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Bands and Channels

Adaptive Trend CatcherAdaptive Trend Catcher is an original indicator that combines Hull Moving Average smoothing, ATR-based volatility bands, and a CCI filter within an adaptive logic framework. It’s built to react intelligently to changing market conditions rather than applying fixed parameters. The system uses hysteresis to confirm trend flips only after several consistent signals, minimizing noise and false reversals. During strong momentum bursts, it automatically tightens its internal deadzone and step size to stay responsive while maintaining stability in quieter periods. The result is a dynamic trend engine that plots a color-shifting adaptive line — green for bullish, red for bearish — that adjusts smoothly with volatility. Optional upper/lower ATR bands can be displayed for added context. How to use: Watch for confirmed trend color flips with supporting momentum. Bullish flips occur when price regains the lower band and CCI turns positive; bearish flips when price falls below the upper band and CCI turns negative. Includes alert conditions for both reversals. For educational purposes only. Not financial advice.
Pine Script® indicator
by Kerbox
ATR Regime Filter (median & P70)ATR Regime Filter (Median & P70) Purpose Filter your signals by the volatility regime. The indicator compares the current ATR to two rolling statistical thresholds—the median (P50) and the 70th percentile (P70)—to avoid trading during quiet phases and prioritize setups when the market “breathes.” How it works Computes ATR(14) on a user-defined source timeframe (srcTF) via request.security. Converts a target window in days (days) into bars of the source TF. Due to Pine limits, the effective window is capped at 5000 bars (shown in an optional label). Calculates Median (P50) and P70 of ATR over the effective window. Exposes two booleans: ATR > Median (normal-to-elevated volatility) ATR > P70 (elevated volatility) Display Plots: ATR, Median, P70. Panel background (bgcolor): light green when ATR > P70 teal when ATR > Median neutral otherwise Optional label: shows source TF, effective window size (bars & days), and the boolean states. Inputs ATR length (default 14) TF source ATR (srcTF, e.g., “1”, “5”, “15”) Target window (days) (days, default 20) Show label (bool) Suggested use Breakout/Momentum: require ATR > P70 in addition to your breakout conditions (close beyond level, volume, retest). Range/Mean reversion: at minimum require ATR > Median. In strategies, use ATR > Median/P70 as a filter alongside price structure, volume, and EMAs. Limitations On very short source TFs (e.g., 1-min), the window may be clipped to 5000 bars (~3.5 days). Increase srcTF (5m/15m) if you want a true 15–30 day history. ATR measures magnitude, not direction—combine with trend/structure signals.
Pine Script® indicator
by sperrenotcantin
Dynamic 21 SMA Zone S/R (Weekly and 2-Day)This custom indicator creates a dynamic support and resistance zone based on the 21-period Simple Moving Average (SMA) from the weekly timeframe and the 21-period SMA from the 2-day timeframe. The zone is visible and functional across all chart timeframes, adapting seamlessly to provide multi-timeframe insights. Color Logic: Green: When the current price is fully above the upper boundary of the zone, indicating potential bullish strength or a support level. Gray: When the price is fully below the lower boundary, signaling potential bearish pressure or a resistance level. Light Blue: When the price is within the zone (between the two SMAs), representing a neutral "no man's land" where the market is indecisive. As the two SMAs converge or diverge, the zone naturally thins or widens, visually reflecting changes in market momentum—such as a thinning green zone during a potential reversal. Ideal for higher-timeframe swing trading to identify key levels, this indicator is also useful on lower timeframes for gauging the relative position of these SMAs, helping traders align short-term moves with broader trends.
