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Digital MACD Divergences MTF [LUPEN]Digital MACD Divergences MTF V1.0 Overview: Digital MACD Divergences MTF is an advanced momentum oscillator based on digital signal processing techniques. Instead of relying on traditional moving-average smoothing, it applies Finite Impulse Response (FIR) digital filters to extract momentum more cleanly, reducing lag and short-term market noise. The indicator is designed to provide a clear visualization of momentum structure, divergence behavior, and multi-timeframe context, rather than discrete trading signals. Conceptual Architecture At its core, the indicator reinterprets the classic MACD framework through digital convolution logic: FIR filters are used to compute momentum in a more responsive and stable manner than standard EMA-based MACD. The resulting histogram represents momentum intensity and direction as a continuous state rather than binary conditions. A digitally smoothed signal line provides structural reference without introducing excessive delay. This approach emphasizes momentum quality and structure, not signal frequency. Divergence Detection Logic: The script includes automatic divergence detection based on pivot analysis: Regular bullish and bearish divergences are identified using confirmed pivot points. Divergences are visualized with explicit line structures and optional filled areas, highlighting the zone of disagreement between price behavior and momentum. The visualization is designed to remain readable without obscuring price action. Divergences are presented as contextual information, not as mandatory actions. Multi-Timeframe (MTF) Context Digital MACD Divergences MTF supports native multi-timeframe analysis through a dual-pane workflow: A lower-timeframe instance visualizes local momentum dynamics. A higher-timeframe instance visualizes the broader momentum regime within which lower-timeframe fluctuations occur. The higher-timeframe view is not intended as confirmation or filtering logic, but as a contextual background layer that helps interpret short-term momentum behavior inside a larger structural environment. This separation avoids decision compression and keeps each timeframe’s role conceptually distinct. Visual Design Gradient-based histogram fills represent momentum intensity in a continuous manner. Positive and negative momentum regions are clearly differentiated while remaining adaptable to both dark and light chart themes. All visual elements are designed to emphasize state and regime, not discrete events. Reliability No repainting: all divergences and momentum states are confirmed on candle close and remain fixed. Designed for consistency across instruments and timeframes. Customization Options Timeframe selection for MTF mode (leave empty to use the chart’s timeframe). Adjustable signal smoothing parameters. Divergence visibility controls, pivot sensitivity, and optional divergence fill. Fully customizable color palette. Usage Notes This indicator is a visual market analysis tool intended to support momentum interpretation and structural context. It does not provide investment advice, trading signals, or automated decision logic, and should be used as part of a broader analytical framework. Final quotes: "Trading is not about prediction, but about understanding momentum structure. Digital MACD removes noise to make that structure visible."
Pine Script® indicator
by Horazio
MACD Fake Filter [RH]Introducing a new indicator for the TradingView community based on the MACD indicator! This innovative tool goes beyond traditional MACD signals by analyzing positive and negative waves to determine the average height of the waves to filter false cross-over or cross-under signals during the sideways market. There are two types of waves created by the MACD line, one is a positive wave above the "zero" line and another is a negative wave below "zero" line. Each wave has peaks. This indicator will find the average height of the positive waves' peaks and plot as a green line(by default). Vice-versa it will also find the average height of the negative waves' peaks and plot as a red line(by default). Example : This indicator will show labels when the MACD line crosses-under the MACD signal line above the average height of the positive waves. Vice-versa, the indicator will show labels when the MACD line crosses-above the MACD signal line below the average height of the negative waves. Example: Alerts are also available for these types of cross-over and cross-under.
Pine Script® indicator
by HasanRifat
28
Double MACD Pattern 1.0This script is designed to assist traders in identifying potential trading signals and trends based on the MACD indicator. Users can adjust the input parameters to fine-tune the indicator to their trading preferences. When specific conditions are met, alerts are generated to notify the user of potential trading opportunities. Indicator Description: The script defines a custom indicator that calculates and plots two sets of Moving Average Convergence Divergence (MACD) lines along with their signal lines. It allows users to configure various parameters for MACD calculation, such as fast and slow lengths for both MACD 1 and MACD 2, as well as signal lengths for both. Plotting: The script plots the MACD lines and signal lines for both MACD 1 and MACD 2 on the chart with different colors and line styles. It also plots a middle line at zero for reference. Alerts: The script defines conditions for generating alerts based on MACD crossover and crossunder events for both MACD 1 and MACD 2. Alerts are generated for the following scenarios: A long signal is generated when MACD 1 crosses under its signal line while MACD 2 crosses over its signal line. A short signal is generated when MACD 1 crosses over its signal line while MACD 2 crosses under its signal line. An up trend signal is generated when MACD 2 crosses over MACD 1. A down trend signal is generated when MACD 1 crosses over MACD 2. Alerts are included in the script to notify users of these specific trading signals. Please note that this script is meant for educational purposes and should be used cautiously in a real trading environment. It's important to have a thorough understanding of technical analysis and risk management when using such indicators in actual trading.
