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MACD-X, More Than MACD by DGTMoving Average Convergence Divergence – MACD The most popular indicator used in technical analysis, the moving average convergence divergence (MACD), created by Gerald Appel. MACD is a trend-following momentum indicator, designed to reveal changes in the strength, direction, momentum, and duration of a trend in a financial instrument’s price Historical evolution of MACD, - Gerald Appel created the MACD line, - Thomas Aspray added the histogram feature to MACD - Giorgos E. Siligardos created a leader of MACD MACD employs two Moving Averages of varying lengths (which are lagging indicators) to identify trend direction and duration. Then, MACD takes the difference in values between those two Moving Averages (MACD Line) and an EMA of those Moving Averages (Signal Line) and plots that difference between the two lines as a histogram which oscillates above and below a center Zero Line. The histogram is used as a good indication of a security's momentum. Mathematically expressed as; macd = ma(source, fast_length) – ma(source, slow_length) signal = ma(macd, signal_length) histogram = macd – signal where exponential moving average (ema) is in common use as a moving average (ma) fast_length = 12 slow_length = 26 signal_length = 9 The MACD indicator is typically good for identifying three types of basic signals ; Signal Line Crossovers A Signal Line Crossover is the most common signal produced by the MACD. On the occasions where the MACD Line crosses above or below the Signal Line, that can signify a potentially strong move. The standard interpretation of such an event is a recommendation to buy if the MACD line crosses up through the Signal Line (a "bullish" crossover), or to sell if it crosses down through the Signal Line (a "bearish" crossover). These events are taken as indications that the trend in the financial instrument is about to accelerate in the direction of the crossover. Zero Line Crossovers Zero Line Crossovers occur when the MACD Line crossed the Zero Line and either becomes positive (above 0) or negative (below 0). A change from positive to negative MACD is interpreted as "bearish", and from negative to positive as "bullish". Zero crossovers provide evidence of a change in the direction of a trend but less confirmation of its momentum than a signal line crossover Divergence Divergence is another signal created by the MACD. Simply, divergence occurs when the MACD and actual price are not in agreement. A "positive divergence" or "bullish divergence" occurs when the price makes a new low but the MACD does not confirm with a new low of its own. A "negative divergence" or "bearish divergence" occurs when the price makes a new high but the MACD does not confirm with a new high of its own. A divergence with respect to price may occur on the MACD line and/or the MACD Histogram Moving Average Crossovers , another hidden signal that MACD Indicator identifies Many traders will watch for a short-term moving average to cross above a longer-term moving average and use this to signal increasing upward momentum. This bullish crossover suggests that the price has recently been rising at a faster rate than it has in the past, so it is a common technical buy sign. Conversely, a short-term moving average crossing below a longer-term average is used to illustrate that the asset's price has been moving downward at a faster rate and that it may be a good time to sell. Moving Average Crossovers in reality is Zero Line Crossovers, the value of the MACD indicator is equal to zero each time the two moving averages cross over each other. For easy interpretation by trades, Zero Line Crossovers are simply described as positive or negative MACD False signals Like any forecasting algorithm, the MACD can generate false signals. A false positive, for example, would be a bullish crossover followed by a sudden decline in a financial instrument. A false negative would be a situation where there is bearish crossover, yet the financial instrument accelerated suddenly upwards What is “MACD-X” and Why it is “More Than MACD” In its simples form, MACD-X implements variety of different calculation techniques applied to obtain MACD Line, ability to use of variety of different sources , including Volume related sources, and can be plotted along with MACD in the same window and all those features are available and presented within a single indicator, MACD-X Different calculation techniques lead to different values for MACD Line, as will further discuss below, and as a consequence the signal line and the histogram values will differentiate accordingly. Mathematical calculation of both signal line and the histogram remain the same. Main features of MACD-X ; 1- Introduces different proven techniques applied on MACD calculation , such as MACD-Histogram, MACD-Leader and MACD-Source, besides the traditional MACD (MACD-TRADITIONAL) • MACD-Traditional , by Gerald Appel It is the MACD that we know, stated as traditional just to avoid confusion with other techniques used with this study • MACD-Histogram , by Thomas Aspray The MACD-Histogram measures the distance between MACD and its signal