PROTECTED SOURCE SCRIPT
MACDV MTF V3.0 - Improved
How the Overall Signal Works:
1. Individual Indicator Scoring (per timeframe)
Each indicator is scored from -1 (bearish) to +1 (bullish):
MA Momentum: 30% (was 35%)
ADX/DI: 23% (was 25%) - improved logic
MACDV: 20% (was 25%)
RSI: 12% (was 15%)
Bollinger Bands: 10% (NEW)
Volume: 5% (NEW)
2. Multi-Timeframe Aggregation
Each timeframe gets a different weight:
Lower timeframes (1m, 3m, 5m): 2-4% weight
Mid timeframes (15m-1H): 6-10% weight
Higher timeframes (2H-4H, Daily): 12-14% weight
Very high (Weekly, Monthly): 10% weight
Higher timeframes carry more weight because they represent stronger, more reliable trends.
3. Signal Output
Score Range: -1.0 (extreme bearish) to +1.0 (extreme bullish)
Signal Labels:
STRONG BUY (>0.4)
BUY (>0.2)
WEAK BUY (>0.05)
NEUTRAL (-0.05 to 0.05)
WEAK SELL (<-0.05)
SELL (<-0.2)
STRONG SELL (<-0.4)
Confidence %: Shows how strong the signal is
4. Visual Display
Table Row: Shows the overall signal prominently at the bottom
Chart Plot: Signal score plotted with reference lines for each zone
Color Coded: Green for bullish, red for bearish, gray for neutral
Signal Logic Philosophy:
The system is designed to be conservative - it requires agreement across multiple timeframes and indicators before giving strong signals. This reduces false signals but may mean fewer total signals.
The weighting favors:
Long-term trend (MA momentum - 35%)
Trend strength (ADX/DI - 25%)
Short-term momentum (MACDV - 25%)
Momentum confirmation (RSI - 15%)
You can adjust the weights in the scoreIndicator() function to match your trading style!
ADX Values:
70+: "Very Strong Trend"
50-70: "Strong Trend"
40-50: "Trending"
25-40: "Emerging Trend"
20-25: "Weak Trend"
<20: "No Trend/Ranging"
ADX/DI Relationship (now correctly shows):
"Strong Uptrend" - DI+ dominates above ADX
"Strong Downtrend" - DI- dominates above ADX
"Weak Uptrend/Downtrend" - Direction clear but weak
"Choppy Trend" - Both DI lines above ADX (indecision)
"Ranging Market" - ADX below 25
Added Bollinger Bands 📊
What it shows:
Position of price within the bands (0-100%)
Identifies overbought/oversold extremes
Helps spot potential reversals
Status Labels:
Ext. Overbought (>95%)
Overbought (>80%)
Upper/Mid/Lower Range
Oversold (<20%)
Ext. Oversold (<5%)
How it helps:
When price is at extremes (>95% or <5%), expect mean reversion
Complements RSI for better entry/exit timing
10% weight in overall signal
Added Volume Analysis 📈
What it shows:
Current volume vs 20-period average
Confirms or questions the strength of moves
Status Labels:
Very High (>2.0x average)
High (>1.5x)
Above/Below Average
Low (<0.5x)
How it helps:
High volume + bullish indicators = strong confidence
Low volume + signals = weak/questionable moves
5% weight in overall signal (confirmation role)
How to Use the Enhanced Indicator
Reading the Overall Signal:
Check the bottom row - Shows: Signal | Score | Confidence%
Look at higher timeframes first (Daily, 4H, 1H) - they carry more weight
Confirm with volume - Strong signals need volume confirmation
Check BB position - Avoid buying at extremes unless oversold bounce
Best Signal Combinations:
Strong Buy Setup:
Overall Signal: BUY or STRONG BUY
Multiple timeframes: Phase I or II momentum
ADX: Emerging or Strong Trend (>25)
ADX/DI: Strong Uptrend
Volume: Above Average or High
BB: Oversold or Lower Range
MACDV: Rallying or Rebounding
Strong Sell Setup:
Overall Signal: SELL or STRONG SELL
Multiple timeframes: Phase III, IV, or V
ADX: Strong Trend with DI- dominant
Volume: High (confirming the move down)
BB: Overbought or Upper Range
MACDV: Retracing or Reversing
Neutral/Wait:
Mixed timeframe signals
Low volume across timeframes
ADX: Ranging Market
BB: Mid Range
MACDV: Ranging
⚠️ Important Trading Notes:
No indicator is perfect - Use this with price action, support/resistance, and risk management
Higher timeframes matter more - A Daily bearish signal overrides a 5min bullish signal
Volume confirms everything - Low volume signals are suspect
BB extremes can persist - Overbought can become more overbought in strong trends
Always use stop losses - Even "STRONG BUY" signals can fail
The indicator is now significantly more robust with better ADX interpretation, volume confirmation, and mean reversion detection via Bollinger Bands!
