MACD/EMA/SMA/Ichimoku Confluence StrategyThis strategy uses a number of chart indicators to provide a Bullish/Bearish signal. Using a combination of the 200 SMA, the 20 EMA, the MACD and the Ichimoku cloud, the strategy logic will adjust the amount of confluence required between the indicators depending on how bullish or bearish the chart is looking. The logic looks for the following:
- Are we above or below the 200 SMA?
- Are we above or below the 20 EMA?
- Have we had a bullish MACD cross?
- Where are we in relation to the Ichimoku cloud?
If the coin is below the 200 SMA, then the strategy will only give a buy signal if the coin closes a candle above the 20 EMA AND the MACD is bullish and either the Ichimoku cloud is green, or the coin is above the Ichimoku cloud (regardless of colour).
If the coin is above the 200 SMA, Then the strategy will give a buy signal if the coin closes a candle above the 20 EMA AND the MACD is bullish and the coin is either IN the cloud (not necessarily above it) or the cloud is green.
The reverse is true for a sell signal, i.e. when the coin is above the 200 SMA it must close a candle below the Ichimoku cloud and be bearish in relation to the 20 EMA and MACD. If it is below the 200 SMA, then the strategy will give a sell signal if the the EMA/MACD conditions are true and the coin enters the cloud.
This strategy gives a fairly conservative signal for entry and exit points, but is fairly successful across a number of time frames, both short term and long term. As with all my strategies, I only include LONG entries and closes, not SHORT entries (as I find they make for inaccurate backtesting).
Please feel free to like, share, critique and suggest any improvements to this strategy. All feedback, positive and negative, is appreciated.
在腳本中搜尋"macd"
Improved Moving Average Convergence/DivergenceSimple change to the standard MACD formula I like to use that slow it down and reduces the amount of false signals while allowing strong/good signals through,
Pearson's R Convergence DivergenceThis script calculates the convergence divergence and breakouts from the deviations for a fast and slow linear regression slope.
This can be used to predict major market moves before they happen.
For users familiar with MacD, the blue line is similar to the MacD line and the orange line the signal.
The difference is this is not a moving average comparison but a comparison between Pearson's R values.
-0.1 (positive direction)
0.1 (negative direction)
This is why the colors look inverse for a typical MacD.
How to use this:
The idea is that when both trends converge in the 0.8 or -0.8 range and you see a breakout cross occur on either line then the price has a high likelihood of reversing its current trend.
If you see a green cross it means the top of the linear regression for the 'fast' or 'slow' linear regression deviation was broken by the current price. This can signify that upward movement is coming soon.
On the flip side a red cross means the bottom of the linear regression for the 'fast' or 'slow' linear regression deviation was broken by the current price. This can signify that downward movement is coming soon.
These crosses mean a lot more if the pearson's R value is already maxed out near 0.8 or -0.8.
This indicator works because the more sure a trend becomes the more likely it is to break as more traders see the pattern.
The histogram colors do not mean much being 'red' or 'green', what you want to look for is when the histogram starts to approach the 0 mark. This signifies that both linear regression trends are about to reach their peak before reversing trend. So don't confuse this with how you might read the MacD even though it looks very similar. The histogram sloping towards the 0 line will give you a clue how long it might take before the reversal occurs .
Please PM me if you have any questions, and enjoy!
MACD Alert [All MA in one] [Smart Crypto Trade (SCT)]This code is a gift from "Smart Crypto Trade (SCT)" group
MACD indicator contains 3 EMA, I think one of the best usage of MACD is trend detection and divergences.
In our indicator, you can select the type of Moving averages that used in macd.
You can using "MACD" based on several types of moving averages including:
Exponential Moving Average ( EMA )
Volume-Weighted Moving Average ( VWMA )
Simple Moving Average ( SMA )
Weighted Moving Average ( WMA )
Exponentially Weighted Moving Average (RMA) that used in RSI
Smoothed Moving Average ( SMMA )
Arnaud Legoux Moving Average ( ALMA )
Double EMA ( DEMA )
Double SMA (DSMA)
Double WMA (DWMA)
Double RMA (DRMA)
Triple EMA ( TEMA )
Triple SMA (TSMA)
Triple WMA (TWMA)
Triple RMA (TRMA)
Linear regression curve Moving Average ( LSMA )
Variable Index Dynamic Average ( VIDYA )
Fractal Adaptive Moving Average ( FRAMA )
In other words we tried to collect all the most popular MAs in our MACD indicator.
In addition, you can use four types of alert or alarm conditions for detection LONG or SHORT positions and trends. For this, you must set an alert in alert tab and set the condition based on four defaults conditions.
Enjoy
MACD - STOCH - RSI This indicator combines the
- MACD w/ Volume Conditions
- STOCHASTIC
- RSI
All into one place, to help find confluences between popular convergence / divergence indicators.
It's primary use is the histogram of the MACD.