Pine Script® indicator
by ThomasPg
Cycle VTLs – with Scaled Channels "Cycle VTLs – with Scaled Channels" for TradingView plots Valid Trend Lines (VTLs) based on Hurst's Cyclic Theory, connecting consecutive price peaks (downward VTLs) or troughs (upward VTLs) for specific cycles. It uses up to eight Simple Moving Averages (SMAs) (default lengths: 25, 50, 100, 200, 400, 800, 1600, 1600 bars) with customizable envelope bands to detect pivots and draw VTLs, enhanced by optional parallel channels scaled to envelope widths. Key Features: Valid Trend Lines (VTLs): Upward VTLs: Connect consecutive cycle troughs, sloping upward. Downward VTLs: Connect consecutive cycle peaks, sloping downward. Hurst’s Rules: Connects consecutive cycle peaks/troughs. Must not cross price between points. Downward VTLs: No longer-cycle trough between peaks. Invalid if slope is incorrect (upward VTL not up, downward VTL not down). Expired VTLs: Historical VTLs (crossed by price) from up to three prior cycle waves. SMA Cycles: Eight customizable SMAs with envelope bands (offset × multiplier) for pivot detection. Channels: Optional parallel lines around VTLs, width set by channelFactor × envelope half-width. Pivot Detection: Fractal-based (pivotPeriod) on envelopes or price (usePriceFallback). Customization: Toggle cycles, VTLs, and channels. Adjust SMA lengths, offsets, colors, line styles, and widths. Enable centered envelopes, slope filtering, and limit stored lines (maxStoredLines). Usage in Hurst’s Cyclic TheoryAnalysis: VTLs identify cycle trends; upward VTLs suggest bullish momentum, downward VTLs bearish. Price crossing below an upward VTL confirms a peak in the next longer cycle; crossing above a downward VTL confirms a trough. Trading: Buy: Price bounces off upward VTL or breaks above downward VTL. Sell: Price rejects downward VTL or breaks below upward VTL. Use channels for support/resistance, breakouts, or stop-loss/take-profit levels. Workflow: Add indicator on TradingView. Enable desired cycles (e.g., 50-bar, 1600-bar), adjust pivotPeriod, channelFactor, and showOnlyCorrectSlope. Monitor VTL crossings and channels for trade signals. NotesOptimized for performance with line limits. Ideal for cycle-based trend analysis across markets (stocks, forex, crypto). Debug labels show pivot counts and VTL status. This indicator supports Hurst’s Cyclic Theory for trend identification and trading decisions with flexible, cycle-based VTLs and channels. Use global variable to scale to chart. best results use factors of 2 and double. try 2, 4, 8, 16...128, 256, etc until price action fits 95% in smallest cycle.
Pine Script® indicator
by surfchaser
Bull Market Support Band (20W SMA + 21W EMA)🟩 Bull Market Support Band (20W SMA + 21W EMA) OVERVIEW The Bull Market Support Band is a long-term trend indicator that combines the 20-week SMA and 21-week EMA. When price is above the band → bullish trend. When below → bearish trend. When within → neutral or transition phase. This v6 version adds full customization, dynamic coloring, event labels, candle coloring, and a configurable on-chart legend table with trend arrows. HOW IT WORKS Calculates the 20W SMA and 21W EMA from a user-selectable higher timeframe (weekly by default). Plots both averages and shades the area between them to form the support band. The fill and line colors change automatically based on the market phase:  🟩 Green = Bullish (price above)  🟥 Red = Bearish (price below)  ⬜ Gray = Neutral (price within). Labels appear only when the trend state changes. Alerts trigger when price crosses the band or either moving average. Optional candle coloring applies the same bull/bear/neutral logic to price bars. A convenience legend table displays current 20W SMA and 21W EMA values, along with slope arrows (^, v, =). INCLUDED FEATURES Configurable calculation timeframe. Automatic band fill and line coloring. Optional candle coloring overlay. Compact or detailed regime-change labels. ATR-based label offset and spacing control. Customizable legend table with background color. Horizontal or vertical legend layout. Custom arrow characters (ASCII or Unicode). Built-in alerts for band and MA crosses. Optimized for higher-timeframe accuracy using request.security(). USAGE TIPS Keep the default weekly setting for macro trend context. On lower chart timeframes, use the band as higher-level support/resistance. Combine with momentum or volume indicators (RSI, MACD, OBV) for confirmation. Adjust ATR multiplier to move labels further from price candles. Increase “Min bars between labels” to reduce visual clutter. Disable auto-coloring if you prefer a static color theme. Toggle compact legend or switch between horizontal/vertical layouts for best fit. INTERPRETATION GUIDE 🟩 Bullish: Price above the band → trend continuation likely. ⬜ Neutral: Price within the band → consolidation or potential reversal zone. 🟥 Bearish: Price below the band → downtrend continuation or distribution. Sustained closes above or below the band typically align with major market cycle shifts. NOTES Uses request.security() for higher-timeframe precision — accurate even on smaller charts. The legend table is screen-anchored and remains fixed as you pan or zoom. Plots and labels are price-anchored and move with candles. Lightweight and efficient for all markets and intervals. CREDITS Original concept: The Bull Market Support Band (popularized in crypto analysis). Enhanced Pine Script v6 version: Ricco . Modernized for clarity, flexibility, and multi-timeframe accuracy. SUMMARY A modern, customizable Bull Market Support Band indicator highlighting long-term market regimes with clean visuals, color logic, and convenience features. Designed for traders seeking macro clarity, minimal clutter, and professional presentation.
