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Momentum Commitment Delta (MCD)
Momentum Commitment Delta (M C D)
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What it is
M C D fuses five micro-structure clues into one 0-to-1 score that says, “how hard are traders actually leaning on this move?”
1. Body-Delta Momentum – average net candle body direction.
2. Volume Commitment – up-volume ÷ down-volume over the same window.
3. Wick Compression – shrinking upper/lower wicks = clean conviction.
4. Candle Sequencing – rewards orderly, staircase-style body growth.
5. Pin Ratio – where the close pins inside each candle’s range.
The five factors are multiplied, then auto-normalized so extremes always land near 0 / 1 on any symbol or timeframe.
I recommend tweaking the settings to fit your edge, the pre-loaded settings may not be suitable for most traders. The MCD works on all timeframes as well :)
⸻
How to read basic signals
• Fresh cross above 0.70 → often the birth of a real breakout.
• Cluster of > 0.70 bars → “commitment lock,” pull-backs usually shallow.
• Price makes new high while M C D doesn’t → beware...
• Cross back below 0.30 after a run → momentum is out of fuel.
⸻
Because M C D is multiplicative, it’s hard to hit the extremes—so when the bars light lime green, the print is usually telling the truth.
I personally use the MCD to identify the peak of a high-conviction range, NOT a breakout. If a bar prints over 0.70 (green) and then a range forms off of the bar which exceeded 0.70, the breakout has a high chance to be explosive, regardless of what MCD reads at the breakout inflection point.
Play around with it, im sure there are plenty of other patterns.
Disclaimer: The Momentum Commitment Delta (MCD) indicator is provided strictly for educational and informational purposes. It does not constitute financial or investment advice, nor is it a recommendation to buy or sell any security. Trading involves substantial risk, and you should always perform your own due diligence and consult a qualified financial professional before making any trading decisions. Past performance is not indicative of future results.
⸻
What it is
M C D fuses five micro-structure clues into one 0-to-1 score that says, “how hard are traders actually leaning on this move?”
1. Body-Delta Momentum – average net candle body direction.
2. Volume Commitment – up-volume ÷ down-volume over the same window.
3. Wick Compression – shrinking upper/lower wicks = clean conviction.
4. Candle Sequencing – rewards orderly, staircase-style body growth.
5. Pin Ratio – where the close pins inside each candle’s range.
The five factors are multiplied, then auto-normalized so extremes always land near 0 / 1 on any symbol or timeframe.
I recommend tweaking the settings to fit your edge, the pre-loaded settings may not be suitable for most traders. The MCD works on all timeframes as well :)
⸻
How to read basic signals
• Fresh cross above 0.70 → often the birth of a real breakout.
• Cluster of > 0.70 bars → “commitment lock,” pull-backs usually shallow.
• Price makes new high while M C D doesn’t → beware...
• Cross back below 0.30 after a run → momentum is out of fuel.
⸻
Because M C D is multiplicative, it’s hard to hit the extremes—so when the bars light lime green, the print is usually telling the truth.
I personally use the MCD to identify the peak of a high-conviction range, NOT a breakout. If a bar prints over 0.70 (green) and then a range forms off of the bar which exceeded 0.70, the breakout has a high chance to be explosive, regardless of what MCD reads at the breakout inflection point.
Play around with it, im sure there are plenty of other patterns.
Disclaimer: The Momentum Commitment Delta (MCD) indicator is provided strictly for educational and informational purposes. It does not constitute financial or investment advice, nor is it a recommendation to buy or sell any security. Trading involves substantial risk, and you should always perform your own due diligence and consult a qualified financial professional before making any trading decisions. Past performance is not indicative of future results.
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此腳本以閉源形式發佈。 不過，您可以自由且不受任何限制地使用它 — 在此處了解更多資訊。
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這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。
受保護腳本
此腳本以閉源形式發佈。 不過，您可以自由且不受任何限制地使用它 — 在此處了解更多資訊。
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。