The colors change whether or not the current bar is higher or lower than the previous.
Lighter shade signifies the bars are getting smaller.
You can also enable a feature which will change the color of the histogram depending on the volume.
There are 2 conditions which can be met which signify ' Increasing Volume ' and ' Above Average Volume '.
If the MACD is above 0,
Light Blue signifies increasing volume.
Dark Blue signifies above average volume
If the MACD is below 0,
Light Purple signifies increasing volume.
Dark Purple signifies above average volume.
Having volume conditions within the histogram are meant to act as confluence. For example, if the histogram is
rising and light blue or dark blue bars are shown, this could hint towards a larger move to the upside if previous
upswings on the histogram were only green.
Increased volume near the peak of a move can also signify lots of orders coming into the market in hopes
of reversing the current trend or starting a correction.
formula:
Avg of volume over past 10 bars * 1.5 = increasing volume
Avg of volume over past 10 bars * 2 = Above Average Volume
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The RSI and STOCHASTIC have been run through a custom function which moves the values. The middle line is now 0.
Where on most RSI and STOCHASTIC indicators the middle line can be considered 50, with overbought levels nearing 70
and oversold levels around 30.
On the M.S.R , the RSI overbought levels are by default 20, and oversold -20.
I've done this because for myself it was easier to understand RSI was becoming oversold if it went below 0, not 50.
The same function also applies to the STOCHASTIC indicator.
The RSI and STOCHASTIC can also be displayed together to help see the conditions of both indicators at once.
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Traders Dynamic Index Indicator Alert v0.1 by JustUncleLThis is a trend trading indicator+alert utilising the Traders Dynamic Index (TDI), Price Action Channel (PAC) and Heikin Ashi candles.
About 6months ago I came across the use of TDI in "E.A.S.Y. Method" that I found in forexfactory forums: www.forexfactory.com
and I was able to set up a chart based on the specifications by using Kurbelklaus scripts. However, I found that the alerts were being generated one or two bars too late, so at that time I was not successful using it with Binary Options. A few months later I found a variation of the method in the forecfactory forums which is able to generate the alerts a bit earlier, so this indicator is a modification of that early detection version.
The indicator can optionally use Heikin Ashi candles only for all it's calculation. I would recommend viewing the chart with Heikin Ashi candles, these smooth out the trends and makes trends very clear.
I found that this method it works good with most currency pairs or commodities and with 5min+ timeframe charts. I would suggest expiry of 2 to 6 candles.
ALERT GENERATION:
=================
The TDI (Traders Dynamic Index)
---------------------------------------------
Volatility Band VB(34), color: Blue, buffer: UpZone, DnZone
Relative Strength Index RSI(13)
RSI PRICE LINE (2), color: Green, buffer: mab
RSI TRADE SIGNAL LINE (7), color: Red, buffer: mbb
MARKET BASE LINE MID VB(34), color: Orange, buffer: mid
Indicator SignalLevels:
-------------------------------
RSI_OversoldLevel : 22 (normally: 32)
RSI_OverboughtLevel : 78 (normally: 68)
Alert Conditions:
-----------------------
Strong Buy : yellow
Medium Buy : aqua
Weak Buy : blue
Strong Sell : fuchsia
Medium Sell : purple
Weak Sell : black
Hints on How to use:
----------------------------
- When a Medium or Strong alert is generated and MACD histogram colour matches the direction
of the alert (optional auto filter), then place trade in direction of alert candle and MACD.
- I use the multi-Hull MA's for overall trend direction confirmation.
- Best positions normally occur near the MACD(5,15,1) Histogram crossing the zero line.
- The optional coloured Dots along the bottom of the indicator represent the first alert
of this type that was generated in this sequence.
- It is advisable to trade in the direction of the main trend as indicated the HULL MA red cloud:
if red cloud underneath PAC then BULLISH trend, if red cloud above PAC then BEARISH trend.
- Selecting the HeiKin Ashi candles does affect the MACD and MA caculations, so if you select
normal candles the result chart will change. You can still Optionally select to use Heikin Ashi
for calculations.
- When using the Heikin Ashi candles, a good buy entry is indicated by long top wick and no bottom wick
for bull (green) candles and good sell entry is indicated by long bottom wick and no top wick for
bear (red) candles.
- When the MACD histogram is flat and close to zero line,
this indicates a ranging market, do NOT trade when this occurs.
- When the PAC channel on the main chart is spread apart widely, this is an indication
of extreme volatility and choppy chart, do NOT try to trade during these periods.
A choppy chart is also indicated by Heikin Ashi candles with long wicks on both sides
of the candles.
- You can specify what strength level Alerts are generated (default 2):
Level (1) means only generate Strong Alerts only.
Level (2) means generate Strong and Medium Alerts.
Level (3) means generate Strong, Medium and Weak Alerts.
