Not sure if a similar indicator already exist, so I created my own. After creating this indicator, I realize it looks very similar to MACD. However, it strictly uses Hull moving average in its calculation for the lines. MAROC is simply Moving Average Rate of Change. This is a trend-following indicator that calculates the rate of change on two Hull moving averages. By default it calculates the ROC on 60-period HMA (green and red) and 180-period HMA (blue and orange). The zero line represents the confirmation of change in trend. Above zero is up trend and below zero is down trend. Note the difference between the "trend reversal" and the "confirmation of a trend". I like to define trend reversal by the change in direction
The colored squares on the zero line has 4 colors that represents the overall trend. Here I include the slowdown of MAROC as the start of a trend. - bright green = when both the slow and fast MA are trending up - faded green = when slow MA trending up, but fast MA trending down - faded red = when slow MA trending down, but fast MA trending up - bright red = when both the slow MA and fast MA are trending down
Trend changes triangles are shown to signal the change in trend direction (trend reversal). Green and blue triangles are trend reversal to the upside. Red and orange triangles are trend reversal to the downside.
This indicator includes the option of displaying buy(long) and sell(short) signals that follows these rules. Use at your own discretion, as it may not apply well with your market or ticker. - Long = Bright green square and either fast or slow MAROC changes trend direction to the upside - Short = Bright red square and either fast or slow MAROC changes trend direction to the downside
Enjoy~! Please let me know if you find this useful and which market / ticker and timeframe you are using it on~ :)
Release Notes
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Added option (new default) to change coloring scheme. Option 1 (new default) - green/blue when trend is starting to reverse up - red/orange when trend is starting to reverse down Option 2 - green/blue when uptrend is confirmed (ROC > 0) - red/orange when downtrend is confirmed (ROC < 0)
@RedKTrader, Thanks~! check out my other ideas and strategies~ i've added a few since this one
pocketdiary10000
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Please advice on index options trading the setting part in 5 minutes chart … if you researched a lot …. Otherwise it looks fine for entry and exit …. But best setting will make more timely entry or exit … now I am watching this setting is giving entry one candle late in entry or exit that eats money on 5 minute chart … but it is good if confluence happens for safe entry with other indicator along with and price action and support resistance…. Thanks a lot … you have made… it shows that you are mature trader and working good in the market …tomorrow I will implement and let’s see what will happen …
PtGambler
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@mmr2rchdgj, Thanks for your comments. But I am wondering if this comment is meant for another one of my strategies?
pocketdiary10000
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@PtGambler, please explain faded green and faded red … you wrote slow ma is trending up and fast ma is slowing down or slow ma is slowing down and fast ma is trending up in faded red ….. what you mean and effect in chart …. Anything you want to explain into this ….that May I am not seeing or understanding to use it the logic behind this …. Because I simply today watching during market the triangle formation and then Wait for entry into long and short when came signal showed with bright green or bright red square … But but but green square was forming while candle was forming red on the chart not every time but it was disconnecting the match, mean candle forming green and square forming still red two three in a row … he he he … But I know everyone will be millionaire if everything in indicator will be 100 percent accurate…. I saved myself because later market change into my direction and I feel relax … Please elaborate if possible in you tube all aspects that you have in mind while making this indicator. Am using with three supertrend with cpr and pivots and 13 ema , 5 ema
PtGambler
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@mmr2rchdgj, this indicator isn't meant to be a strategy by itself. For any strategy, it is best to get confluences from multiple indicators for your entry/exit signals. ie. solid green on this indicator doesn't necessarily mean entry for long, it only shows that there is some sort of confirmation that the market is bullish. HOWEVER, keep in mind that with any moving average indicators, they are LAGGING indicators, which means they will react numbers of candles behind the current bar.
Regarding the faded colors, what it means is that the price action is slowing down in the current direction and maybe a reversal will follow. With regular moving average lines, sometimes it is difficult to see this visually. This MAROC is basically a derivative of the moving average line (if you understand calculus).
Hope this helps~ good luck with your trading :)
pocketdiary10000
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@PtGambler, Thanks for making me understand that faded means current trend is slowing down and preparing for reversal and correctly said that regular moving average lines may not visually we see it comfortably …. correctly said confluences ….. thanks for reply my dear …. Trying to change the best numbers of HMA 7 and 8 are not working on Indian nifty and bank nifty indices … fast ma is concerned… yours number are much ok than this number on the chart ….in 5 minutes timeframe in options intraday trading . I want to hear if you have any advice apart from 60 , 180 in 5 minutes timeframe . Let’s see what I find that dark square and opposite candle colour in few of bars what I looked today …. By changing numbers it may possible that it recovers … I will try into this …. +80 and - 80 I forget to ask …. Should I see this level too for decision for entry apart from triangle and signal .
PtGambler
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@mmr2rchdgj, unfortunately, there is no magic numbers for the parameters that will work for every ticker. You will have to play around with those to find significance out of the different signals you get. 60/180 on 5 min should highlight trend reversals on most tickers in a reasonably timely fashion. +/-80 level are arbitrary levels that I picked to indicate possible overbought / oversold areas.
Best way to know if the parameters work for you is through back testing~ good luck
IB78
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Hi, is the indicator also supposed to show trend changing lines on the candlestick chart as shown on the screenshot?
PtGambler
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@IB78, sorry for the late reply. No, that is the CS Hull Suite by another author.