OPEN-SOURCE SCRIPT
MAC-Z Indicator [LazyBear]
This indicator is a composite of MACD and Z-Score (requested by @ChartAt). The general idea is that counter-trend component of the Z-score is used to adjust/improve the trend component of the MACD. The advantage is that it is a more accurate and “assumption-free” and can more accurately describe how a market or stock actually works in a given time frame.
I have also added support to smooth out the MAC-Z using Laguerre filter (Thanks TheLark for the excellent LMA). Note that smoothing removes the "noise" component additive of Z-Score, so you may miss some good signals. By default Laguerre smoothing is OFF, I suggest playing with the Gamma to see if you can find a proper trade-off value.
Theme credits --> liw0
More info:
cssanalytics.wordpress.com/2010/05/11/the-relationship-between-the-macd-and-z-score-creating-the-mac-z-score/
I have also added support to smooth out the MAC-Z using Laguerre filter (Thanks TheLark for the excellent LMA). Note that smoothing removes the "noise" component additive of Z-Score, so you may miss some good signals. By default Laguerre smoothing is OFF, I suggest playing with the Gamma to see if you can find a proper trade-off value.
Theme credits --> liw0
More info:
cssanalytics.wordpress.com/2010/05/11/the-relationship-between-the-macd-and-z-score-creating-the-mac-z-score/
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
List of my free indicators: bit.ly/1LQaPK8
List of my indicators at Appstore: blog.tradingview.com/?p=970
List of my indicators at Appstore: blog.tradingview.com/?p=970
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
List of my free indicators: bit.ly/1LQaPK8
List of my indicators at Appstore: blog.tradingview.com/?p=970
List of my indicators at Appstore: blog.tradingview.com/?p=970
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.