TTP VIX SpyTTP VIX Spy is an indicator that uses data from TVC:VIX to better time entries in the market.
The assumption used is that when the VIX is coming down from the top of its range then the risk on assets can move to the upside and when the VIX is is pushing higher there's a high likelihood or risk on assets going down.
This indicator observes the momentum of VIX using MACD. It offers two different signals both for longs and shorts: signal 1 and 2.
Signal 1 is activate when the begging of a new trend for the VIX is confirmed.
Signal 2 is activated when the VIX pulls back from an extreme value.
You can configure the parameters of the internal super trend and the look back for the slope applied to price and RSIs.
The indicator offers the following filter parameters:
- Price RSI slope: it filters signals that have RSI slope pointing in the opposite direction of the signal.
- Counter trend: it filters signals that are not counter trending super trend.
- Wide BBW: it filters signals that happen when there hasn't been high price volatility
- Price slope: it filters signals when the price is not pointing in the direction of the signal (buy: up, sell: down)
- VIX RSI filter: it filters VIX RSI values overextended. MACD can be in the right range, but sometimes RSI contradicts it. By default is OFF since it can cause false negatives.
- Working days only: it filters signals that occur in the weekend.
The colours below the price action show how the VIX momentum is changing. Transitions from red into pink and then green show how the fear is fading which tends to lead to lead to bullish moves, and the opposite when the transitions are from green to red.
Performance and initial thoughts.
I have tried VIX Spy on both BINANCE:BTCUSDT.P and BINANCE:ETHUSDT.P and it seems to offer a decent win ratio. As you can see I had to add many filter to remove bad entries and left toggles available to decide which ones you want to use.
I tried the signal in the 4H, 1H and 15min with mixed results. I tend to incline for the results in the 1H.
VIX signal offers a backtestable stream and alerts both for signals 1 and 2.
MACD_VXI by GermoIts a volume-weighted MACD(13/21), by applying VW(8) to the MA formula.
Not a big deal, but I liked it. It reduces some noise imho.
McGinley Dynamic Convergence/Divergence [ChuckBanger]This is a MACD version with MaGinley Dynamic indicator invented by John R. McGinley. MaGinley Dynamic can be used as a moving average and is a highly reliable indicator. Here i use it instead of EMA witch normally is used to calculate MACD.
For more information of MaGinley Dynamic
www.investopedia.com
MACD PercentageJust the macd not using the raw difference between the 12 and 26 ema for the macd. Instead It calculates the difference in %. Histogram and signal are also derived from the macd line. Also added 2 horizontal lines, you can modify.
Feel free to use and copy the code. I also copied the source code from tradingview public script, thanks to the one who made it.
Multi-time Frame Trend DirectionThis is a multi-time frame trend direction indicator. It indicates whether the trend is ascending or descending across multiple time frames: 5M, 15M, 30M, 1H, 4H, and Daily.
The logic is based on the positions of EMA12 and EMA26.
These EMAs are smoothed with an SMA.
Why 12 and 26, and why are they smoothed with 9?
As you might surmise, these parameters are derived from the MACD.
I recommend not altering the parameters, but the choice is yours. Enjoy.
MAROC Fast/SlowNot sure if a similar indicator already exist, so I created my own. After creating this indicator, I realize it looks very similar to MACD. However, it strictly uses Hull moving average in its calculation for the lines.
MAROC is simply Moving Average Rate of Change. This is a trend-following indicator that calculates the rate of change on two Hull moving averages. By default it calculates the ROC on 60-period HMA (green and red) and 180-period HMA (blue and orange). The zero line represents the confirmation of change in trend. Above zero is up trend and below zero is down trend. Note the difference between the "trend reversal" and the "confirmation of a trend". I like to define trend reversal by the change in direction
The colored squares on the zero line has 4 colors that represents the overall trend. Here I include the slowdown of MAROC as the start of a trend.
- bright green = when both the slow and fast MA are trending up
- faded green = when slow MA trending up, but fast MA trending down
- faded red = when slow MA trending down, but fast MA trending up
- bright red = when both the slow MA and fast MA are trending down
Trend changes triangles are shown to signal the change in trend direction (trend reversal). Green and blue triangles are trend reversal to the upside. Red and orange triangles are trend reversal to the downside.
This indicator includes the option of displaying buy(long) and sell(short) signals that follows these rules. Use at your own discretion, as it may not apply well with your market or ticker.
- Long = Bright green square and either fast or slow MAROC changes trend direction to the upside
- Short = Bright red square and either fast or slow MAROC changes trend direction to the downside
Enjoy~! Please let me know if you find this useful and which market / ticker and timeframe you are using it on~ :)
Adaptive MA Scalping StrategyAdaptive MA Scalping Strategy
The Adaptive MA Scalping Strategy is an innovative trading approach that merges the strengths of the Kaufman's Adaptive Moving Average (KAMA) with the Moving Average Convergence Divergence (MACD) histogram. This combination results in a momentum-adaptive moving average that dynamically adjusts to market conditions, providing traders with timely and reliable signals.