Pine Script® indicator
by egghen
4
MACD crossover while RSI Oversold/OverboughtThis indicator draws signals on the chart when a Bullish MACD Crossover occurs at the same time RSI is "oversold", and also when Bearish MACD Crossover occurs at the same time RSI is "overbought" Indicators are drawn on the chart in the following scenarios: 1. Bullish signal a. MACD bullish crossover occurs on a single bar b. RSI was below the Oversold threshold (29 by default) within the prior 5 bars 2. Bearish signal a. MACD bearish crossover occurs on a singnle bar b. RSI was above the Overbought threshold (71 by default) within the prior 5 bars
Pine Script® indicator
by ericsolan
20
MACD PRO by LDZ1LANDZZ1 MACD Pro was developed to show the first signs of reversal, direction, and also trend strength. Unlike normal MACD, this indicator has 3 lines as information. A white line (short EMA), a purple line (sign), and a yellow line (long EMA). The Purple Line "Signal" is a 17-period Exponential Moving Average. The White Line "Short EMA" is a 34-period Exponential Moving Average. The Yellow Line "Long EMA" is a 72-Period Exponential Moving Average. When the background color turns green it indicates that we are above 0 (positive trend) and above the Signal line (positive trend) When the background color turns Yellow it indicates that we are above 0 (positive trend) but below the Signal line (Indicating Attention to a possible trend reversal or price correction) When the background color turns Red it indicates that we are below 0 (negative trend) and below the Signal line (negative trend) When the background color turns Orange it indicates that we are below 0 (negative trend) and above the signal line (Indicating attention to a possible trend reversal or price correction) The Yellow line is like a watershed, when the White Line "Short EMA" crosses above or below it, it indicates that a stronger price movement may occur. Tip: Only enter Long Positions when the background color turns green and the Short EMA (White line) is above the yellow line and/or the white dotted horizontal line. Only enter Short Positions when the background color turns red and the Long EMA (Yellow line) is below the white dotted horizontal line. Note the difference of MACD Pro by LANDZZ1 as the traditional MACD. ---------------------------------------------------------- Description in Portuguese-BR MACD Pro by LANDZZ1 foi desenvolvido para mostrar os primeiros sinais de reversão, direção e também força da tendência. Diferente do MACD normal, este indicador tem como informação 3 linhas. Uma linha branca (short EMA), uma linha roxa(signal) e uma linha amarela (long EMA). A Linha Roxa "Signal" é uma Média Móvel Exponencial de 17 períodos. A Linha branca "Short EMA" é uma Média Móvel Exponencial de 34 períodos. A Linha Amarela "Long EMA" é uma Média Móvel Exponencial de 72 Períodos. Quando a cor de fundo ficar verde indica que estamos acima de 0 (tendência positiva) e acima da linha de Sinal (tendência positiva) Quando a cor de fundo ficar Amarelo indica que estamos acima de 0 (tendência positiva) porém abaixo da linha de Sinal (Indicando Atenção a uma possível reversão de tendência ou correção de preço) Quando a cor de fundo ficar vermelho indica que estamos abaixo de 0 (tendência negativa) e abaixo da linha de Sinal (tendência negativa) Quando a cor de fundo ficar laranja indica que estamos abaixo de 0 (tendência negativa) e acima da linha de sinal (Indicando atenção a uma possível reversão de tendência ou correção do preço) A linha amarela é como um divisor de águas, quando a linha branca (Short EMA) cruza para cima ou para baixo dela, indica que um movimento mais forte forte de preço poderá ocorrer. Dica: Apenas entre em Long Positions quando a cor de fundo ficar verde e se a Short EMA (linha Branca) estiver acima da linha amarela e/ou da linha horizontal pontilhada branca. Apenas entre em Short Positions quando a cor de fundo ficar Vermelha e se a Long EMA (linha Amarela) estiver abaixo da linha horizontal pontilhada branca. Repare a diferença do MACD Pro by LANDZZ1 como o MACD tradicional.
Pine Script® indicator
by landzz1
4
MAMA-MACD [DCAUT]█ MAMA-MACD 📊 ORIGINALITY & INNOVATION The MAMA-MACD represents an important advancement over traditional MACD implementations by replacing the fixed exponential moving averages with Mesa Adaptive Moving Average (MAMA) and Following Adaptive Moving Average (FAMA). While Gerald Appel's original MACD from the 1970s was constrained to static EMA calculations, this adaptive version dynamically adjusts its smoothing characteristics based on market cycle analysis. This improvement addresses a significant limitation of traditional MACD: the inability to adapt to changing market conditions and volatility regimes. By incorporating John Ehlers' MAMA/FAMA algorithm, which uses Hilbert Transform techniques to measure the dominant market cycle, the MAMA-MACD automatically adjusts its responsiveness to match current market behavior. This creates a more intelligent oscillator that provides earlier signals in trending markets while reducing false signals during sideways consolidation periods. The MAMA-MACD maintains the familiar MACD interpretation while adding adaptive capabilities that help traders navigate varying market conditions more effectively than fixed-parameter oscillators. 📐 MATHEMATICAL FOUNDATION The MAMA-MACD calculation employs advanced digital signal processing techniques: Core Algorithm: • MAMA Line: Adaptively smoothed fast moving average using Mesa algorithm • FAMA Line: Following adaptive moving average that tracks MAMA with additional smoothing • MAMA-MACD Line: MAMA - FAMA (replaces traditional fast EMA - slow EMA) • Signal Line: Configurable moving average of MAMA-MACD line (default: 9-period EMA) • Histogram: MAMA-MACD Line - Signal Line (momentum visualization) Mesa Adaptive Algorithm: The MAMA/FAMA system uses Hilbert Transform quadrature components to detect the dominant market cycle. The algorithm calculates: • In-phase and Quadrature components through Hilbert Transform • Homodyne discriminator for cycle measurement • Adaptive alpha values based on detected cycle period • Fast Limit (0.1 default): Maximum adaptation rate for MAMA • Slow Limit (0.05 default): Maximum adaptation rate for FAMA Signal Processing Benefits: • Automatic adaptation to market cycle changes • Reduced lag during trending periods • Enhanced noise filtering during consolidation • Preservation of signal quality across different timeframes 📊 COMPREHENSIVE SIGNAL ANALYSIS The MAMA-MACD provides multiple layers of market analysis through its adaptive signal generation: Primary Signals: • MAMA-MACD Line above zero: Indicates positive momentum and potential uptrend • MAMA-MACD Line below zero: Suggests negative momentum and potential downtrend • MAMA-MACD crossing above Signal Line: Bullish momentum confirmation • MAMA-MACD crossing below Signal Line: Bearish momentum confirmation Advanced Signal Interpretation: • Histogram Expansion: Strengthening momentum in current direction • Histogram Contraction: Weakening momentum, potential reversal warning • Zero Line Crosses: Important momentum shifts and trend confirmations • Signal Line Divergence: Early warning of potential trend changes Adaptive Characteristics: • Faster response during clear trending conditions • Increased smoothing during choppy market periods • Automatic adjustment to different volatility regimes • Reduced false signals compared to traditional MACD Multi-Timeframe Analysis: The adaptive nature allows consistent performance across different timeframes, automatically adjusting to the dominant cycle period present in each timeframe's data. 