line (the 9-day EMA of MACD). Aspray developed the MACD-Histogram to anticipate signal line crossovers in MACD. Because MACD uses moving averages and moving averages lag price, signal line crossovers can come late and affect the reward-to-risk ratio of a trade. Bullish or bearish divergences in the MACD-Histogram can alert chartists to an imminent signal line crossover in MACD The MACD-Histogram represents the difference between MACD and its 9-day EMA, the signal line. Mathematically, macdx = macd - ma(macd, signal_length) Aspray's contribution served as a way to anticipate (and therefore cut down on lag) possible MACD crossovers which are a fundamental part of the indicator. Here come a question, what if repeat the same calculations once more (macdh2 = macdh - ma(macdh, signal_length), will it be even better, this question will remain to be tested • MACD-Leader , by Giorgos E. Siligardos, PhD MACD Leader has the ability to lead MACD at critical situations. Almost all smoothing methods encounter in technical analysis are based on a relative-weighted sum of past prices, and the Leader is no exception. The concealed weights of MACD Leader are such that more relative weight is used in the more recent prices than the respective weights used by the components of MACD. In effect, the Leader expresses more changes in average price dynamics for the recent price movement than MACD, thus eventually leading MACD, especially when significant trend changes are about to take place. Siligardos creates two less-laggard moving averages indicators in its formula using the same periods as follows Indicator1 = ma(source, fast_length) + ma(source - ma(source, fast_length), fast_length) Indicator2 = ma(source, slow_length) + ma(source - ma(source, slow_length), slow_length) and then take the difference: Indicator1 - Indicator2 The result is a new MACD Leader indicator macdx = macd + ma(source - fast_ma, fast_length) - ma(source - slow_ma, slow_length) • MACD-Source , a custom experimental interpretation of mine , MACD Source, presents an application of MACD that evaluates Source/MA Ratio, relatively with less lag, as a basis for MACD Line, also can be expressed as source convergence/divergence to its moving average. Among the various techniques for removing the lag between price and moving average (MA) of the price, one in particular stands out: the addition to the moving average of a portion of the difference between the price and MA. MACD Source, is based on signal length mean of the difference between Source and average value of shot length and long length moving average of the source (Source/MA Ratio), where the source is actual value and hence no lag and relatively less lag with the average value of moving average of the source . Mathematically expressed as, macdx = ma(source - avg( ma(source, fast_length), ma(source, slow_length) ), signal_length) MACD Source provides relatively early crossovers comparing to MACD and better momentum direction indications, assuming the lengths are set to same values For further details, you are invited to check the following two studies, where the first seeds were sown of the MACD-Source idea Price Distance to its Moving Averages study, adapts the idea of “Prices high above the moving average (MA) or low below it are likely to be remedied in the future by a reverse price movement", presented in an article by Denis Alajbeg, Zoran Bubas and Dina Vasic published in International Journal of Economics, Commerce and Management First MACD like interpretation comes with the second study named as “ P-MACD ”, where P stands for price, P-MACD study attempts to display relationship between Price and its 20 and 200-period moving average. Calculations with P-MACD were based on price distance (convergence/divergence) to its 200-period moving average, and moving average convergence/divergence of 20-period moving average to 200-period moving average of price. Now as explained above, MACD Source is a one adapted with traditional MACD, where Source stands for Price, Volume Indicator etc, any source applicable with MACD concept 2- Allows usage of variety of different sources, including Volume related indicators The most common usage of Source for MACD calculation is close value of the financial instruments price. As an experimental approach, this study will allow source to be selected as one of the following series; • Current Close Price (close) • Average of High, Low, and Close Price (hlc3) • On Balance Volume (obv) • Accumulation Distribution (accdist) • Price Volume Trend (pvt) Where, -Current Close Price and Average of High, Low, and Close Price are price actions of the financial instrument - Accumulation Distribution is a volume based indicator designed to measure underlying supply and demand - On Balance Volume (OBV) , is a momentum indicator that measures positive and negative volume flow - Price Volume Trend (PVT) is a momentum based indicator used to measure money flow 3- Can be plotted along with MACD in the same window using the same scaling Default setting of MACD-X will display MACD-Source with Current Close Price as a source and traditional MACD can be plotted eighter as a companion of MACD-X or can be selected