How It Works
Kaufman's Adaptive Moving Average (KAMA): Unlike traditional moving averages, KAMA adjusts its sensitivity based on market volatility. It becomes more responsive during trending markets and less sensitive during periods of consolidation, effectively filtering out market noise.
MACD Histogram Integration: The strategy incorporates the MACD histogram, a momentum indicator that measures the difference between a fast and a slow exponential moving average (EMA). By adding the MACD histogram values to the KAMA, the strategy creates a new line—the momentum-adaptive moving average (MOMA)—which captures both trend direction and momentum.
Signal Generation:
Long Entry: The strategy enters a long position when the closing price crosses above the MOMA. This indicates a potential upward momentum shift.
Exit Position: The position is closed when the closing price crosses below the MOMA, signaling a potential decline in momentum.
Cloud Calculation Detail
The MOMA is calculated by adding the MACD histogram value to the KAMA of the price. This addition effectively adjusts the KAMA based on the momentum indicated by the MACD histogram. When momentum is strong, the MACD histogram will have higher values, causing the MOMA to adjust accordingly and provide earlier entry or exit signals.
Performance on Stocks
This strategy has demonstrated excellent performance on stocks when applied to the 1-hour timeframe. Its adaptive nature allows it to respond swiftly to market changes, capturing profitable trends while minimizing the impact of false signals caused by market noise. The combination of KAMA's adaptability and MACD's momentum detection makes it particularly effective in volatile market conditions commonly seen in stock trading.
Key Parameters
KAMA Length (malen): Determines the sensitivity of the KAMA. A length of 100 is used to balance responsiveness with noise reduction.
MACD Fast Length (fast): Sets the period for the fast EMA in the MACD calculation. A value of 24 helps in capturing short-term momentum changes.
MACD Slow Length (slow): Sets the period for the slow EMA in the MACD calculation. A value of 52 smooths out longer-term trends.
MACD Signal Length (signal): Determines the period for the signal line in the MACD calculation. An 18-period signal line is used for timely crossovers.
Advantages of the Strategy
Adaptive to Market Conditions: By adjusting to both volatility and momentum, the strategy remains effective across different market phases.
Enhanced Signal Accuracy: The fusion of KAMA and MACD reduces false signals, improving the accuracy of trade entries and exits.
Simplicity in Execution: With straightforward entry and exit rules based on price crossovers, the strategy is user-friendly for traders at all experience levels
MACD with DPO Strategy by NGExplanation of the MACD with DPO Strategy:
MACD (Moving Average Convergence Divergence):
The MACD is a trend-following indicator that shows the relationship between two moving averages of a price.
In this script:
We calculate the MACD line by subtracting the slow moving average (typically 26-period EMA) from the fast moving average (typically 12-period EMA).
The Signal line is calculated as a 9-period EMA of the MACD line.
The Histogram is the difference between the MACD line and the Signal line, indicating the momentum of the price trend.
Buy Condition: The script generates a buy signal when the MACD histogram crosses from negative to positive (indicating a bullish momentum) and DPO is also positive.
Sell Condition: The script generates a sell signal when the MACD histogram crosses from positive to negative (indicating a bearish momentum) and DPO is also negative.
DPO (Detrended Price Oscillator):
The DPO removes long-term trends from prices, making it easier to identify shorter-term cycles or oscillations.
In this script:
We calculate the DPO by subtracting a shifted simple moving average (SMA) from the close price. The shifting period depends on half the specified period.
We also calculate the DPO SMA as a 30-period EMA of the DPO values.
DPO Color: The DPO line is colored green when the DPO is above zero (indicating upward momentum) and red when it is below zero (indicating downward momentum). The histogram is also colored based on whether the DPO is positive or negative.
Plotting and Alerts:
The script plots the MACD, Signal, and Histogram on the chart.
Additionally, it plots the DPO and its SMA with different colors depending on whether the DPO is above or below zero.
Buy Signal: A green arrow labeled "BUY" is plotted below the bar when both MACD and DPO indicate a bullish condition.
Sell Signal: A red arrow labeled "SELL" is plotted above the bar when both MACD and DPO indicate a bearish condition.
Background colors are used to highlight the chart whenever a buy or sell condition occurs.
The script also includes alerts for both buy and sell signals, allowing users to set notifications when conditions are met.
How to Use:
Identify Buy and Sell Signals:
The script generates a Buy signal when:
The MACD histogram crosses from negative to positive (bullish momentum), and
The DPO is above zero (indicating upward momentum).
The script generates a Sell signal when:
The MACD histogram crosses from positive to negative (bearish momentum), and
The DPO is below zero (indicating downward momentum).
Chart Visualization:
The MACD histogram and Signal line help visualize the momentum and potential trend reversal.
