One simple indicator for volatility, divergence and relative momentum
Features: - Normalized MACD (by slow MA) - Candle MACD (fast MA length is set to 0 in candle mode, i.e. price minus slow MA) - Multi color histogram - Background coloring based on MACD direction - Choice of different MA types (Exponential, Simple, Weighted, Smoothed, Triple EMA) - Triple EMA smoothing
Benefits of normalization: - Absolutely better than RSI for comparing across different periods and assets
Applications and benefits of candle visualization: - Zero cross: most traders use MAs overlaid on the main chart and look for price distance and MA cross visually. In candle mode, this indicator measures the difference between price and the slow moving MA. When this indicator crosses zero, it means price is crossing the slow moving MA. - Divergence: full candle visualization (OHLC) is not possible for most other indicators. Candle visualization allows measuring divergence between price high, low and close simultaneously. Some trades incorrectly measure divergence between high, low of price against indicator tops and bottoms while having the indicator input set to default (usually close). With this indicator, you don't need to worry about such complexities.
Recommended setting: - Enjoy candle mode :) - Source set to hlc3
Release Notes
⋅
- Added normalization by deviation feature. I did not use the built-in deviation function as I could not understand how it works. If I did, it would have been possible to replicate CCI with this indicator.
Here is a example:
Release Notes
⋅
- fixed a bug that was caused due to Pine engine upgrade - changed some colors
Ichimoku = Close> = conversionLine
98% or more identical.
Miraculous