to be plotted alone. Applying both will add ability to compare, or use as a confirmation of one other In case, traditional MACD Is plotted along with MACD-X to avoid misinterpreting, the lines plotted, the area between MACD-X Line and Signal-X Line is highlighted automatically, even if the highlight option not selected. Otherwise highlight will be applied only if that option selected 4- 4C Histogram Histogram is plotted with four colors to emphasize the momentum and direction 5- Customizable Additional to ability of selecting Calculation Method, Source, plotting along with MACD, there are few other option that allows users to customize the MACD-X indicator Lengths are configurable, default values are set as 12, 26, 9 respectively for fast, slow and smoothing length. Setting lengths to 8,21,5 respectively Is worth checking, slower length moving averages will lead to less lag and earlier reaction to price actions but yet requires a caution and back testing before applying Highlight the area between MACD-X Line and Signal-X Line, with colors emphasising the direction Label can be added to display Calculation Method, Source and Length settings, the aim of this label is to server only as a reminder to trades to be aware of settings while they are occupied with charts, analysis etc. Here comes another question, which is of more importance having the reminder or having the indicators with multi timeframe feature? Build-in Multi Time Frame features of Pine is not supported when labels and lines introduced in the script, there are other methods but brings complexity. To be studied further, this version will be with labels for time being. Epilogue MACD-X is an alternative variant of MACD, the insight/signals provided by MACD are also applicable to MACD-X with early and clear warnings for the changes in the trend. If MACD is essential to your analysis, then it is my guess that after using the MACD-X for a while and familiarizing yourself with its unique character and personality, you will make it an inseparable companion to other indicators in your charts. The various signals generated by MACD/MACD-X are easily interpreted and very few indicators in technical analysis have proved to be more reliable than the MACD, and this relatively simple indicator can quickly be incorporated into any short-term trading strategy Disclaimer : Trading success is all about following your trading strategy and the indicators should fit within your trading strategy, and not to be traded upon solely The script is for informational and educational purposes only. Use of the script does not constitutes professional and/or financial advice. You alone the sole responsibility of evaluating the script output and risks associated with the use of the script. In exchange for using the script, you agree not to hold dgtrd TradingView user liable for any possible claim for damages arising from any decision you make based on use of the script
Pine Script® indicator
by dgtrd
163
MACD+ Alerts [SystemAlpha]This is the alert companion of the MACD+ Strategy . Instead of using just the normal crossovers, we use trend filters, trailing stop loss and take profit targets. This strategy was developed for crypto, forex and stocks on daily timeframe but feel free to experiment on 15 minutes or higher using heikin ashi or normal candles. In this alert you have a choice of: Trend Filters: - Average Directional Index ( ADX ) – buy when price is trend is up and sell when trend is down. - Moving Average (MA) – buy when price close above the defined moving average and sell when price close below moving average - Parabolic SAR – buy when SAR is above price is above price and sell when SAR is below price. - All - Use ADX , MA and SAR as filters For MA Filter , you can use the “TF MA Type” and "TF MA Period" parameter to select Simple or Exponential Moving Average and length. Stop Loss: - Average True Range (ATR) – ATR % stop as trailing stop loss. - Parabolic SAR ( SAR ) – Parabolic SAR adapted as trailing stop loss. For ATR , you can use the “ATR Trailing Stop Multiplier” parameter to set an initial offset for trailing stop loss. Take Profit Target: - Average True Range (ATR) – ATR % stop as trailing stop loss. - Standard % – Percent as target profit For ATR , you can use the “ATR Take Profit Multiplier” parameter to set an initial offset for trailing stop loss. Additional feature include: - Regular and Hidden Divergence display and alerts Alerts: When creating alerts use “Once Per Bar Close” parameter for Long and Short and “Once Per Bar” for Close, Trailing Stop, Take Profit and Divergence. TradingView Links: Strategy: MACD: How to use: 1. Apply the script by browsing through Indicators --> Invite-Only scripts and select the indicator 2. Once loaded, click the gear (settings) button to select/adjust the parameters based on your preference. 3. Wait for the next BUY or SELL signal to enter the trade! Disclaimer: The indicator and signals generated do not constitute investment advice; are provided solely for informational purposes and therefore is not an offer to buy or sell a security; are not warranted to be correct, complete or accurate; and are subject to change without notice.