🎯 STRATEGIC APPLICATIONS The MAMA-MACD serves multiple strategic functions in comprehensive trading systems: Trend Analysis Applications: • Trend Confirmation: Use zero line crosses to confirm trend direction changes • Momentum Assessment: Monitor histogram patterns for momentum strength evaluation • Cycle-Based Analysis: Leverage adaptive properties for cycle-aware market timing • Multi-Timeframe Alignment: Coordinate signals across different time horizons Entry and Exit Strategies: • Bullish Entry: MAMA-MACD crosses above signal line with histogram turning positive • Bearish Entry: MAMA-MACD crosses below signal line with histogram turning negative • Exit Signals: Histogram contraction or opposite signal line crosses • Stop Loss Placement: Use zero line or signal line as dynamic stop levels Risk Management Integration: • Position Sizing: Scale positions based on histogram strength • Volatility Assessment: Use adaptation rate to gauge market uncertainty • Drawdown Control: Reduce exposure during excessive histogram contraction • Market Regime Recognition: Adjust strategy based on adaptation patterns Portfolio Management: • Sector Rotation: Apply to sector ETFs for rotation timing • Currency Analysis: Use on major currency pairs for forex trading • Commodity Trading: Apply to futures markets with cycle-sensitive characteristics • Index Trading: Employ for broad market timing decisions 📋 DETAILED PARAMETER CONFIGURATION Understanding and optimizing the MAMA-MACD parameters enhances its effectiveness: Fast Limit (Default: 0.1): • Controls maximum adaptation rate for MAMA line • Range: 0.01 to 0.99 • Higher values: Increase responsiveness but may add noise • Lower values: Provide more smoothing but slower response • Optimization: Start with 0.1, adjust based on market characteristics Slow Limit (Default: 0.05): • Controls maximum adaptation rate for FAMA line • Range: 0.01 to 0.99 (should be lower than Fast Limit) • Higher values: Faster FAMA response, narrower MAMACD range • Lower values: Smoother FAMA, wider MAMA-MACD oscillations • Optimization: Maintain 2:1 ratio with Fast Limit for traditional behavior Signal Length (Default: 9): • Period for signal line moving average calculation • Range: 1 to 50 periods • Shorter periods: More responsive signals, potential for more whipsaws • Longer periods: Smoother signals, reduced frequency • Traditional Setting: 9 periods maintains MACD compatibility Signal MA Type: • SMA: Simple average, uniform weighting • EMA: Exponential weighting, faster response (default) • RMA: Wilder's smoothing, moderate response • WMA: Linear weighting, balanced characteristics Parameter Optimization Guidelines: • Trending Markets: Increase Fast Limit to 0.15-0.2 for quicker response • Sideways Markets: Decrease Fast Limit to 0.05-0.08 for noise reduction • High Volatility: Lower both limits for increased smoothing • Low Volatility: Raise limits for enhanced sensitivity 📈 PERFORMANCE ANALYSIS & COMPETITIVE ADVANTAGES The MAMA-MACD offers several improvements over traditional oscillators: Response Characteristics: • Adaptive Lag Reduction: Automatically reduces lag during trending periods • Noise Filtering: Enhanced smoothing during consolidation phases • Signal Quality: Improved signal-to-noise ratio compared to fixed-parameter MACD • Cycle Awareness: Automatic adjustment to dominant market cycles Comparison with Traditional MACD: • Earlier Signals: Provides signals 1-3 bars earlier during strong trends • Fewer False Signals: Reduces whipsaws by 20-40% in choppy markets • Better Divergence Detection: More reliable divergence signals through adaptive smoothing • Enhanced Robustness: Performs consistently across different market conditions Adaptation Benefits: • Market Regime Flexibility: Automatically adjusts to bull/bear market characteristics • Volatility Responsiveness: Adapts to high and low volatility environments • Time Frame Versatility: Consistent performance from intraday to weekly charts • Instrument Agnostic: Effective across stocks, forex, commodities, and cryptocurrencies Computational Efficiency: • Real-time Processing: Efficient calculation suitable for live trading • Memory Management: Optimized for Pine Script performance requirements • Scalability: Handles multiple symbol analysis without performance degradation Limitations and Considerations: • Learning Period: Requires several bars to establish adaptation pattern • Parameter Sensitivity: Performance varies with Fast/Slow Limit settings • Market Condition Dependency: Adaptation effectiveness varies by market type • Complexity Factor: More parameters to optimize compared to basic MACD Usage Notes: This indicator is designed for technical analysis and educational purposes. The adaptive algorithm helps reduce common MACD limitations, but it should not be used as the sole basis for trading decisions. Algorithm performance varies with market conditions, and past characteristics do not guarantee future results. Traders should combine MAMA-MACD signals with other forms of analysis and proper risk management techniques.
Pine Script® indicator
by DCAUT
1
MACD-V with Volatility Normalisation [DCD]MACD-V with Volatility Normalisation This indicator is a modified version of the traditional MACD, designed to account for market volatility by normalizing the MACD line using the Average True Range (ATR). It provides a more adaptive approach to identifying momentum shifts and potential trend reversals. This indicator was developed by Alex Spiroglou in this paper: Spiroglou, Alex, MACD-V: Volatility Normalised Momentum (May 3, 2022). Features: Volatility Normalization: The MACD line is adjusted using ATR to standardize its values across different market conditions. Customizable Parameters: Users can adjust the MACD fast length, slow length, signal line smoothing, and ATR length to suit their trading style. Histogram Visualization: The histogram highlights the difference between the MACD and signal lines, with customizable colors for positive and negative momentum. Crossover Signals: Green and red dots indicate bullish and bearish crossovers between the MACD and signal lines. Background Highlighting: The chart background changes to green when the MACD is above 0 and red when it is below 0, providing a clear visual cue for bullish and bearish conditions. Horizontal Levels: Dotted horizontal lines are plotted at key levels for better visualization of MACD values. How to Use: Look for crossovers between the MACD and signal lines to identify potential buy or sell signals. Use the histogram to gauge the strength of momentum. Pay attention to the background color for quick identification of bullish (green) or bearish (red) conditions. This indicator is ideal for traders who want a more dynamic MACD that adapts to market volatility. Customize the settings to align with your trading strategy and timeframe.
Pine Script® indicator
by DutchCryptoDad
2
MACD Based Price Forecasting [LuxAlgo]The MACD Based Price Forecasting tool is an innovative price forecasting method based on signals generated by the MACD indicator. The forecast includes an area which can help traders determine the area where price can develop after a MACD signal. 🔶 USAGE The forecast returned by the tool allows users to obtain a general picture of how price tends to progress after a specific MACD signal. The forecast is constructed based on percentiles of previous price progressions done after a specific MACD signal is generated. Users can change which condition is used to generate MACD signals from the "Trend Determination" dropdown menu, with "MACD" determining trends based on whether the MACD is positive (uptrend) or negative (downtrend) and "MACD-Signal" determining trends based on the position of the MACD relative to its signal line, with an MACD above the signal line indicating an uptrend, else a downtrend. Users can introduce bias to the forecast by changing the "Average Percentage" setting, with values above 50% introducing bullish bias, and below bearish bias. It can be possible for the forecast to highlight potential reversals depending on the selected forecasting horizon as long as reversals can be observed on trends detected by the MACD. 🔹 Forecasting Area The forecasting area can help visualize the area that will likely contain price after a specific signal. The area width is based on the "Top/Bottom Percentiles" settings, with a higher "Top Percentile" value returning a higher top bound and a lower "Bottom Percentile" value returning a lower bottom bound. These areas can also serve as potential support/resistance areas. 🔶 SETTINGS Fast Length: Fast length of the moving average used to compute the MACD Slow Length: Slow length of the moving average used to compute the MACD Signal Length: Length of the MACD moving average. Trend Determination: Method used to determine a trend direction from the MACD. 🔹 Forecast Maximum Memory: Determines the maximum amount of prices recorded at each steps succeeding a signal. Lower values will return forecasts with a higher degree of variability. Forecasting Length: Forecasting horizon in bars, this value only serves as a limit of the forecasting horizon and might not be reached depending on user selected MACD settings. Top Percentile: Percentile value used to determine the upper bound of the forecasting area. Average Percentile: Percentile value used to determine the forecast. Lower Percentile: Percentile value used to determine the lower bound of the forecasting area.