The DPO and DPO SMA help visualize the shorter-term price cycles.
The signals (Buy and Sell) will be plotted on the chart with arrows indicating entry points.
Customization:
You can adjust the MACD and DPO parameters (such as fast_length, slow_length, period_) to fit your trading style or market conditions.
The script can be used in any timeframe depending on your strategy (e.g., intraday trading or longer-term trading).
Example Scenario:
If you're looking for potential buy opportunities, wait for the script to generate a buy signal (green arrow) where the MACD histogram has shifted to positive, and DPO is also in the green (above zero). This signals that both momentum and cycle direction are aligned for a potential upward movement.
Conversely, for sell opportunities, wait for the red arrow where MACD momentum is turning negative and DPO is also negative (below zero), indicating a bearish condition.
This combination of MACD and DPO allows traders to identify stronger and more reliable entry/exit points by confirming the trend with the MACD and detecting shorter-term price cycles with the DPO.
MACD Trail | Flux Charts💎 GENERAL OVERVIEW
Introducing our new MACD Trail indicator! Moving average convergence/divergence (MACD) is a well-known indicator among traders. It's a trend-following indicator that uses the relationship between two exponential moving averages (EMAs). This indicator aims to use MACD to generate a trail that follows the current price of the ticker, which can act as a support / resistance zone. More info about the process in the "How Does It Work" section.
Features of the new MACD Trail Indicator :
A Trail Generated Using MACD Calculation
Customizable Algorithm
Customizable Styling
📌 HOW DOES IT WORK ?
First of all, this indicator calculates the current MACD of the ticker using the user's input as settings. Let X = MACD Length setting ;
MACD ~= X Period EMA - (X * 2) Period EMA
Then, two MACD Trails are generated, one being bullish and other being bearish. Let ATR = 30 period ATR (Average True Range)
Bullish MACD Trail = Current Price + MACD - (ATR * 1.75)
Bearish MACD Trail = Current Price + MACD + (ATR * 1.75)
The indicator starts by rendering only the Bullish MACD Trail. Then if it's invalidated (candlestick closes below the trail) it switches to Bearish MACD Trail. The MACD trail switches between bullish & bearish as they get invalidated.
The trail type may give a hint about the current trend of the price action. The trail itself also can act as a support / resistance zone, here is an example :
🚩 UNIQUENESS
While MACD is one of the most used indicators among traders, this indicator aims to add another functionality to it by rendering a trail based on it. This trail may act as a support / resistance zone as described above, and gives a glimpse about the current trend. The indicator also has custom MACD Length and smoothing options, as well as various style options.
⚙️ SETTINGS
1. General Configuration
MACD Length -> This setting adjusts the EMA periods used in MACD calculation. Increasing this setting will make MACD more responseive to longer trends, while decreasing it may help with detection of shorter trends.
Smoothing -> The smoothing of the MACD Trail. Increasing this setting will help smoothen out the MACD Trail line, but it can also make it less responsive to the latest changes.
Multi Timeframe Moving Average Convergence Divergence {DCAquant}Overview
The MTF MACD indicator provides a unique view of MACD (Moving Average Convergence Divergence) and Signal Line dynamics across various timeframes. It calculates the MACD and Signal Line for each selected timeframe and aggregates them for analysis.
Key Features
MACD Calculation
Utilizes standard MACD calculations based on user-defined parameters like fast length, slow length, and signal smoothing.
Determines the difference between the MACD and Signal Line to identify convergence or divergence.
Multiple Timeframe Analysis
Allows users to select up to six different timeframes for analysis, ranging from minutes to days, providing a holistic view of market trends.
Calculates MACD and Signal Line for each timeframe independently.
Aggregated Analysis
Combines MACD and Signal Line values from multiple timeframes to derive a consolidated view.
Optionally applies moving average smoothing to aggregated MACD and Signal Line values for better clarity.
Position Identification
Determines the trading position (Long, Short, or Neutral) based on the relationship between MACD and Signal Line.
Considers the proximity of MACD and Signal Line to identify potential trading opportunities.
Visual Representation
Plots MACD and Signal Line on the price chart for visual analysis.
Utilizes color-coded backgrounds to indicate trading conditions (Long, Short, or Neutral) for quick interpretation.
Dynamic Table Display
Displays trading position alongside graphical indicators (rocket for Long, snowflake for Short, and star for Neutral) in a customizable table.
Offers flexibility in table placement and size for user preference.
How to Use
Parameter Configuration
Adjust parameters like fast length, slow length, and signal smoothing to fine-tune MACD calculations.
Select desired timeframes for analysis based on trading preferences and market conditions.
Interpretation
Monitor the relationship between MACD and Signal Line on the price chart.
Pay attention to color-coded backgrounds and graphical indicators in the table for actionable insights.
Decision Making
Consider entering Long positions when MACD is above the Signal Line and vice versa for Short positions.