Pine Script® indicator
by systemalphatrader
MACD Crossover Trend IndicatorThis is a very simple " the trend is your friend " indicator - if you are consistent! How this indicator works: This indicator detects MACD Crossovers based on the current trend. It checks wether the current close price is above or below the 200 EMA and therefore decides whether we are in an up- or down trend. UP-TREND: If the price is above the EMA200, the MACD is below 0 and crosses up the signal line, then this is a BUY signal! DOWN-TREND: If the price is below the EMA200, MACD is above 0 and crosses down the signal line, then this is a SELL signal! You can also add an alert, that keeps you informed, once one of these scenario happens for a certain pair! With this indicator you will never enter against the trend. Have fun! :)
Pine Script® indicator
by mastixmc
13
MACD Crossover Trend IndicatorHow this indicator works: This indicator detects MACD Crossovers based on the current trend. It checks wether the current close price is above or below the 200 EMA and therefore decides whether we are in an up- or down trend. UP-TREND: If the MACD is below 0 and crosses up the signal line, then this is a BUY signal! DOWN-TREND: If the MACD is above 0 and crosses down the signal line, then this is a SELL signal! How to trade this: First rule: Be consistent! Second rule: You will have lost trades and losing streaks - deal with it! First set the SL slightly below the last significant low (eventually add/subtract the ATR value to/from it) Then adjust the TP and ALWAYS use a RR ratio of 1.5. NEVER get out of the trade earlier Take every possible trade! Important: Money management is key... so be consistent! Have fun! :)
Pine Script® indicator
by mastixmc
4
STC w/ Zero Lag MACDSTC + Zero Lag MACD (includes regular MACD also) What I added here was two other variables The Schaff Trend Cycle working with Zero Lag Macd to give you double confirmation on your Higher Time Frame entries such as 4H, 6H, and Daily. You may also turn on regular MACD instead of Zero Lag, if you'd like. ***Red Dot for Bear ***Green Dot for Bull ***Higher Confirmation is: Red Dot + Red MACD for Bear Green Dot + Green MACD for Bull More confirmation to come! CHEERS If you would like to get in contact with me, please reach out to me via DM here, or Twitter. It's the best way to get in touch with me in regards to indicators, and market analysis. Enjoy! -RingoKid
Pine Script® indicator
by FloFiBots
4
Elder-Keltner-Impulse-MA Study by STTAStudy Name: Elder-Keltner-Impulse-MA Study by STTA English: This indicator shows in a combined way three Keltner Channels with EMA21 and multiplier 1,3,5, the Elder Impulse System and a short EMA 11 to recognize the valuation zone, according to various strategies of Dr. Alexander Elder. This indicator can be applied on all symbols. Inputs: displayed symbol Settings: Elder Force Index (EFI) -EIF MACD Length -EIF MACD Slow Length -EIF MACD Signal Length -EIF EMA Length EMA Short Length Keltner Channels (KC) -KC MA Length -KC Multiplier1-3 -KC Source -KC Type -KC Bands Style Outputs: -EIF Bar Colors -KC Upper1-3 channel upper and lower Lines -MA Short
Pine Script® indicator
by Trading-Software-Consulting
1
Trade4Wealth Software-IITrade4wealth Software-II DESCRIPTION: This Alert indicator utilizes the Heiken Ashi with non-lag EMA was a scalping and intraday trading. There is also included filtering on MACD direction and trend direction as indicated by two MA: SMA (20) and EMA (50). The Heiken Ashi candles are great as price action trending indicator, they shows smooth strong and clear price fluctuations with price. Financial Markets: NSE/BSE/MCX > Optimised settings for 3 min, 5 min and 15 min Time Frame. Indicators used in calculations: > MACD 2 colour (5,9,3) > EMA, period 50 > SMA, period 20 > Non lag EMA , period 20 Generate Alerts use the following Trading Rules: > Heiken Ashi with non-lag dot > Trade only in direction of the trend. > UP trend : MA 20 period is above EMA 50 period. > Down trend : MA 20 period is below EMA 50 period. How to use: > Use software with Default Settings. For Buy : > If 20 SMA (i.e. Green Line) Crosses 50 EMA (i.e. Red Line) from lower to upper side than Buy. > Zone & Parabolic Sar both must be Green for Buy. For Sell : > If 20 SMA (i.e. Green Line) Crosses 50 EMA (i.e. Red Line) from upper to lower side than Sell. > Zone & Parabolic Sar both/ must be Red for Sell. HINTS: - Good positions occur when MACD crosses the Zero line. - Large Heikin Ashi candles with small wicks in direction of trend are good strong trends. How to get access: Please click on the link in the signature or send me a private message to get access.