Pine Script® indicator
by LuxAlgo
16
RSI, SRSI, MACD and DMI cross - Open source codeHello, I'm a passionate trader who has spent years studying technical analysis and exploring different trading strategies. Through my research, I've come to realize that certain indicators are essential tools for conducting accurate market analysis and identifying profitable trading opportunities. In particular, I've found that the RSI, SRSI, MACD cross, and Di cross indicators are crucial for my trading success. Detailed explanation: The RSI is a momentum indicator that measures the strength of price movements. It is calculated by comparing the average of gains and losses over a certain period of time. In this indicator, the RSI is calculated based on the close price with a length of 14 periods. The Stochastic RSI is a combination of the Stochastic Oscillator and the RSI. It is used to identify overbought and oversold conditions of the market. In this indicator, the Stochastic RSI is calculated based on the RSI with a length of 14 periods. The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of prices. It consists of two lines, the MACD line and the signal line, which are used to generate buy and sell signals. In this indicator, the MACD is calculated based on the close price with fast and slow lengths of 12 and 26 periods, respectively, and a signal length of 9 periods. The DMI is a trend-following indicator that measures the strength of directional movement in the market. It consists of three lines, the Positive Directional Indicator (+DI), the Negative Directional Indicator (-DI), and the Average Directional Index (ADX), which are used to generate buy and sell signals. In this indicator, the DMI is calculated with a length of 14 periods and an ADX smoothing of 14 periods. The indicator generates buy signals when certain conditions are met for each of these indicators. 1) For the RSI, a buy signal is generated when the RSI is below or equal to 35 and the Stochastic RSI %K is below or equal to 15, or when the RSI is below or equal to 28 the Stochastic RSI %K is below or equal to 15 or when the RSI is below or equal to 25 and the Stochastic RSI %K is below or equal to 10 or when the RSI is below or equal to 28. 2) For the MACD, a buy signal is generated when the MACD line is below 0, there is a change in the histogram from negative to positive, the MACD line and histogram are negative in the previous period, and the current histogram value is greater than 0. 3) For the DMI, a buy signal is generated when the Positive Directional Indicator (+DI) crosses above the Negative Directional Indicator (-DI), and the -DI is less than the +DI. The indicator generates sell signals when certain conditions are met for each of these indicators: 1) For the RSI, a sell signal is generated when the RSI is above or equal to 75 and the Stochastic RSI %K is above or equal to 85, or when the RSI is above or equal to 80 and the Stochastic RSI %K is above or equal to 85, or when the RSI is above or equal to 85 and the Stochastic RSI %K is above or equal to 90 or when the RSI is above or equal to 82. 2)For the MACD, a sell signal is generated when the MACD line is above 0, there is a change in the histogram from positive to negative, the MACD line and histogram are positive in the previous period, and the current histogram value is less than the previous histogram value. On the other hand, a buy signal is generated when the MACD line is below 0, there is a change in the histogram from negative to positive, the MACD line and histogram are negative in the previous period, and the current histogram value is greater than the previous histogram value. 3)For the DMI a bearish signal is generated when plusDI crosses above minusDI, indicating that bulls are losing strength and bears are taking control. The indicator uses a combination of these four indicators to generate potential buy and sell signals. The buy signals are generated when RSI and SRSI values are in oversold conditions, while sell signals are generated when RSI and SRSI values are in overbought conditions. The indicator also uses MACD crossovers and DMI crossovers to generate additional buy and sell signals. When a signal is strong? The use of multiple signals within a specific timeframe can increase the accuracy and reliability of the signals generated by this indicator. It is recommended to look for at least two signals within a range of 5-8 candles in order to increase the probability of a successful trade. Why it's original? 1) There is no indicator in the library that combine all of these indicators and give you a 360 view 2)The combination of the RSI, Stochastic RSI, MACD, and DMI indicators in a single script it's unique and not available in the libray. 3)The specific parameters and conditions used to calculate the signals may be unique and not found in other scripts or libraries. 4)The use of plotshape() to plot the signals as shapes on the chart may be unique compared to other scripts that simply plot lines or bars to indicate signals. 5)The use of alertcondition() to trigger alerts based on the signals may be unique compared to other scripts that do not have custom alert functionality. Keep attention! It is important to note that no trading indicator or strategy is foolproof, and there is always a risk of losses in trading. While this indicator may provide useful information for making conclusions, it should not be used as the sole basis for making trading decisions. Traders should always use proper risk management techniques and consider multiple factors when making trading decisions. Support me:) If you find this new indicator helpful in your trading analysis, I would greatly appreciate your support! Please consider giving it a like, leaving feedback, or sharing it with your trading network. Your engagement will not only help me improve this tool but will also help other traders discover it and benefit from its features. Thank you for your support!
Pine Script® indicator
by Trading_Paradise
7
MACD ReLoadedA different approach to Gerald Appel's classical Moving Average Convergence Divergence. Appel originaly set MACD with exponential moving averages. In this version users can apply 11 different types of moving averages which they can benefit from their smoothness and vice versa sharpnesses... Built in Moving Average type defaultly set as VAR but users can choose from 11 different Moving Average types like: SMA : Simple Moving Average EMA : Exponential Moving Average WMA : Weighted Moving Average DEMA : Double Exponential Moving Average TMA : Triangular Moving Average VAR : Variable Index Dynamic Moving Average a.k.a. VIDYA WWMA : Welles Wilder's Moving Average ZLEMA : Zero Lag Exponential Moving Average TSF : True Strength Force HULL : Hull Moving Average TILL : Tillson T3 Moving Average In shorter time frames backtest results shows us TILL, WWMA, VIDYA (VAR) could be used to overcome whipsaws because they have less numbers of signals. In longer time frames like daily charts WMA, Volume Weighted MACD V2, and MACDAS and SMA are more accurate according to backtest results. My interpretation of Buff Dormeier's Volume Weighted MACD V2: Thomas Aspray's MACD: (MACDAS)
Pine Script® indicator
by KivancOzbilgic
32
MACD Moving Average Convergence/Divergence - DurbtradeDurbtrade MACD - macd line changes color based on vertical direction. This makes it easier to see and discern movements and also helps the indicator to retain maximum functionality when taking up less chart real estate (also, having the color change really helps me see charts on small screens... such as when it's bright outside and I'm driving in my car and glancing at a chart on my phone... it helps having the info pop visually). A fill option is included to fill the space between the macd and signal lines, though I personally prefer to disable this function. Also, you get a zero line if you want it, and it doesn't extend past the current time, removing unnecessary info and keeping your chart looking a bit cleaner. Finally, there are color-coded, cross-over and cross-under background fills, signaling when the macd line crosses the signal line. This is my 2nd published script, and 2nd script ever. If you like this style, see my 1st published script: Durbtrade Bollinger Bands Width. Hope you find this useful. Feel free to comment.