Exercise caution during Neutral conditions, as there may be uncertainty in market direction.
Risk Management
Combine MTF MACD analysis with risk management strategies to optimize trade entries and exits.
Set stop-loss and take-profit levels based on individual risk tolerance and market conditions.
Conclusion
The Multi Timeframe Moving Average Convergence Divergence (MTF MACD) indicator offers a robust framework for traders to analyze market trends across multiple timeframes efficiently. By combining MACD insights from various time horizons and presenting them in a clear and actionable format, it empowers traders to make informed decisions and enhance their trading strategies.
Disclaimer
The Multi Timeframe Moving Average Convergence Divergence (MTF MACD) indicator provided here is intended for educational and informational purposes only. Trading in financial markets involves risk, and past performance is not indicative of future results. The use of this indicator does not guarantee profits or prevent losses.
Please be aware that trading decisions should be made based on your own analysis, risk tolerance, and financial situation. It is essential to conduct thorough research and seek advice from qualified financial professionals before engaging in any trading activity.
The MTF MACD indicator is a tool designed to assist traders in analyzing market trends and identifying potential trading opportunities. However, it is not a substitute for sound judgment and prudent risk management.
By using this indicator, you acknowledge that you are solely responsible for your trading decisions, and you agree to indemnify and hold harmless the developer and distributor of this indicator from any losses, damages, or liabilities arising from its use.
Trading in financial markets carries inherent risks, and you should only trade with capital that you can afford to lose. Exercise caution and discretion when implementing trading strategies, and consider seeking independent financial advice if necessary.
Dual_MACD_trendingINFO:
This indicator is useful for trending assets, as my preference is for low-frequency trading, thus using BTCUSD on 1D/1W chart
In the current implementation I find two possible use cases for the indicator:
- as a stand-alone indicator on the chart which can also fire alerts that can help to determine if we want to manually enter/exit trades based on the signals from it (1D/1W is good for non-automated trading)
- can be used to connect to the Signal input of the TTS (TempalteTradingStrategy) by jason5480 in order to backtest it, thus effectively turning it into a strategy (instructions below in TTS CONNECTIVITY section)
Trading period can be selected from the indicator itself to limit to more interesting periods.
Arrow indications are drawn on the chart to indicate the trading conditions met in the script - light green for HTF crossover, dark green for LTF crossover and orange for LTF crossunder.
Note that the indicator performs best in trending assets and markets, and it is advisable to use additional indicators to filter the trading conditions when market/asset is expected to move sideways.
DETAILS:
It uses a couple of MACD indicators - one from the current timeframe and one from a higher timeframe, as the crossover/crossunder cases of the MACD line and the signal line indicate the potential entry/exit points.
The strategy has the following flow:
- If the weekly MACD is positive (MACD line is over the signal line) we have a trading window.
- If we have a trading window, we buy when the daily macd line crosses AND closes above the signal line.
- If we are in a position, we await the daily MACD to cross AND close under the signal line, and only then place a stop loss under the wick of that closing candle.
The user can select both the higher (HTF) and lower (LTF) timeframes. Preferably the lower timeframe should be the one that the Chart is on for better visualization.
If one to decide to use the indicator as a strategy, it implements the following buy and sell criterias, which are feed to the TTS, but can be also manually managed via adding alerts from this indicator.
Since usually the LTF is preceeding the crossover compared to the HTF, then my interpretation of the strategy and flow that it follows is allowing two different ways to enter a trade:
- crossover (and bar close) of the macd over the signal line in the HIGH TIMEFRAME (no need to look at the LOWER TIMEFRMAE)
- crossover (and bar close) of the macd over the signal line in the LOW TIMEFRAME, as in this case we need to check also that the macd line is over the signal line for the HIGH TIMEFRAME as well (like a regime filter)
The exit of the trade is based on the lower timeframe MACD only, as we create a stop loss equal to the lower wick of the bar, once the macd line crosses below the signal line on that timeframe
SETTINGS:
All of the indicator's settings are for the vanilla/general case.
User can set all of the MACD parameters for both the higher and lower (current) timeframes, currently left to default of the MACD stand-alone indicator itself.
The start-end date is a time filter that can be extermely usefull when backtesting different time periods.
TTS SETTINGS (NEEDED IF USED TO BACKTEST WITH TTS)
The TempalteTradingStrategy is a strategy script developed in Pine by jason5480, which I recommend for quick turn-around of testing different ideas on a proven and tested framework
I cannot give enough credit to the developer for the efforts put in building of the infrastructure, so I advice everyone that wants to use it first to get familiar with the concept and by checking
by checking jason5480's profile www.tradingview.com
The TTS itself is extremely functional and have a lot of properties, so its functionality is beyond the scope of the current script -
Again, I strongly recommend to be thoroughly epxlored by everyone that plans on using it.