Pine Script® indicator
by RiccoNewman
Adaptive Nexus LineAdaptive Nexus Line Overview The Adaptive Nexus Line is not just another moving average. It's a next-generation, composite indicator designed to provide a comprehensive and visually intuitive baseline for trend analysis and momentum. At its core, the Adaptive Nexus Line synthesizes a "cluster" of multiple moving averages into a single, cohesive line. This "average of averages" approach reduces market noise and provides a more stable and reliable representation of the trend than a traditional, single MA. The name reflects its core strengths: "Adaptive" for its intelligent Kalman filter smoothing, and "Nexus" because it serves as a central point, bringing together a wide array of moving average types. ________________________________________ Key Features • Composite Engine: Instead of a single MA, the Adaptive Nexus Line averages a user-defined cluster of MAs (e.g., 20 MAs with lengths from 5 to 105). This significantly smooths out price action and reduces false signals. • Universal MA Selection: The engine supports a comprehensive suite of moving average types, including SMA, EMA, WMA, HMA, VWMA, RMA, ZLMA, and ZMA. • Momentum Gradient: The indicator's most unique feature is its visual momentum coloring. The line smoothly transitions from red (bearish momentum) through yellow (neutral/indecision) to green (bullish momentum) based on the real-time ratio of rising vs. falling MAs within the cluster. • Change-Point Signals: A white dot is plotted at the very start of a color change, and a yellow dot is plotted at the end, providing clear signals of potential shifts in momentum. • Multi-Timeframe (MTF) Support: View the Adaptive Nexus Line from any timeframe directly on your current chart (e.g., plot the 4H line on a 15m chart) to get a better perspective of the higher-level trend. • Adaptive Kalman Filter: An optional, switchable Kalman filter is included to provide an additional layer of intelligent, adaptive smoothing to the final output line. Its sensitivity is fully adjustable. ________________________________________ Settings Explained • Moving Average Settings: Control the core engine. Choose your preferred MA Type, the Number of MAs in the cluster, the Start Length, and the Step between lengths. • Time Frame: Set the indicator to a higher timeframe for a broader market view. Leave blank to use your chart's current timeframe. • Kalman Filter Settings: Toggle the Use Kalman Filter on or off. Adjust the Kalman Smoothing Period (higher = smoother) to fine-tune the adaptive smoothing to your preference.