Pine Script® indicator
by AMARMANDEKAR
4
Z-SCORE Currency Strength Indicator by Lukas"you must have" indicator if you trade Forex major pairs. So far this is the most reliable script i have for trade forex pairs. This indicator will give us information of momentum, strength and cycle. What i like about Z-SCORE, it's calculate price and volume. Setting : 1. Set Color 0 and Color 2 into thick line, it will give you strength information. The strength information is base on cumulative Currency price Vs. 7 others currency, When Source Price above EMA and Above LWMA "Color 0" active, above EMA "Color 2" active, below EMA "Color 1" active so it's important to set the thickness. 2. You can set EMA length as thickness filter 3. You can set Signal line between EMA and LWMA EMA = smoother LWMA = reactive Strong currency signal when Color 0 active and they are on upward movement, crossing -80 or above 0 Weak Color 1 active and they are on downward movement, crossing 80 or below 0 Trade Strong Vs. Weak Any feedback are welcome. Hope it useful! I also have unpublished OBV and smooth RSI indicator, OBV can give you earlier bull/bear sign, let me know if you are interested~ Thank you.
Pine Script® indicator
by lukascg94
9
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
ALT_FLAMES00.00 - alt-flames component breakdown: a) various combinations of EMA crossovers taken from the primeval_series to create a complete sequence of background colored-lines that subdivide into a bullish portion and a bearish portion for directional identification b) specific macd crossovers for predictive power in the form of directional flames located directly above the chart price (navy & yellow flames) c) unique fast & slow rsi combinations for momentum + strength in the form of power flames located directly above the chart price (orange, red, green, & lime flames) when the alternation of flames are used in concert with the sequence of background colors, one can identify impending explosive price action, can better navigate through periods of slower activity, identify where they are currently in the trend's lifecycle and, MOST IMPORTANTLY, improve the TIMELINESS of entry and exit strategies 00.01 - primeval_series - overview the primeval_series is a group of transformed universally-renowned mathematical constants that have been transformed and embedded into a series of EMAs each of these EMAs relates in some meaningful way to the "original wave' or 'wave_0': i.e. the wave that began at t=0, when humanity first made technological progress the transformations made ensure that the inherent linkages to the original wave remain intact while being applicable to the structures inherent to indicator development for the purposes of the alt-flames indicator, certain numbers selected from the primeval_series exist and are the basis of each ema , MACD and RSI calculation made herein 00.02 - alt-flames - best practices, and ideal targets for best use: start with the daily timeframe for broad pattern, then use hourly going forward ideal for swing trades, shorter-term options, and stocks that already have well-established uptrends, but have also started consolidating for 1+ week patience is required to catch the ideal break, so best to use mildly OTM calls with at least 2 weeks on them before expiry. for great use: pick out stocks that have recently broken out heavily from their pivot . Do not enter until the retracement from the top has a defined local low for average use: any sort of intraday play. this tool is meant for swing trades and sustained breakouts. picking out significant bottom reversals. the MACD portion is not geared for big reversals here. Rather, it is complementary to the EMA sequences, which are at the core of the indicator not useful for: shorting stocks that are trending downward or that are in sideways trends
Pine Script® indicator
by UnknownUnicorn5511258
5
