[blackcat] L1 MACD with Overbought and Oversold Detection

Level: 1

Background

This MACD is designed with unique oversold and overbought detections, which you may not sell or buy immedidately. You may need to watch the trend movements and decide to buy or sell on current or next goldcross and deadcross respectively.

Function

Add oversold and overbought detections for MACD to locate proper entry point.

Key Signal

diff--> MACD fast line
dea --> MACD slow line
macdhisto --> MACD histogram
overbought --> overbought signal
oversold --> oversold signal


Pros and Cons

It assits you to locate a rough zone for overbought and oversold in classic MACD indicator. Classic MACD indicator does not have this function.


Remarks

Since we cannot look into the future, so it does not inform you on exact entries but alerts of current or next cross may be a good opportunity.


Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.

Release Notes:

Adding a fix for error: "! Study Error - Pine cannot determine the referencing length of a series. Try using max_bars_back in the study or strategy function."

Release Notes:

Add input for source selection and upgraded up pine v5