Pine Script® indicator
by Durbtrade
17
KINSKI Flexible MACDFlexible MACD (Moving Average Convergence/Divergence) Indicator The Moving Average Convergence Divergence consists of three elements: two moving averages (the MACD line and the signal line) and a histogram. The blue MACD line is the difference between a longer and a shorter EMA (here 13 and 21 periods preset), the red signal line is an SMA (here 8 preset) on the MACD line. The histogram (green: ascending, red: descending) shows the difference between both lines. As soon as the blue MACD line crosses the red signal line, circles are generated that indicate an up/down trend. If the red signal line is greater than or equal to the blue MACD line, this indicates a downward trend (red circle). If the blue MACD line is greater than or equal to the red signal line, this indicates an upward trend (green circle). The special thing about this MACD indicator is the many setting options, especially the definition of the MA variants for MACD (Fast, Slow) and signal. You can define the following MA types: "COVWMA", "DEMA", "EMA", "EHMA", "FRAMA", "HMA", "KAMA", "RMA", "SMA", "SMMA", "VIDYA", "VWMA", "WMA". You also have the following display options: - "Up/Down Movements: On/Off" - Shows ascending and descending MACD, signal lines - "Up/Down Movements: Rising Length" - Defines the length from which ascending or descending lines are detected - "Bands: On/Off" - Fills the space between MACD and signal lines with colors to indicate up or down trends - "Bands: Transparency" - sets the transparency of the fill color Disclaimer: I am not a financial advisor. For purpose educate only. Use at your own risk.
Pine Script® indicator
by KINSKI
SCOTTGO Advanced MACD🌟 Custom MACD: Enhanced Visuals & Crossover Signals This indicator is a highly customized version of the traditional Moving Average Convergence Divergence (MACD) oscillator, designed to provide clear, immediate visual confirmation of signal line crossovers and zero-line crossings. Core Features: MACD Crossover Shadow Fill: The area between the MACD line and the Signal line is filled with a customizable shadow. This instantly visualizes whether the MACD is above (bullish crossover) or below (bearish crossover) the Signal line. Signal Crossover Markers (Arrows & Dots): Crossover Dot: A small, configurable solid dot is plotted exactly at the point where the MACD and Signal lines intersect, providing pinpoint accuracy for the crossover event. Crossover Arrows: Customizable up (green) and down (red) arrows are plotted using a small numerical offset from the crossover point, ensuring visibility without cluttering the indicator lines. Zero-Line Crossing Markers: Distinct, small markers (circles/diamonds) are used to signal when the MACD line crosses the zero line, indicating a shift in momentum relative to the baseline. Customizable MA Type: The user can select either Exponential Moving Average (EMA) or Simple Moving Average (SMA) for both the MACD oscillator calculation and the signal line calculation. This indicator is ideal for traders who rely on MACD crossovers and require precise, configurable visual feedback directly on the chart.
Pine Script® indicator
by SCOTTGO
Combo RSI + MACD + ADX MTF (Avec Alertes)✅ Recommended Title: Multi-Signal Oscillator: ADX Trend + DI + RSI + MACD (MTF, Cross Alerts) ✅ Detailed Description 📝 Overview This indicator combines advanced technical analysis tools to identify trend direction, capture reversals, and filter false signals. It includes: ADX (Multi-TimeFrame) for trend and trend strength detection. DI+ / DI- for directional bias. RSI + ZLSMA for oscillation analysis and divergence detection. Zero-Lag Normalized MACD for momentum and entry timing. ⚙️ Visual Components ✅ Green/Red Background: Displays overall trend based on Multi-TimeFrame ADX. ✅ DI+ / DI- Lines: Green and red curves showing directional bias. ✅ Normalized RSI: Blue oscillator with orange ZLSMA smoothing. ✅ Zero-Lag MACD: Violet or fuchsia/orange oscillator depending on the version. ✅ Crossover Points: Colored circles marking buy and sell signals. ✅ ADX Strength Dots: Small black dots when ADX exceeds the strength threshold. 🚨 Included Alert System ✅ RSI / ZLSMA Crossovers (Buy / Sell). ✅ MACD / Signal Line Crossovers (Buy / Sell). ✅ DI+ / DI- Crossovers (Buy / Sell). ✅ Double Confirmation DI+ / RSI or DI+ / MACD. ✅ Double Confirmation DI- / RSI or DI- / MACD. ✅ Trend Change Alerts via Background Color. ✅ ADX Strength Alerts (Above Threshold). 🛠️ Suggested Configuration Examples 1. Short-Term Reversal Detection: RSI Length: 7 to 14 ZLSMA Length: 7 to 14 MACD Fast/Slow: 5 / 13 ADX MTF Period: 5 to 15 ADX Threshold: 15 to 20 2. Long-Term Trend Following: RSI Length: 21 to 30 ZLSMA Length: 21 to 30 MACD Fast/Slow: 12 / 26 ADX MTF Period: 30 to 50 ADX Threshold: 20 to 25 3. Scalping / Day Trading: RSI Length: 5 to 9 ZLSMA Length: 5 to 9 MACD Fast/Slow: 3 / 7 ADX MTF Period: 5 to 10 ADX Threshold: 10 to 15 🎯 Why Use This Tool? Filters false signals using ADX-based background coloring. Provides multi-source alerting (RSI, MACD, ADX). Helps identify true market strength zones. Works on all markets: Forex, Crypto, Stocks, Indices.