1. Individual Indicator Scoring (per timeframe)
Each indicator is scored from -1 (bearish) to +1 (bullish):
MA Momentum: 30% (was 35%)
ADX/DI: 23% (was 25%) - improved logic
MACDV: 20% (was 25%)
RSI: 12% (was 15%)
Bollinger Bands: 10% (NEW)
Volume: 5% (NEW)
2. Multi-Timeframe Aggregation
Each timeframe gets a different weight:
Lower timeframes (1m, 3m, 5m): 2-4% weight
Mid timeframes (15m-1H): 6-10% weight
Higher timeframes (2H-4H, Daily): 12-14% weight
Very high (Weekly, Monthly): 10% weight
Higher timeframes carry more weight because they represent stronger, more reliable trends.
3. Signal Output
Score Range: -1.0 (extreme bearish) to +1.0 (extreme bullish)
Signal Labels:
STRONG BUY (>0.4)
BUY (>0.2)
WEAK BUY (>0.05)
NEUTRAL (-0.05 to 0.05)
WEAK SELL (<-0.05)
SELL (<-0.2)
STRONG SELL (<-0.4)
Confidence %: Shows how strong the signal is
4. Visual Display
Table Row: Shows the overall signal prominently at the bottom
Chart Plot: Signal score plotted with reference lines for each zone
Color Coded: Green for bullish, red for bearish, gray for neutral
Signal Logic Philosophy:
The system is designed to be conservative - it requires agreement across multiple timeframes and indicators before giving strong signals. This reduces false signals but may mean fewer total signals.
The weighting favors:
Long-term trend (MA momentum - 35%)
Trend strength (ADX/DI - 25%)
Short-term momentum (MACDV - 25%)
Momentum confirmation (RSI - 15%)
You can adjust the weights in the scoreIndicator() function to match your trading style!
ADX Values:
70+: "Very Strong Trend"
50-70: "Strong Trend"
40-50: "Trending"
25-40: "Emerging Trend"
20-25: "Weak Trend"
<20: "No Trend/Ranging"
ADX/DI Relationship (now correctly shows):
"Strong Uptrend" - DI+ dominates above ADX
"Strong Downtrend" - DI- dominates above ADX
"Weak Uptrend/Downtrend" - Direction clear but weak
"Choppy Trend" - Both DI lines above ADX (indecision)
"Ranging Market" - ADX below 25
Added Bollinger Bands 📊
What it shows:
Position of price within the bands (0-100%)
Identifies overbought/oversold extremes
Helps spot potential reversals
Status Labels:
Ext. Overbought (>95%)
Overbought (>80%)
Upper/Mid/Lower Range
Oversold (<20%)
Ext. Oversold (<5%)
How it helps:
When price is at extremes (>95% or <5%), expect mean reversion
Complements RSI for better entry/exit timing
10% weight in overall signal
Added Volume Analysis 📈
What it shows:
Current volume vs 20-period average
Confirms or questions the strength of moves
Status Labels:
Very High (>2.0x average)
High (>1.5x)
Above/Below Average
Low (<0.5x)
How it helps:
High volume + bullish indicators = strong confidence
Low volume + signals = weak/questionable moves
5% weight in overall signal (confirmation role)
How to Use the Enhanced Indicator
Reading the Overall Signal:
Check the bottom row - Shows: Signal | Score | Confidence%
Look at higher timeframes first (Daily, 4H, 1H) - they carry more weight
Confirm with volume - Strong signals need volume confirmation
Check BB position - Avoid buying at extremes unless oversold bounce
Best Signal Combinations:
Strong Buy Setup:
Overall Signal: BUY or STRONG BUY
Multiple timeframes: Phase I or II momentum
ADX: Emerging or Strong Trend (>25)
ADX/DI: Strong Uptrend
Volume: Above Average or High
BB: Oversold or Lower Range
MACDV: Rallying or Rebounding
Strong Sell Setup:
Overall Signal: SELL or STRONG SELL
Multiple timeframes: Phase III, IV, or V
ADX: Strong Trend with DI- dominant
Volume: High (confirming the move down)
BB: Overbought or Upper Range
MACDV: Retracing or Reversing
Neutral/Wait:
Mixed timeframe signals
Low volume across timeframes
ADX: Ranging Market
BB: Mid Range
MACDV: Ranging
⚠️ Important Trading Notes:
No indicator is perfect - Use this with price action, support/resistance, and risk management
Higher timeframes matter more - A Daily bearish signal overrides a 5min bullish signal
Volume confirms everything - Low volume signals are suspect
BB extremes can persist - Overbought can become more overbought in strong trends
Always use stop losses - Even "STRONG BUY" signals can fail
The indicator is now significantly more robust with better ADX interpretation, volume confirmation, and mean reversion detection via Bollinger Bands!
Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.