Pine Script® indicator
by arun_mhetre
BMSB Watchlist Alert - Daily w/ 1% Proximity# Bull Market Support Band - Daily Updates with Proximity Alerts ## Overview This indicator tracks the Bull Market Support Band (20-week SMA and 21-week EMA) with daily resolution updates and proximity warnings. The weekly moving averages update every day on your chart, giving you more frequent signals than traditional weekly-only scripts. ## What It Does The script monitors price action relative to the BMSB and generates alerts for: - Price crossing above or below either the 20W SMA or 21W EMA - Price coming within 1% of either moving average (early warning system) This proximity feature is useful for catching potential support/resistance tests before they actually happen, giving you advance notice to prepare for entries or exits. ## Key Features - Weekly MAs that update daily for more responsive monitoring - Configurable proximity threshold (default 1%, adjustable from 0.1% to 5%) - Visual proximity zones shown as dotted lines around each MA - Color-coded background highlighting (green when above both MAs, red when below both, orange when in proximity zone) - On-chart labels for crosses and proximity warnings - Status table showing current position relative to the band ## Setup for Watchlist Alerts 1. Add the indicator to any chart 2. Create alerts using these conditions: - "BMSB Cross Alert" - fires on actual crosses - "BMSB Proximity Alert" - fires when entering the 1% zone 3. Set interval to 1 day (recommended) or 4 hour for more frequent checks 4. Use "Once Per Bar Close" for the trigger option 5. Apply the same alert to your entire watchlist ## Settings You can toggle on/off: - Cross above alerts - Cross below alerts - Proximity alerts - Proximity percentage adjustment - Visual elements (labels, MA lines, proximity zones) ## Notes The BMSB is commonly used in crypto markets to identify bull market pullback support levels. This implementation adds the proximity warning system to help you anticipate potential tests of these key levels rather than waiting for confirmed crosses. Works on any timeframe but designed for daily monitoring of weekly moving averages.
Pine Script® indicator
by N1c4
Arithmetic Candles with Pivot Trend Signals📘 Script Description 🕯️ Arithmetic Candles Instead of using traditional candlesticks, this script calculates: Arithmetic Open = Average of open and close Arithmetic Close = Average of high and low This candle provides a smoother, more averaged-out representation of price action. Benefit: Filters out noise and reveals a more "true" price midpoint per candle. 🧭 Pivot Point Levels (Classic) Classic pivot levels are calculated using the previous day's values: Pivot (P) = (High + Low + Close) / 3 R1 / S1: First resistance/support levels R2 / S2: Extended resistance/support levels These lines mark key price levels that often act as support or resistance. 📈 Trend Signals The script generates trend signals when a selected price source crosses above or below the pivot: Bullish Signal (green arrow): When price crosses above the pivot Bearish Signal (red arrow): When price crosses below the pivot You can choose the signal source: Either the regular close price Or the Arithmetic Candle midpoint: (arithOpen + arithClose) / 2 🎨 Visual Representation Candles are colored green when arithClose > arithOpen, otherwise red Pivot lines are drawn if enabled Triangles mark trend change signals (bullish or bearish) ✅ Use Case In sideways markets, Arithmetic Candles help filter out noise Pivot Levels provide clear price zones for potential breakouts or reversals
Pine Script® indicator
by daninr_1
Bull Market Support Band Alert (20W SMA & 21W EMA) - Multi-Alert═══════════════════════════════════════════════════════════════════ 🎯 WHAT THIS INDICATOR DOES: ═══════════════════════════════════════════════════════════════════ This indicator monitors the Bull Market Support Band (BMSB) - a popular trend-following system that uses the 20-week Simple Moving Average (SMA) and 21-week Exponential Moving Average (EMA) to identify major market trends. It alerts you when price crosses either moving average on any stock in your watchlist. ═══════════════════════════════════════════════════════════════════ 📈 THE BULL MARKET SUPPORT BAND STRATEGY: ═══════════════════════════════════════════════════════════════════ - ABOVE both MAs = Bullish trend (consider holding/buying) - BELOW both MAs = Bearish trend (consider caution/selling) - CROSSING ABOVE = Potential trend change to bullish - CROSSING BELOW = Potential trend change to bearish Originally popularized by cryptocurrency analysts, the BMSB has proven effective across all markets for identifying major trend changes. ═══════════════════════════════════════════════════════════════════ ⚡ KEY FEATURES: ═══════════════════════════════════════════════════════════════════ ✅ Single alert monitors your ENTIRE watchlist ✅ Works on ANY timeframe (daily, 4H, 1H) while maintaining weekly MA accuracy ✅ Visual signals when crosses occur (green/red arrows) ✅ Real-time status table showing current values ✅ Background coloring for quick trend identification ✅ Customizable alert settings for crosses above/below ═══════════════════════════════════════════════════════════════════ 🔔 HOW TO SET UP ALERTS: ═══════════════════════════════════════════════════════════════════ 1. Add this indicator to your chart 2. Click Alert (alarm icon) 3. Select "BMSB Watchlist Alert" → "BMSB Cross Alert" 4. Choose your alert frequency: • "Once Per Bar" = Immediate alerts (for active traders) • "Once Per Bar Close" = Confirmed signals (fewer false alarms) 5. CHECK "Apply to all symbols in watchlist" ← IMPORTANT! 6. Select your watchlist and create ═══════════════════════════════════════════════════════════════════ ⚙️ RECOMMENDED SETTINGS: ═══════════════════════════════════════════════════════════════════ 📍 FOR SWING TRADERS: - Chart: Daily timeframe - Alert Trigger: Once Per Bar Close - Both crosses enabled 📍 FOR ACTIVE TRADERS: - Chart: 4H or Daily timeframe - Alert Trigger: Once Per Bar - Both crosses enabled 📍 FOR LONG-TERM INVESTORS: - Chart: Weekly timeframe - Alert Trigger: Once Per Bar Close - Focus on crosses above ═══════════════════════════════════════════════════════════════════ 📊 VISUAL ELEMENTS: ═══════════════════════════════════════════════════════════════════ - BLUE LINE = 20-week Simple Moving Average - RED LINE = 21-week Exponential Moving Average - GREEN ARROWS = Price crossed above BMSB - RED ARROWS = Price crossed below BMSB - GREEN BACKGROUND = Price above both MAs (bullish) - RED BACKGROUND = Price below both MAs (bearish) - STATUS TABLE = Current price position and MA values ═══════════════════════════════════════════════════════════════════ 💡 PRO TIPS: ═══════════════════════════════════════════════════════════════════ 1. The indicator calculates WEEKLY MAs regardless of your chart timeframe 2. Best used with liquid stocks/cryptos with good volume 3. Consider waiting for daily/weekly close for confirmation 4. Crosses are more significant after extended periods above/below 5. Works great with additional confirmation (volume, RSI, etc.) ═══════════════════════════════════════════════════════════════════ ⚠️ IMPORTANT NOTES: ═══════════════════════════════════════════════════════════════════ - FREE accounts limited to 1 active alert - Alerts check based on YOUR selected timeframe, not the weekly MA calculation - False signals possible during ranging/choppy markets - Not financial advice - use as one tool among many ═══════════════════════════════════════════════════════════════════ 👨‍💻 AUTHOR'S NOTE: ═══════════════════════════════════════════════════════════════════ Built for traders who want to monitor multiple stocks efficiently without creating dozens of individual alerts. Perfect for identifying major trend changes across your entire portfolio with a single alert. Tags: #BMSB #BullMarketSupportBand #20WeekSMA #21WeekEMA #TrendFollowing #MovingAverage #WatchlistAlert #MultiTimeframe #SwingTrading #TrendTrading
Pine Script® indicator
by N1c4
Donchian Channels + Avg Width % DashboardMeasures the average percentage width between the Donchian Channel’s upper and lower bands over a chosen period. It quantifies how much the market has been moving relative to price — a direct gauge of realized volatility. When the average width is small, price is range-bound and unlikely to reach fixed TP targets; when it expands, volatility is sufficient for trend or breakout trades. Based on how fast your strategy is, set your TP% below the average percentage of the Band Width.
