Outside the bands going up- small green dots- we'll call this an up signal.
2- Inside the bands going up- large green dots- we'll call this a neutral up bias.
3- Inside the bands going down- large red dots- we'll call this a neutral down bias.
4- Outside the bands going down- small red dots- we'll call this a down signal.
This indicator also has an alert function added to it.
My project involves 2 parts:
1- upgrading the existing indicator to correct a couple of problems.
2- add some criteria to the alert function.
First part- upgrading the existing indicator:
There are two problems with the existing indicator. First, it is possible to get a false positive on the up signal and down signal. The problem occurs when the dots go from a down signal (small red dot) to an up signal (small green dot) before the dots enter the bands. (the same problem occurs going up or down). The corrected version should only show a buy or sell signal (small dots) when the dots are on the proper side of the banded zone for that signal.
The second existing problem is that the current indicator gives an option called "time frame". This option is normally set to "0" meaning that the indicator plots based upon the time frame of the chart to which it is affixed. However, when given a value the indicator when plot on the existing chart at an interval of the new time frame selected. For example, if the indicator is applied to a M15 chart, but the time frame setting is set to 60, the indicator should plot exactly like it would look on a H1 chart. A single dot would be plotted for every 4 15 minute bars. Currently, this does not work correctly. With the given example, although the dots follow roughly the pattern that the H1 chart would have, there are still dots being plotted every 15 minutes. This project would include correcting this problem.
Part 2 of this project involves adding some additional criteria to the alert function:
Currently the alert functions triggers based solely on alerting when a buy or sell signal dot appears following a dot that did not carry that signal. I wish to add the ability to add up to two more criteria: an existing EMA crossover in the appropriate direction and price of the price bar closing above or below a particular EMA. For example, if set to show a buy alert the indicator would need to have a small green dot buy signal combined with a selected fast ema being above a selected slower ema, and also combined with the price bar closing above a selected ema. If all three conditions are met and they were not previously met on the previous bar, an alert would trigger. Once triggered the alert would not trigger again until the three conditions are no longer met and then are again aligned. The most common occurance would be that following a buy signal, the dots would enter the neutral banded zone. Assuming that the moving averages have not crossed, the alert would trigger again as soon as the appropriate small green buy signal dot again occurs and price closes above the selected ema. Obviously, the same would hold true for sell signals.
The indicator would need to keep the existing option of being set to show buy signals, sell signals or both.
It is important that the ability to turn on or off the alerts be easy to get to. Currently the options are at the bottom of the input list in the indicator settings. This is ok, but would be even better if they could be at the very top of the list so that it is quick to set them when opening the indicator inputs.
The next requirement is that the when the alert function is turned on, it can be shown on the chart that the alert is turned on. A message that says buy alert active, sell alert active, or buy & sell alert active should show in a chosen corner of the chart to which it is applied.