Indicator Review: ACD_3.mq4 - Three Day Rolling Pivot

This Metatrader 4 (MT4) indicator, titled ACD_3, calculates and displays pivot levels based on a three-day rolling period. Pivot points are commonly used in forex trading and other markets to identify potential support and resistance levels. Here's a detailed review of its functionality and impact on the trading chart:

Core Purpose

The ACD_3 indicator identifies and draws pivot points along with their associated support and resistance ranges (Pivot Range Top and Pivot Range Bottom) based on a user-defined time period across three days. This provides traders with a dynamic method to assess market conditions and potential price levels for trading decisions.

Inputs

1. PivotRangeStart and PivotRangeEnd:
   Define the start and end times for the pivot range calculation.
   Example: "21:00" might signify a session close time for certain markets.

2. DisplayPivotPoint (Boolean):
   Controls whether the central pivot point line is shown on the chart.

Buffers

The indicator uses three buffers to display data on the chart:

• Buffer1: The central pivot point.
• Buffer2: The top of the pivot range.
• Buffer3: The bottom of the pivot range.

Key Functional Steps

1. Initialization (init)

• Sets up the visual styles for the pivot point and range lines:
  • Pivot Point: Green, dotted line.
  • Pivot Range Top: LimeGreen, dashed line.
  • Pivot Range Bottom: LimeGreen, dashed line.
• Links these styles to buffers for drawing on the chart.
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2. Main Calculation (start)

• Loops through historical bars to find the open and close bars for the specified PivotRangeStart and PivotRangeEnd times.
• Tracks these bars for three consecutive days to calculate the high, low, and close values used in the pivot calculations.
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3. Pivot Range Values (calculatePivotRangeValues)

• Computes the pivot range's high, low, and close values for the specified period.
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4. Drawing the Pivot Indicators (drawIndicators)

• Calculates:
  • Central Pivot Point: $$\text{Pivot Point} = \frac{\text{High} + \text{Low} + \text{Close}}{3}$$
  • Pivot Range Top and Bottom: $$\text{Pivot Diff} = \left| \frac{\text{High} + \text{Low}}{2} - \text{Pivot Point} \right| \text{Pivot Top} = \text{Pivot Point} + \text{Pivot Diff} \text{Pivot Bottom} = \text{Pivot Point} - \text{Pivot Diff}$$
• Plots these levels on the chart using the defined buffers.
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5. Comment Display

• Outputs the calculated high, low, and close values of the pivot range directly on the chart for reference.

Impact on Trading Chart

• Visual Elements:

  • Displays a central pivot point line and two range boundaries (top and bottom), which dynamically adjust based on recent price activity over the last three days.

• Trader's Use:

  • Helps identify support and resistance levels for planning trades.
  • The three-day rolling calculation makes the indicator adaptive to recent market conditions, offering a more current perspective compared to static daily pivots.

Key Notes

• Customization:
  The indicator allows traders to modify the pivot range calculation time using the PivotRangeStart and PivotRangeEnd inputs, making it adaptable to different trading sessions.

• Scalability:
  It works effectively across various instruments, including forex pairs and commodities like gold, thanks to its ability to handle varying decimal places (nDigits).

Strengths

• Dynamically adjusts based on recent market activity.
• Easy to use with customizable time inputs.
• Provides a comprehensive view of the central pivot and its associated range.

Limitations

• Performance may decrease on large data sets due to the nested loops in start.
• Does not provide entry/exit signals—only key levels for reference.

This MT4 indicator is ideal for traders who rely on pivot-based analysis to predict price movements and make strategic trading decisions in forex or other financial markets.