Pine Script® indicator
by mehrdaddxgpem
Session Breakout Detector (SBD)Overview: The Session Breakout Detector (SBD) is a TradingView indicator designed to identify and visualize breakouts from major trading sessions. It tracks a selected session (Tokyo, London, or New York) and detects price movements beyond the session's high or low, assisting traders in spotting potential breakout opportunities. Key Features: - Session Selection: Choose between Tokyo, London, or New York sessions. - Breakout Detection Modes: - Confirmed Bar: Detects breakouts when a candle closes beyond the session's range. - Intrabar: Detects breakouts as soon as the price exceeds the session's high or low within a candle. - Visual Indicators: - Displays session high, low, and range with a colored box for clear visualization. - Marks breakouts with green (bullish) or red (bearish) triangles. - Optional 50-Period SMA: Adds a 50-period Simple Moving Average to the chart for trend analysis. - Alerts: Configurable alerts for bullish and bearish breakouts. Usage Instructions: 1. Select Session: Choose the desired trading session (Tokyo, London, or New York) from the input settings. 2. Choose Breakout Detection Mode: Select between 'By confirmed bar' or 'By intrabars' based on your trading preference. 3. Enable SMA (Optional): Toggle the 'Use SMA?' option to display the 50-period Simple Moving Average. 4. Set Alerts: Configure alerts for breakout signals as per your trading strategy. ⚠️Note: This indicator is intended for informational purposes only and should not be construed as financial advice. Users are encouraged to conduct their own research and consider their individual risk tolerance before making trading decisions.
Pine Script® indicator
by TheWaveHunter
Camarilla Pivots + 20 EMA StrategyThis is an intraday volatility and trend-following system for commodities like Natural Gas, combining dynamic pivot levels (Camarilla) with a trend filter (20-period EMA) to improve risk-reward and reduce false breakouts. Core Components 1. Camarilla Pivots: These are special support and resistance levels (H3, H4, L3, L4) calculated each day based on the previous day's high, low, and close. The pivots adapt to daily volatility, giving more relevant breakout and bounce zones than static lines. H4: Aggressive resistance (used for breakout LONG entry) H3: Moderate resistance/support (used for bounce or stoploss) L4: Aggressive support (used for breakout SHORT entry) L3: Moderate support/resistance (used for bounce or stoploss) 2. 20 EMA (Exponential Moving Average): Plotted on the 30-minute chart, this acts as a trend filter. If the price is above 20 EMA: Only look for long trades (bullish bias). If below 20 EMA: Only look for short trades (bearish bias). How the Strategy Works Setup (30-Min Chart): Camarilla pivots for the day are drawn on the chart. 20 EMA is also plotted. Trade Filter: Bullish: Trade ONLY if price is above 20 EMA. Bearish: Trade ONLY if price is below 20 EMA. Entry: LONG: Enter when price breaks and closes above the H4 pivot AND is above 20 EMA. SHORT: Enter when price breaks and closes below the L4 pivot AND is below 20 EMA. Stop Loss: LONG: Place stoploss at H3 (the next lower Camarilla resistance). SHORT: Place stoploss at L3 (the next higher Camarilla support). Target: Always set a profit target at 2x the distance (risk) between entry and stoploss (strict R:R 2). For example, if your entry is at H4 and stoploss at H3, your target is entry + 2*(entry - stoploss). Alerts & Visuals: The strategy plots entry arrows, stoploss and target lines for immediate visual reference. Alerts trigger on breakout signals so you never miss a trade. Why This Works Well for Natural Gas Adapts to volatility: The pivots change daily, handling wide-ranging and choppy price moves better than fixed breakouts. Trend filter: EMA prevents counter-trend whipsaws, only trades with market momentum. Risk control: Every trade must meet strict risk-reward criteria, so losses are contained and winners can outweigh losers.
