This technical indicator is an attempt to find the good momentum of trend : is it actually trending or in a range market?

Interestingly, it follows that π is not only the ratio between the length of a circle to its diameter, it is also a constant rather appears in statistics and, oddly enough, in the relationship between the distance between a price oscillation and a straight line.

• If the signal / noise ratio is less than or equal to 1/2 π, we will be in a trading range or range.
• If the signal / noise ratio is greater than 1/2 π, we are in a trending market.

Code converted from the Metatrader4 version, by request on Spanish forums.

Description from x-trader.net website.

//PRC_SignalToNoiseRatio | indicator
//21.12.2016
//Nicolas @ www.prorealcode.com
//Sharing ProRealTime knowledge
//Converted from MT4 version

// --- parameter
MyLookBackShift = 14
// ---------------

MyClose = Close

LookBackShift = MyClose[MyLookBackShift]

AbsCh = Abs(MyClose - MyClose[1])
MyDistance = Abs(MyClose-LookBackShift)

MyB = 0
for y = 0 to MyLookBackShift + 1 do
 MyB = MyB + AbsCh[y]
next
MyWalk = MyB

MyDTWRatio = MyDistance/MyWalk

MyPiRatio = 1/3.14159265358979/2

Buf0 = MyDTWRatio
Buf1 = MyPiRatio

return Buf0 as "signal to noise ratio",Buf1 as "signal to noise level"