Pine Script® indicator
by schacherj959
FuTech : MACD Crossovers Advanced Alert Lines============================================================= Indicator : FuTech: MACD Crossovers Advanced Alert Lines Overview: The "FuTech: MACD Crossovers Advanced Alert Lines" indicator is designed to assist traders in identifying key technical patterns using the :- 1. MACD (Moving Average Convergence Divergence) and 2. Golden/Death Crossovers By visualizing these indicators directly on the chart with advanced lines, it helps traders make more informed decisions on when to enter or exit trades. ============================================================= Key Features of "FuTech: MACD Crossovers Advanced Alert Lines": 1. MACD Crossovers: a) The MACD is one of the most widely used indicators for identifying momentum shifts and potential buy/sell signals. This indicator plots vertical lines on the chart whenever the MACD line crosses the signal line. b) Upward Crossover (Bullish Signal) : When the MACD line crosses above the signal line, a green vertical line will appear, indicating a potential buying opportunity. c) Downward Crossover (Bearish Signal) : When the MACD line crosses below the signal line, a red vertical line will appear, signaling a potential selling opportunity. 2. Golden Cross & Death Cross: a) The Golden Cross occurs when the price moves above a long-term moving average (like the 50-day moving average), signaling a potential upward trend. b) The Death Cross occurs when the price moves below a long-term moving average, signaling a potential downward trend. c) These crossovers are displayed with customizable lines on the chart to easily spot when the market is shifting direction. d) Golden Cross (Bullish Signal) : A blue vertical line appears when the price crosses above the selected long-term moving average. e) Death Cross (Bearish Signal) : A purple vertical line appears when the price crosses below the selected long-term moving average. ============================================================= Customization Options: This indicator offers several customization options to suit your trading preferences: 1) MACD Settings: a) Choose between different moving average types (EMA, SMA, or VWMA) for calculating the MACD. b) Adjust the lengths of the fast, slow, and signal MACD periods. c) Control the width and color of the vertical lines drawn on the chart for both up and down crossovers. 2) Golden Cross / Death Cross Settings: a) Select the moving average type for the Golden Cross / Death Cross (EMA, SMA, or VWMA). b) Define the lookback period for calculating the Golden Cross / Death Cross. c) Customize the appearance of the Golden and Death Cross lines, including their width and color. You can use both as well as either of the MACD lines or Golden Crossover / Death Crossover Lines respectively as per your trading strategies ============================================================= How "FuTech: MACD Crossovers Advanced Alert Lines" indicator Works: a) The indicator monitors the price and calculates the MACD and Golden/Death Crosses. b) When the MACD line crosses above or below the signal line, or when the price crosses above or below the long-term moving average, it plots a vertical line on the chart. c) These lines help traders quickly spot potential turning points in the market, providing clear signals to act upon. ============================================================= Use Case: a) Swing Traders: The indicator is useful for spotting momentum shifts and trend reversals, helping you time entries and exits for short- to medium-term trades. b) Long-Term Traders: The Golden and Death Cross signals help identify major trend changes, giving insights into potential market shifts. ============================================================= Why Use This "FuTech: MACD Crossovers Advanced Alert Lines" Indicator ? a) Clear Visuals : The vertical lines provide clear and easy-to-spot signals for MACD crossovers and Golden/Death Crosses. b) Customizable : Adjust settings for your personal trading strategy, whether you're focusing on short-term momentum or long-term trend shifts. c) Supports Decision Making : With its advanced line plotting and customizable features, this indicator helps you make quicker and more informed trading decisions. ============================================================= How to Use: a) MACD Crossovers: Look for green lines to signal potential buying opportunities (when the MACD line crosses above the signal line) and red lines for selling opportunities (when the MACD line crosses below the signal line). b) Golden Cross / Death Cross: Use the blue lines to confirm when a positive trend may begin (Golden Cross) and purple lines to warn when a negative trend may start (Death Cross). ============================================================= Conclusion: "FuTech: MACD Crossovers Advanced Alert Lines" indicator combines two powerful technical analysis tools, the MACD and Golden/Death Crosses, to provide clear, actionable signals on your chart. By customizing the appearance of these signals and combining them with your trading strategy, you can enhance your decision-making process and improve your trading outcomes. ============================================================= Thank you ! Jai Swaminarayan Dasna Das ! He Hari ! Bas Ek Tu Raji Tha ! =============================================================
Pine Script® indicator
by Atmiya_aatubhai
Adaptive MACD [LuxAlgo]The Adaptive MACD indicator is an adaptive version of the popular Moving Average Convergence Divergence (MACD) oscillator, returning longer-term variations during trending markets and cyclic variations during ranging markets while filtering out noisy variations. 🔶 USAGE The proposed oscillator contains all the elements within a regular MACD, such as a signal line and histogram. A MACD value above 0 would indicate up-trending variations, while a value under 0 would be indicating down-trending variations. Just like most oscillators, our proposed Adaptive MACD is able to return divergences with the price. As we can see in the image above ranging markets will make the Adaptive MACD more conservative toward more cyclical conservations, filtering out both noise and longer-term variations. However, when longer-term variations (such as in a trending market) are prominent the oscillator will conserve longer-term variations. The R2 Period setting determines when trending/ranging markets are detected, with higher values returning indications for longer intervals. The fast and slow settings will act similarly to the regular MACD, however, closer values will return more cyclical outputs. The image above compares our proposed MACD (top) with a regular MACD (bottom), both using fast = 19 and slow = 20 . 🔶 DETAILS It is common to be solely interested in the trend component when the market is trending, however, during a ranging market it is more common to observe a more prominent cyclical/noise component. We want to be able to preserve one of the components at the appropriate market conditions, however, the regular MACD lack the ability to preserve cyclical component with high accuracy. The MACD is an IIR bandpass filter. In order to obtain a lower passband bandwidth and a more symmetrical magnitude response (which would allow to conserve more precise cyclical variations) we can directly change the system calculation: y = (price - price ) × g + ((1 - a1) + (1 - a2)) × y - (1 - a1) × (1 - a2) × y where: a1 = 2/(fast + 1) a2 = 2/(slow + 1) g = a1 - a2 Using division instead of multiplication on the second feedback weight allows further weighting the 2 samples lagged output, returning a more desirable magnitude response with a higher degree of filtering on both ends of the spectrum as shown in the image below: We are interested in conserving cycles during ranging markets, and longer-term variations during trending markets, we can do this by interpolating between our two filter coefficients: α × + (1 - α) × where 1 > α > 0 . α is measuring if the market is trending or ranging, with values closer to 1 indicating a trending market. We see that for higher values of α the original coefficient of the MACD is used. The image below shows various magnitude responses given multiple values of α : We use a rolling R-Squared as α , this measurement has the benefit of indicating if the market is trending or ranging, as well as being constrained within range (0, 1), and having a U-shaped distribution. If you are interested to learn more about the MACD see: 🔶 SETTINGS R2 Period: Calculation window of the R-Squared. Fast: Fast period for the calculation of the Adaptive MACD, lower values will return more noisy results. Slow: Slow period for the calculation of the Adaptive MACD, higher values will return result with longer-term conserved variations. Signal: Period of the EMA applied to the Adaptive MACD.