Pine Script® strategy
by vinaygaur97
LA - MACD EMA BandsOverview of the "LA - MACD EMA Bands" Indicator For Better view, use this indicator along with "LA - EMA Bands with MTF Dashboard" The "LA - MACD EMA Bands" is a custom technical indicator written in Pine Script v6 for TradingView. It builds on the traditional Moving Average Convergence Divergence (MACD) oscillator by incorporating additional smoothing via Exponential Moving Averages (EMAs) and Bollinger Bands (BB) applied directly to the MACD line. This creates a multi-layered momentum and volatility tool displayed in a separate pane below the price chart (not overlaid on the price itself). The indicator allows for customization, such as selecting a different timeframe (for multi-timeframe analysis) and adjusting period lengths. It fetches data from the specified timeframe using request.security with lookahead enabled to avoid repainting issues. The core idea is to provide insights into momentum trends, crossovers, and volatility expansions/contractions in the MACD's behavior, making it suitable for identifying potential trend reversals, continuations, or ranging markets. Unlike a standard MACD, which focuses primarily on momentum via a single line, signal line, and histogram, this version emphasizes longer-term smoothing and volatility boundaries. It uses visual fills between lines to highlight bullish/bearish conditions, aiding quick interpretation. Below, I'll break down each component, its calculation, visual representation, and practical uses. Detailed Breakdown of Each Component and Its Uses MACD Line (Blue Line, Labeled 'MACD Line') Calculation: This is the core MACD value, computed as the difference between a fast EMA (default length 12) and a slow EMA (default length 144) of the input source (default: close price). The EMAs are calculated on data from the selected timeframe. Visuals: Plotted as a solid blue line. Uses: Measures momentum: When above zero, it indicates bullish momentum (prices rising faster in the short term); below zero, bearish momentum. Trend identification: Rising MACD suggests strengthening uptrends; falling suggests downtrends. Divergence spotting: Compare with price action—e.g., if price makes higher highs but MACD makes lower highs, it signals potential bearish reversal (and vice versa for bullish divergence). In trading: Often used for entry/exit signals when crossing the zero line or other lines in the indicator. MACD EMA (Red Line, Labeled 'MACD EMA') Calculation: A 12-period EMA applied to the MACD Line itself. Visuals: Plotted as a solid red line. Uses: Acts as a signal line for the MACD, smoothing out short-term noise. Crossover signals: When the MACD Line crosses above the MACD EMA, it can signal a bullish buy opportunity; crossing below suggests a bearish sell. Trend confirmation: Helps filter false signals in choppy markets by requiring confirmation from this slower-moving average. In trading: Useful for momentum-based strategies, like entering trades on crossovers in alignment with the overall trend. Fill Between MACD Line and MACD EMA (Green/Red Shaded Area, Titled 'MACD Fill') Calculation: The area between the MACD Line and MACD EMA is filled with color based on their relative positions. Color Logic: Green (with 57% transparency) if MACD Line > MACD EMA (bullish); red if MACD Line < MACD EMA (bearish). Visuals: Semi-transparent fill for easy visibility without overwhelming the lines. Uses: Quick visual cue for momentum shifts: Green areas highlight bullish phases; red for bearish. Enhances readability: Makes crossovers more apparent at a glance, especially in fast-moving markets. In trading: Can be used to time entries/exits or as a filter (e.g., only take long trades in green zones). Bollinger Bands on MACD (BB Upper: Black Dotted, BB Basis: Maroon Dotted, BB Lower: Black Dotted) Calculation: Bollinger Bands applied to the MACD Line. BB Basis: 144-period EMA of the MACD Line. BB Standard Deviation: 144-period stdev of the MACD Line. BB Upper: BB Basis + (2.0 * BB Stdev) BB Lower: BB Basis - (2.0 * BB Stdev) Visuals: Upper and lower bands as black dotted lines; basis as maroon dotted Uses: Volatility measurement: Bands expand during high momentum volatility (strong trends) and contract during low volatility (ranging or consolidation). Mean reversion: When MACD Line touches or exceeds the upper band, it may signal overbought conditions (potential sell); lower band for oversold (potential buy). Squeeze detection: Narrow bands (squeeze) often precede big moves—watch for breakouts. In trading: Combines momentum with volatility; e.g., a MACD Line breakout above the upper band could confirm a strong