MACD trend heatmap (by ChartArt) — Indicator by ChartArt

This is an overlay indicator which uses the classic period settings and signals from the MACD (Moving Average Convergence/Divergence) indicator to overlay a heatmap using all the information the MACD generates with its three periods (12,26,9).

The first two moving averages which the MACD uses (12 and 26) can be plotted on the chart like usual EMAs.

In addition to the background color function (the heatmap) and the EMAs, there is an optional bar color alert when the uptrend or the downtrend as measured by the MACD appears to be very strong.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

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//@version=2
study("MACD trend heatmap (by ChartArt)", shorttitle="CA_-_MACD_heat", overlay=true)

// ChartArt's MACD Trend Heatmap Overlay Indicator
//
// Version 1.0
// Idea by ChartArt on November 22, 2015.
//
// This is an overlay indicator which uses the classic 
// period settings and signals from the MACD
// (Moving Average Convergence/Divergence) indicator
// to overlay a heatmap using all the information
// the MACD generates with its three periods (12,26,9).
//
// The first two moving averages which the MACD uses
// (12 and 26) are plotted on the chart like usual EMAs.
//
// In addition to the background color (the heatmap) and
// the EMAs there is an optional bar color alert when the
// uptrend or the downtrend is very strong.
//
// List of my work: 
// https://www.tradingview.com/u/ChartArt/


// Input
fastlen = input(12, title="Fast Moving Average")
slowlen = input(26, title="Slow Moving Average")
signallen = input(9, title="Signal Line")
switch1=input(true, title="Enable Bar Color?")
switch2=input(true, title="Enable Moving Averages?")
switch3=input(true, title="Enable Heatmap?")

// Calculation
fast = ema(close,fastlen)
slow = ema(close,slowlen)
MACD = fast - slow
signal = ema(MACD, signallen)
histogr = MACD - signal

// MACD, MA colors
MACDcolor = fast > slow ? green : red
fastcolor = change(fast) > 0 ? green : red
slowcolor = change(slow) > 0 ? green : red
MACDupdowncolor = change(MACD) > 0 ? green : red

// MACD histogram colors
histogrMACDcolor = MACD > histogr ? green : red
histogrzerocolor = histogr > 0 ? green : red
histogrupdowncolor = change(histogr) > 0 ? green : red

// MACD signal line colors
signalMACDcolor = MACD > signal ? green : red
signalzerocolor = signal > 0 ? green : red
signalupdowncolor = change(signal) > 0 ? green : red

// Bar colors
MACDtrend = fast > slow and change(MACD) > 0 and histogr > 0 and change(histogr) > 0 and signal > 0 ? green : fast < slow and change(MACD) < 0 and histogr < 0 and change(histogr) < 0 and signal < 0 ? red : gray

// MA output
F=plot(switch2?fast:na,color=MACDcolor)
S=plot(switch2?slow:na,color=MACDcolor,linewidth=3)
fill(F,S,color=silver)

// Color output
bgcolor(switch3?MACDcolor:na,transp=98)
bgcolor(switch3?fastcolor:na,transp=98)
bgcolor(switch3?slowcolor:na,transp=98)
bgcolor(switch3?MACDupdowncolor:na,transp=98)
bgcolor(switch3?histogrMACDcolor:na,transp=98)
bgcolor(switch3?histogrzerocolor:na,transp=98)
bgcolor(switch3?histogrupdowncolor:na,transp=98)
bgcolor(switch3?signalMACDcolor:na,transp=98)
bgcolor(switch3?signalzerocolor:na,transp=98)
bgcolor(switch3?signalupdowncolor:na,transp=98)
barcolor(switch1?MACDtrend:na)