Improved Moving Average Convergence/Divergence — Indicator by MightySunfish

Moving Average Convergence / Divergence (MACD) macdivergence

Simple change to the standard MACD formula I like to use that slow it down and reduces the amount of false signals while allowing strong/good signals through,

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.

Want to use this script on a chart?

study(title="Improved Moving Average Convergence/Divergence", shorttitle="Improved MACD")
source = close
fastLength = input(24, minval=1), slowLength=input(52,minval=1)
signalLength=input(9,minval=1)
fastMA = ema(source, fastLength)
slowMA = ema(source, slowLength)
macd = fastMA - slowMA
signal = sma(macd, signalLength)
hist = macd - signal
plot(hist, color=red, style=histogram)
plot(macd, color=blue)
plot(signal, color=orange)