Note that you still need to use other indicators like BB, OBV for confirmation. More details at http://www.omniumsoftware.com/FourMACD.h...
BTW, I am not a trader, but a coder. I spend lot of time here at TV and have learnt a lot about how pro-traders think.
This is my way of giving back to TV community. Hope you find this useful (do check out my other indicators). Appreciate any comments / feedback.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
// // @author LazyBear // study(title = "4MACD [LazyBear]", shorttitle="4MACD_LB") source=close mult_b=input(4.3, title="Blue multiplier") mult_y=input(1.4, title="Yellow multiplier") ema5=ema(close,5) ema8=ema(close,8) ema10=ema(close,10) ema17=ema(source,17) ema14=ema(source,14) ema16=ema(close,16) ema17_14 = ema17-ema14 ema17_8=ema17-ema8 ema10_16=ema10-ema16 ema5_10=ema5-ema10 MACDBlue=mult_b*(ema17_14-ema(ema17_14,5)) MACDRed=ema17_8-ema(ema17_8,5) MACDYellow=mult_y*(ema10_16-ema(ema10_16,5)) MACDGreen=ema5_10-ema(ema5_10,5) plot(MACDBlue, style=histogram, color=#0066cc, linewidth=4) plot(MACDRed, style=histogram, color=red, linewidth=4) plot(MACDYellow, style=histogram, color=yellow, linewidth=4) plot(MACDGreen, style=histogram, color=green, linewidth=4)
When red is on top and green on the bottom – you want to be short or in cash.
There are two additional colors that help one determine when to enter and when to exit.
When green is on top and one notices that the tips of the green histogram are turning yellow and the red histograms on the bottom are getting blue tips – go to cash now or short now.
When red is at the top and starts to form blue tips or yellow tips are forming on the green while green is in the bottom of the chart – one wants to go long with the fund or stock.
Need confirmation from other indicators, I have seen people suggest BB/TVI.