MACD Binary Strategy by Hashtag_binary MACD Binary Options Strategy is an trend momentum system, It's based on the double MACD in the sub window below the chart. - Markets: Stocks, Indicies, Metals, Forex. This binary strategy works good on the Indicies ( S&P 500, DAX, FTSE, ). - MACD Binary System il also good as trading system for to trade. - Time Frame 30 min or higher ( best 4H). - Expires Time 3 bars after. (90 min, 180 min, 720 min, 3 daily). Rules MACD Binary Options Strategy Buy Call: - EMA 6 over EMA 13; - MACD ( 5, 15, 1) crosses upward MACD ( 12,26,1 ); - MACD (5,15, 1) over level 0. Buy Put: - EMA 6 under EMA 13; - MACD ( 5, 15, 1) crosses downward MACD ( 12,26,1 ); - MACD (5,15, 1) under level 0. The same conditions for entry trade. Exit position options: - When MACD (5, 15, 1,) crosses in opposite direction MACD (12,26,1); - When exponential moving average crosses in opposite direction; - Make profit with ratio 1:3 stop loss. - Initial stop loss at the previous swing.
Pine Script® indicator
by AlgoriTrading677
1
P-MACD by DGTPrice and Moving Averages Convergence/Divergence, shortly named as P-MACD P-MACD is a trend-following momentum indicator that shows the relationship between Price and Long-term Moving Average (PMACD), and the relationship between two Moving Averages (MAMACD). P-MACD is composed of two lines, and an histogram, showing price distance (convergence/divergence) to its Long-term MA (PMACD), showing short-term MA distance (convergence/divergence) to long-term MA (MAMACD), and a histogram showing the difference (momentum) between the PMACD and MAMACD The PMACD is calculated by dividing the Price to Long-term Moving Average (200-period SMA/EMA) and finally smoothed with 9-period SMA/EMA - PMACD Line Formula : (Price / SlowMovingAverage -1) * 100 and smoothed with 9-period SMA/EMA The MAMACD is calculated by dividing the Short-term Moving Average (such as 20 SMA/EMA) to the Long-term Moving Average (such as 200-period SMA/EMA) - MAMACD Line Formula : (FastMovingAverage / SlowMovingAverage -1) * 100 The Histogram is calculated by subscripting PMACD and MAMACD - Formula : PMACD - MAMACD Optional Trend Cloud calculated based on fast and slow version of MAMACD What to look for: - Line Crosses : PMACD Line can function as a trigger(signal) for buy and sell signals. Buy when the PMACD crosses above the MAMACD line and sell - or short - when the PMACD crosses below the MAMACD line - Base Crosses : PMACD and/or MAMACD crosses above or below Baseline is another way to indicate the trend and momentum. MAMACD crosses of Baseline, MAMACD positive or negative, reflects short-term moving average crosses the long-term moving average and similarly, PMACD crosses of BaseLine, PMACD positive or negative, reflects price crosses a long-term moving average - Momentum : P-MACD helps investors understand whether the bullish or bearish movement in the price is strengthening or weakening displayed with a histogram which graphs the distance between the PMACD and MAMACD. Additionally, upward momentum is confirmed with a bullish crossover, which occurs when PMACD and/or MAMACD crosses above Baseline. Conversely, downward momentum is confirmed with a bearish crossover, which occurs when PMACD and/or MAMACD crosses below Baseline - Distance : Prices high above the moving average (MA) or low below it are likely to be remedied in the future by a reverse price movement. The more distant the PMACD is above or below its baseline indicates that the distance between the Price and its SMA is growing (regarding PMACD, You may find a detailed article explained in “Price Distance to its MA” indicator by DGT) . Similarly the more distant the MAMACD is above or below its baseline indicates that the distance between the two SMAs is growing - Trend : A rising P-MACD indicates an uptrend, while a declining P-MACD indicates a downtrend MACD vs. P-MACD MACD measures the relationship between two MAs, while the P-MACD measures both the relationship between price and its MA, and the relationship between two MAs. MAMACD Line of P-MACD If set to same moving average type and same lengths as in MACD will produce the same line as MACD line, only values are represented as percentage with MAMACD. Both measure momentum in a market, but, because they measure different factors, they differentiate from each other even if they have similarities in presentation. P-MACD provides additional insights, not only to MA relation but also to Price and MA relation Warning : Moving Average are calculated based on past prices, so they are lagging. The longer the time period for the