uptrend. BB Basis EMA (Green Line, Labeled 'BB Basis EMA') Calculation: A 72-period EMA applied to the BB Basis (which is already a 144-period EMA of the MACD Line). Visuals: Solid green line. Uses: Further smoothing: Provides a longer-term view of the MACD's average behavior, reducing noise from the BB Basis. Trend direction: Acts as a baseline for the BB system—above it suggests bullish bias in momentum volatility; below, bearish. Crossover with BB Basis: Can signal shifts in volatility trends (e.g., BB Basis crossing above BB Basis EMA indicates increasing bullish volatility). In trading: Useful for confirming longer-term trends or as a filter for BB-based signals. Fill Between BB Basis and BB Basis EMA (Gray Shaded Area, Titled 'BB Basis Fill') Calculation: The area between BB Basis and BB Basis EMA is filled. Color Logic: Currently set to a constant semi-transparent gray regardless of position. Visuals: Semi-transparent gray fill. Uses: Highlights divergence: Shows when the shorter-term BB Basis deviates from its longer-term EMA, indicating potential volatility shifts. Visual aid for crossovers: Makes it easier to spot when BB Basis crosses its EMA. In trading: Could be used to identify overextensions in volatility (e.g., wide gray areas might signal impending mean reversion). Zero Line (Black Horizontal Line) Calculation: A simple horizontal line at y=0. Visuals: Solid black line. Uses: Reference point: Divides bullish (above) from bearish (below) territory for all MACD-related lines. In trading: Crossovers of the zero line by the MACD Line or BB Basis can signal major trend changes. How It Differs from a Normal MACD A standard MACD (e.g., the built-in TradingView MACD with defaults 12/26/9) consists of: MACD Line: EMA(12) - EMA(26). Signal Line: EMA(MACD Line, 9). Histogram: MACD Line - Signal Line (bars showing convergence/divergence). Key differences in "LA - MACD EMA Bands": Periods: Uses a much longer slow EMA (144 vs. 26), making it more sensitive to long-term trends but less reactive to short-term price action. The MACD EMA is 12 periods (vs. 9), further emphasizing smoothing. No Histogram: Replaces the histogram with fills and bands for visual emphasis on crossovers and volatility. Added Bollinger Bands: Applies BB directly to the MACD Line (with a long 144-period basis), introducing volatility analysis absent in standard MACD. This helps detect "squeezes" or expansions in momentum. Additional EMA Layer: The BB Basis EMA (72-period) adds a secondary smoothing level to the BB system, providing a hierarchical view of momentum (short-term MACD → mid-term BB → long-term EMA). Multi-Timeframe Support: Built-in option for higher timeframes, unlike basic MACD. Focus: Standard MACD is purely momentum-focused; this version integrates volatility (via BB) and multi-layer smoothing, making it better for trend-following in volatile markets but potentially overwhelming for beginners. Overall, this indicator transforms the MACD from a simple oscillator into a comprehensive momentum-volatility hybrid, reducing false signals in trending markets but introducing lag. Overall Pros and Cons Pros: Enhanced Visualization: Fills and bands make trends, crossovers, and volatility easier to spot without needing multiple indicators. Reduced Noise: Longer periods (144, 72) smooth out whipsaws, ideal for swing or position trading in trending assets like stocks or forex. Volatility Integration: BB adds a dimension not in standard MACD, helping identify breakouts or consolidations. Customizable: Inputs for timeframes and lengths allow adaptation to different assets/timeframes. Multi-Layered Insights: Combines short-term signals (MACD crossovers) with long-term confirmation (BB EMA), improving signal reliability. Cons: Lagging Nature: Long periods (e.g., 144) delay signals, missing early entries in fast markets or leading to late exits. Complexity: Multiple lines and fills can clutter the pane, requiring experience to interpret; beginners might misread it. Potential Overfitting: Custom periods (12/144/12/144/72) may work well on historical data but underperform in live trading without backtesting. No Built-in Alerts/Signals: Relies on visual interpretation; users must manually set alerts for crossovers. Resource Intensive: On lower timeframes or with lookahead, it might slow chart loading on Trading View. This indicator shines in strategies combining momentum and volatility, like trend-following with BB squeezes, but test it on your assets (e.g., via backtesting) to ensure it fits your style. For Better view, use this indicator along with "LA - EMA Bands with MTF Dashboard"
Pine Script® indicator
by aravindleo_99