In the nutshell it is a script that can be feed with buy/sell signals from an external indicator script and based on many configuration options it can determine how to execute the trades.
The TTS has many settings that can be applied, so below I will cover only the ones that differ from the default ones, at least according to my testing - do your own research, you may find something even better :)
The current/latest version that I've been using as of writing and testing this script is TTSv48
Settings which differ from the default ones:
- from - False (time filter is from the indicator script itself)
- Deal Conditions Mode - External (take enter/exit conditions from an external script)
- 🔌Signal 🛈➡ - Dual_MACD: 🔌Signal to TTSv48 (this is the output from the indicator script, according to the TTS convention)
- Sat/Sun - true (for crypto, in order to trade 24/7)
- Order Type - STOP (perform stop order)
- Distance Method - HHLL (HigherHighLowerLow - in order to set the SL according to the strategy definition from above)
The next are just personal preferenes, you can feel free to experiment according to your trading style
- Take Profit Targets - 0 (either 100% in or out, no incremental stepping in or out of positions)
- Dist Mul|Len Long/Short- 10 (make sure that we don't close on profitable trades by any reason)
- Quantity Method - EQUITY (personal backtesting preference is to consider each backtest as a separate portfolio, so determine the position size by 100% of the allocated equity size)
- Equity % - 100 (note above)
EXAMPLES:
If used as a stand-alone indicator, the green arrows on the bottom will represent:
- light green - MACD line crossover signal line in the HTF
- darker green - MACD line crossover signal line in the LTF
- orange - MACD line crossunder signal line in the LTF
I recommend enabling the alerts from the script to cover those cases.
If used as an input to the TTS, we'll get more decorations on the chart from the TTS itself.
In the example below we open a trade on the next day of LTF crossover, then a few days later a crossunder in the LTF occurs, so we set a SL at the low of the wick of this day. Few days later the price doesn't recover and hits that SL, so the position is closed.
Relative Moving Average Convergence DivergenceThe normal MACD is formed by the difference of two moving averages. In contrast, the relative MACD is formed by the quotient of two moving averages.
In my opinion, it is only with the Relaticen MACD possible to compare values at different prices.
Der normale MACD wird durch die Differenz zweier gleitender Durchschnitte gebildet. Im Gegensatz dazu wird der Relative MACD duch den Quotienten zweier gleitender Durchscnitte gebildet.
Meiner Meinung nach, ist es erst mit dem Relaticen MACD möglich Werte zu unterschiedlichen Kursen zu vergleichen.
La MACD normale est formée par la différence entre deux moyennes mobiles. En revanche, la MACD relative est calculée à partir du quotient de deux moyennes mobiles.
À mon avis, ce n'est qu'avec la MACD relative qu'il est possible de comparer des valeurs à des prix différents.
El MACD normal está formado por la diferencia entre dos medias móviles. En cambio, el MACD relativo está formado por el cociente de dos medias móviles.
En mi opinión, sólo con el MACD Relativo es posible comparar valores a diferentes precios.
Обычный MACD формируется разницей между двумя скользящими средними. В отличие от этого, относительный MACD формируется из коэффициента двух скользящих средних.
На мой взгляд, только с помощью относительного MACD можно сравнивать значения по разным ценам.
正常的MACD是由两条移动平均线之差形成的。相反，相对MACD是由两条移动平均线的商数形成的。
在我看来，只有相对MACD才有可能比较不同价格下的价值。
MACD+RSI+BBDESCRIPTION
The MACD + RSI + Bollinger Bands Indicator is a comprehensive technical analysis tool designed for traders and investors to identify potential market trends and reversals. This script combines three indicators: the Moving Average Convergence Divergence (MACD), the Relative Strength Index (RSI), and Bollinger Bands. Each of these indicators provides unique insights into market behavior.
FEATURES
MACD (Moving Average Convergence Divergence)
The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price.
The script calculates the MACD line, the signal line, and the histogram, which visually represents the difference between the MACD line and the signal line.
RSI (Relative Strength Index)
The RSI is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100 and is typically used to identify overbought or oversold conditions.
The script allows users to set custom upper and lower thresholds for the RSI, with default values of 70 and 30, respectively.
Bollinger Bands
Bollinger Bands consist of a middle band (EMA) and two outer bands (standard deviations away from the EMA). They help traders identify volatility and potential price reversals.
The script allows users to customize the length of the Bollinger Bands and the multiplier for the standard deviation.
Color-Coding Logic
The histogram color changes based on the following conditions:
Black: If the RSI is above the upper threshold and the closing price is above the upper Bollinger Band, or if the RSI is below the lower threshold and the closing price is below the lower Bollinger Band.
Green (#4caf50): If the RSI is above the upper threshold but the closing price is not above the upper Bollinger Band.
Light Green (#a5d6a7): If the histogram is positive and the RSI is not above the upper threshold.
Red (#f23645): If the RSI is below the lower threshold but the closing price is not below the lower Bollinger Band.