Pine Script® indicator
by LuxAlgo
15
[CP]Pivot Boss Multi Timeframe CPR Inception with MACD and EMAINTRODUCTION: This indicator combines multi-timeframe CPR bands with MACD Momentum and EMA trend, all projected on the candlestick chart through a novel visualization. If you have seen my other indicators on TradingView, you would know that I use floor pivots a lot and “Secrets of a Pivot Boss” is my favorite book. While using floor pivots, time and again I have noticed an interesting price behavior, Trending moves in price typically start from around the Central Pivot Range (CPR). The CPR could be from ANY timeframe. These moves can easily be caught using simple momentum and trend indicators like MACD and EMA crossovers. Yes, it is that simple. Follow along to understand how to use this indicator. INDICATOR SETTINGS: RANGEBOUND MACD AND EMA MARKINGS: TradingView limits the max number of labels that can be shown on a chart to 500. Therefore, if you go far back enough, you won't see any markings for the MACD or EMA setups. If you are looking to test the efficacy of this indicator in the past, change the start and end dates to your desired timeframe and then select the ‘Mark MACD and EMA Setups in Range?’ option. MULTI TIMEFRAME CENTRAL PIVOT RANGE: Here you can select CPRs and their bands from which timeframes are shown on the chart. I will share my favorite settings later in this description. CPR CONFIGURATION: Show CPR Labels: CPRs markings can carry labels, so that you don’t confuse between which line is what. Use this setting to toggle them On/Off. Show Next Time Period Pivots: Check this option if you want to see the CPR of the next time period. This is typically done to figure out the ’Two Day CPR Relationship’ . Read the book, “Secrets of a Pivot Boss”, to understand more. EMA TREND: Show EMA on the Chart: EMAs will be plotted on the chart. Standard stuff. Mark EMA Crossovers on Chart: EMA crossovers will be marked on the chart in diamond shapes. If you are using EMA crossovers, I recommend setting this option to True. Rest of the EMA settings are fairly obvious. MACD MOMENTUM: Projecting MACD parameters directly on the candlesticks is surely going to give you a new perspective about price action and MACD. Also, in order to better understand the MACD projections on the chart, you can add a standard MACD indicator on the chart with default settings to figure out what my indicator is actually showing you. Marking MACD Crossovers on Chart: Marks the MACD signal crossovers on the chart. This visualization was a game changer for me. Show MACD Histogram on Chart: Projects the complete MACD Histogram in a novel fashion (Try it!). You will be able to visually see the ebbs and flow of momentum in the charts. Mark MACD Histogram Peaks on Chart: Marks only the MACD peaks instead of the complete histogram. Peaks are a great way to enter an ongoing trend and to play an intraday rangebound market. Rest of the settings are just the standard settings that you will find in a typical MACD indicator. ALERTS: Not shown in the settings panel, but I have added alerts for EMA and MACD Crossovers so that you don’t have to sit in front of the charts or constantly check the price all day long. If you don’t know how to set alerts in TradingView, then please Google it. INDICATOR USAGE EXAMPLES: This indicator can be used in intraday as well as in higher timeframes. There are quite a few variations possible, I personally prefer to use the EMA crossovers in intraday (5m) and MACD on Daily timeframes. This is just a matter of personal preference, some people might prefer using EMAs only or MACD only in all timeframes. Here are my personal settings for the intraday 5-minute timeframe: Turn on all the CPR pivots starting from Yearly all the way to Daily. You can turn on 6 hourly and 4 hourly as well if you want. Hourly CPR is mostly used when the price is in a strong trend and you missed the entry and don’t know when to enter. Price will typically experience pullbacks towards the Hourly CPR, before resuming in the direction of the trend. That is your chance to hop onto the bandwagon. For Intraday, I keep the Bands off. Just a personal preference here. You can turn ON the Show CPR Labels , if you want. Turn ON both the options in the EMA TREND section. You would want to see the EMA crossovers marked on the chart as well as the EMAs themselves, as the distance between the two EMAs will give you an idea about the strength of the trend. Keep rest of the settings in the EMA section as default (you can change the colors if you wish). I keep the same EMAs as the ones kept in the MACD indicator. I like to keep things simple. In the MACD MOMENTUM section, turn ON Mark MACD Histogram Peaks on Chart and all the other options turned OFF. Leave the other settings as default. By the way, these are the default settings of the standard MACD Indicator. You can set up EMA Bullcross and Bearcross alarms if you like. Before checking out the examples, remember one super simple rule: SOME OF THE BEST TRENDING MOVES IN THE MARKET, BE IT INTRADAY OR OTHERWISE, ORIGINATE IN THE VICINITY OF A LARGER TIMEFRAME PIVOT/CPR. Look for price settling above/below a pivot, and then a move away from the pivot in any direction is typically a trending move. You can use hourly pivots or MACD Histogram peaks marked on the chart to enter an existing trend, or add to your positions. Let’s have a look at a few recent intraday examples from the Crypto, Indian, and US equity markets. I have added my comments in the charts to make you easily understand what is going on. Understand that both, moving average crossover and MACD, will give out a lot of signals (chop) every day. But almost 70% of them are going to be fake signals. It is the signals that you get when the price is near a Pivot, that tend to convert into gorgeous trending moves that last. BTC 5m Charts NIFTY Futures 5m Charts (good intraday trends are hard to find here, as the market is very efficient) TSLA 5m Charts Some important points for using this indicator in higher timeframes: For higher timeframes, my personal preference is to go with the MACD indicator. I personally find MACD to be lethal on daily and weekly timeframes, if you know how to use it well. The default settings of the indicator are the settings I use for both, Daily and Weekly, timeframes. Additionally, I turn off the CPR labels. In theory large trending moves still have a big probability to start near an important pivot level, however, in larger timeframes, trending moves can start from anywhere. They need not start in the vicinity of any important pivot (but they often do!). Weekly pivots can act as great pullback levels when the price is in strong momentum, when trading on the daily timeframe. Quarterly Pivots act as great pullback levels when the price is in strong momentum, when trading on the weekly timeframe. BTC Weekly Chart BTC Daily Chart Nifty Weekly Chart Nifty Daily Chart NASDAQ Weekly Chart NASDAQ Daily Chart FINAL WORDS: Please understand that I have Cherry Picked the examples to showcase the capability of the indicator and its usage. DO NOT conflate the accuracy of examples with the accuracy of this indicator. Biggest catch is the fact that this indicator, like every other indicator out there, will have whipsaws. Some I have also marked in the example charts. You need to come up with your own technique to avoid whipsaws, one technique I have shared here…… big moves typically start near pivots. Work on avoiding whipsaws and finding you own edge in the markets. If you really want to learn how to use Pivots, read the book ’Secrets of a Pivot Boss’ . This book can change your life.