moving average, the greater the lag as well as less sensitive to price changes. This study implements usage of 200-period long-term moving average, which implies that the P-MACD will provide insight especially for long-term trades, more suited for long-term trades, usage of P-MACD for short-term trades is recommend with lower timeframes (1H or lower). Indicators aim to generate a potential signal/indication of an upcoming opportunity, but, the Indicators themselves do not guarantee the future movement of a given financial instrument, and are most useful when used in combination with other techniques. Trading success is all about following your trading strategy and the indicators should fit within your trading strategy, and not to be traded upon solely Disclaimer : The script is for informational and educational purposes only. Use of the script does not constitutes professional and/or financial advice. You alone the sole responsibility of evaluating the script output and risks associated with the use of the script. In exchange for using the script, you agree not to hold dgtrd tradingview user liable for any possible claim for damages arising from any decision you make based on use of the script
Pine Script® indicator
by dgtrd
13
Price Distance to its MA by DGTPrices high above the moving average (MA) or low below it are likely to be remedied in the future by a reverse price movement as stated in an Article by Denis Alajbeg, Zoran Bubas and Dina Vasic published in International Journal of Economics, Commerce and Management Here comes a study to indicate the idea of this article, Price Distance to its Moving Averages (P/MA Ratio) The analysis expressed in the paper indicates that there is a connection between the distance of the prices to moving averages and subsequent returns : portfolios of stocks with lower prices to moving averages generally outperformed portfolios of stocks with higher prices to moving averages. This “overextended” effect is more pronounced when using shorter moving averages of 20 and 50 days, and is especially strong in short-term holding periods like one and two weeks. The highest annual returns are recorded when buying in the range of 0-5% below shorter moving averages of 20/50 days, and 0-10% below longer moving averages of 100/200 days. However, buying very far below almost all moving averages on almost all holding periods produces the lowest returns. The concept of this study recognizes three different modes of action. In a clearly established upward trend traders should be buying when prices are near or below the MA line and selling when prices move too far above the MA. Conversely, in downward trend stocks should be shorted when reaching or going above the moving average and covered when they drop too far below the MA line. In a sideways movement traders are advised to buy if the price is too low below the moving average and sell when it goes too far above it Short-term traders can expect to outperform in a one or two week time window if buying stocks with lower prices compared to their 20 and 50 SMA/EMA, one to two-week holding periods is quite high, ranging from 72,09% to 90,61% for the SMA(20, 50) and 85,03% to 87,5% for the EMA(20, 50). The best results for the SMA 20 and 50, on average, are concentrated in the region of 0-5% below the MA for the majority of holding periods. Buying very far below almost all MA in almost all holding periods turns out to be the worst possible option Candle patterns, momentum could be used in conjunction with this indicator for better results. Try Colored DMI and Ichimoku colored SuperTrend by DGT
Pine Script® indicator
by dgtrd
41
Bitcoin CME Retail vs Professionals MACD This is an interesting study using the data provided by the Bitcoin CME Commitment of Traders report. The MACD plot the difference between the Retail Traders positions and the Professional Traders positions. The general idea is that Professional Traders have a better read on the market than Retail Traders. The signal line helps to identify the trend that it is moving in. I believe that this plot helps to visualize the overall market sentiment better than the raw COT data. Try it out and let me know what you think!
Pine Script® indicator
by AzureKn1ght
2