Pine Script® indicator
by pranjalchaubey
16
QuantNomad - EVWMA MACD StrategyPretty simple EVWMA (Elastic Volume Weighted Moving Average ) MACD Strategy. EVWMA is a quite interesting moving average where the period of the MA is defined from the volume itself. It incorporates volume information in a natural and logical way. The EVWMA can be looked at as an approximation to the average price paid per share. As a volume period, you can use sum of the last x bars volumes. Here are other EVWMA indicators/strategies: EVWMA indicator: EVWMA Cross strategy:
Pine Script® strategy
by QuantNomad
1
Standardized MACD Heikin-Ashi TransformedThe Standardized MACD Heikin-Ashi Transformed (St. MACD) is an advanced indicator designed to overcome the limitations of the traditional MACD. It offers a more robust and standardized measure of momentum, making it comparable across different timeframes and securities. By incorporating the Heikin-Ashi transformation, the St. MACD provides a smoother visualization of trends and potential reversals, enhancing its utility for traders seeking a clearer view of the underlying market direction. Methodology: The calculation of St. MACD begins with the traditional MACD, which computes the difference between two exponential moving averages (EMAs) of the price. To address the issue of non-comparability across assets, the St. MACD normalizes its values using the exponential average of the price's height. This normalization process ensures that the indicator's readings are not influenced by the absolute price levels, allowing for objective and quantitatively defined comparisons of momentum strength. Furthermore, St. MACD utilizes the Heikin-Ashi transformation, which involves deriving candles from the price data. These Heikin-Ashi candles provide a smoother representation of trends and help filter out noise in the market. A predictive curve of Heikin-Ashi candles within the St. MACD turns blue or red, indicating the prevailing trend direction. This feature enables traders to easily identify trend shifts and make better informed trading decisions. Advantages: St. MACD offers several key advantages over the traditional MACD- Standardization: By normalizing the indicator's values, St. MACD becomes comparable across different assets and timeframes. This makes it a valuable tool for traders analyzing various markets and seeking consistent momentum measurements. Heikin-Ashi Transformation: The integration of the Heikin-Ashi transformation smoothes out the indicator's fluctuations and enhances trend visibility. Traders can more easily identify trends and potential reversal points, improving their market analysis. Quantifiable Momentum: St. MACD's key levels represent the strength of momentum, providing traders with a quantifiable framework to gauge the intensity of market movements. This feature helps identify periods of increased or decreased momentum. Utility: The St. MACD indicator offers versatile utility for traders- Trend Identification: Traders can use the color-coded predictive curve of Heikin-Ashi candles to swiftly determine the prevailing trend direction. This aids in identifying potential entry and exit points in the market. Reversal Signals: Colored extremes within the St. MACD signal potential price reversals, alerting traders to potential turning points in the market. This assists in making timely decisions during market inflection points. Overbought/Oversold Conditions: The histogram version of St. MACD can be used in conjunction with the bands to detect short-term overbought or oversold market conditions, allowing traders to adjust their strategies accordingly. In conclusion, this tool addresses the limitations of the traditional MACD by providing a standardized and comparable momentum indicator. Its incorporation of the Heikin-Ashi transformation enhances trend visibility and assists traders in making more informed decisions. With its quantifiable momentum measurements and various utility features, the St. MACD is a valuable tool for traders seeking a clearer and more objective view of market trends and reversals. Key Features: Display Modes: MACD, Histogram or Hybrid Reversion Triangles by adjustable thresholds Bar Coloring Methods: MidLine, Candles, Signal Cross, Extremities, Reversions Example Charts: -Traditional limitations- -Comparisons across time and securities- -Showcase- See Also: -Other Heikin-Ashi Transforms-
Pine Script® indicator
by EliCobra
54
ESTOCÁSTICO + NORMALIZED MACD=== INTRO === This is a 2 in 1 indicator, STOCHASTIC + NORMALIZED MACD. I release this script as public because both stochastic and normalized macd are public, so I cannot find any reason to post it as private :) === USAGE === You can use any of the indicators by itself as usual, stochastic as a oversold/overbought indicator as a momentum/trend indicator. Usually, crossovers are used for LONG/SHORT entries. I added dots for crossovers as well as background colors to show movement direction when both indicators agree: green = bullish, red = bearish and orange = range/consolidation. === SETTINGS === Default settings for both indicators have been changed (but they're of course configurable), to make them work better together. You can also change NMACD moving average time to SMA or WMA instead of SMA, SMA is really slow for me but give it a try, WMA is more aggressive. === RECOMMENDATIONS === Always look for higher timeframes, for example, if you're trading 1h, don't try to catch a 1H "ALL GREEN" LONG while 4H is "ALL RED" because otherwise you're just "trying" to catch a bounce in the 1H chart that could never happen, always trade with the main trend. Try to catch both crossovers in the opposite area, ex: try to LONG when both indicators are below 50 and SHORT above. I did not test divergences on this indicator, as the MACD is normalized i prefer to use a standard MACD for that, but you can use the stochastic for sure.
Pine Script® indicator
by JoseMetal
9
Customizable MACD (how to detect a strong convergence)Helloooo traders I wondered once if a MACD was based on an EMA/EMA/SMA or SMA/SMA/EMA (or WHATEVA/WHATEVA/WHATEVA). Seems they're so many alternatives out there. I decided to empower my audience more by choosing the type of moving averages you want for your MACD. More options doesn't always mean better performance - but who knows - some might find a config that they like with it for their favorite asset/timeframe. I added also a multi-timeframe component because I'm a nice guy ^^ Convergence is my BEST friend An oscillator (like MACD) is to measure how strong a momentum is - generally, traders use those indicators to confirm a trend. So understand that a MACD (or any other indicator not based on convergence ) won't likely be sufficient for doing great on the market. Combined with your favorite indicator, however, you may get great results. My indicators fav cocktail is mixing : 1) an oscillator (momentum confirmation) 2) a trendline/key level break (momentum confirmation) 3) adding-up on a different trading method but still converging with the first entry. The reason I'm deep with convergence detection is because I'm obsessed with removing those fakeout signals. You know which ones I'm talking about :) Those trades when the market goes sideways but our capital goes South (pun 100% intended) - 2 days later, the price hasn't changed much but some lost some capital due to fees, being overexposed, buying the top/selling the bottom of a range they didn't identify. It's publicly known that ranges are the worst traders' enemy. It's boring, not fun, and .... end up moving in the direction we expected when we go to sleep or outside. NO ONE/BROKER/EX-GF is tracking your computer - I checked also for mine as it happened for me way too often in the past. I surely preferred blaming a few external unknown conditions than improving my TA back in the days #bad #dave But my backtest sir... Our backtests show what they're being told to show . A backtest without a stop-loss/hard exit logic will show incredible results. Then trying that backtest with live trading is like in the Matrix movie - discovering the real world is tough and we must choose between the blue pill (learning how to evaluate properly risk/opportunity caught) and the red pill (increasing the position sizing, not setting a stop loss, holding the positions hoping for the best) Last few words Convergences aren't invented because it's cool to mix indicators with others. (it is actually and even fun) They're created to remove most of the fakeouts . For those that can't be removed - a strong risk management would cut most of the remaining potential big losses. No system works 100% of the time - so a convergence system needs a back-up plan in case the converged signal is wrong (could be stop-loss, hard exit, reducing position sizing, ...) Wishing you the BEST and happy beginning of your week Daveatt
Pine Script® indicator
by Daveatt