Light Red (#faa1a4): If the histogram is negative and the RSI is not below the lower threshold.
Inputs
Bollinger Bands Settings
Length: The number of periods for the moving average.
Basis MA Type: The type of moving average (SMA, EMA, SMMA, WMA, VWMA).
Source: The price source for the Bollinger Bands calculation.
StdDev: The multiplier for the standard deviation.
RSI Settings
RSI Length: The number of periods for the RSI calculation.
RSI Upper: The upper threshold for the RSI.
RSI Lower: The lower threshold for the RSI.
Source: The price source for the RSI calculation.
MACD Settings
Fast Length: The length for the fast moving average.
Slow Length: The length for the slow moving average.
Signal Smoothing: The length for the signal line smoothing.
Oscillator MA Type: The type of moving average for the MACD calculation.
Signal Line MA Type: The type of moving average for the signal line.
Usage
This indicator is suitable for various trading strategies, including day trading, swing trading, and long-term investing.
Traders can use the MACD histogram to identify potential buy and sell signals, while the RSI can help confirm overbought or oversold conditions.
The Bollinger Bands provide context for price volatility and potential breakout or reversal points.
Example:
From the example, it can clearly see that the Selling Climax and Buying Climax, marked as orange circle when a black histogram occurs.
Conclusion
The MACD + RSI + Bollinger Bands Indicator is a versatile tool that combines multiple technical analysis methods to provide traders with a comprehensive view of market conditions. By utilizing this script, traders can enhance their analysis and improve their decision-making process.
MACD Histogram Fibonacci Retracement LevelsMACD Histogram Fibonacci Retracement Level s.
MACD Histogram Fibonacci Retracement Levels indicator considers the highest and lowest histogram bar levels from Intraday Day Open.
Fibonacci retracement levels 23.6%, 38.2%, 50%, 61.8%, and 78.6% are displayed for the Highest and Lowest histogram bar .As the day progress revised Fibonacci Retracement Levels are set in based on change in Highest and Lowest histogram bar levels.
Histogram bars positions are monitored vis a vis the Fibonacci Retracement Levels to plan the trade entry or exit as per MACD indicator.
MACD and Signal levels are opted out to get clear histogram bar image on chart. Input check in box is available to display MACD and signal lines at Users option.
A Histogram intraday average line (Histo Intra Avg) indicate the intraday average movement of histogram bars.
MACD Histogram Fibonacci Retracement Levels is very useful to know the level of upward and downward Histogram bar movements vis a vis Fibonacci Retracement Levels compared to general MACD Indicator Histogram levels.
DISCLAIMER: For educational and entertainment purpose only .Nothing in this content should be interpreted as financial advice or a recommendation to buy or sell any sort of security/ies or investment/s.
XAUUSD 10-Minute StrategyThis XAUUSD 10-Minute Strategy is designed for trading Gold vs. USD on a 10-minute timeframe. By combining multiple technical indicators (MACD, RSI, Bollinger Bands, and ATR), the strategy effectively captures both trend-following and reversal opportunities, with adaptive risk management for varying market volatility. This approach balances high-probability entries with robust volatility management, making it suitable for traders seeking to optimise entries during significant price movements and reversals.
Key Components and Logic:
MACD (12, 26, 9):
Generates buy signals on MACD Line crossovers above the Signal Line and sell signals on crossovers below the Signal Line, helping to capture momentum shifts.
RSI (14):
Utilizes oversold (below 35) and overbought (above 65) levels as a secondary filter to validate entries and avoid overextended price zones.
Bollinger Bands (20, 2):
Uses upper and lower Bollinger Bands to identify potential overbought and oversold conditions, aiming to enter long trades near the lower band and short trades near the upper band.
ATR-Based Stop Loss and Take Profit:
Stop Loss and Take Profit levels are dynamically set as multiples of ATR (3x for stop loss, 5x for take profit), ensuring flexibility with market volatility to optimise exit points.
Entry & Exit Conditions:
Buy Entry: T riggered when any of the following conditions are met:
MACD Line crosses above the Signal Line
RSI is oversold
Price drops below the lower Bollinger Band
Sell Entry: Triggered when any of the following conditions are met:
MACD Line crosses below the Signal Line
RSI is overbought
Price moves above the upper Bollinger Band
Exit Strategy: Trades are closed based on opposing entry signals, with adaptive spread adjustments for realistic exit points.
Backtesting Configuration & Results:
Backtesting Period: July 21, 2024, to October 30, 2024
Symbol Info: XAUUSD, 10-minute timeframe, OANDA data source
Backtesting Capital: Initial capital of $700, with each trade set to 10 contracts (equivalent to approximately 0.1 lots based on the broker’s contract size for gold).
Users should confirm their broker's contract size for gold, as this may differ. This script uses 10 contracts for backtesting purposes, aligned with 0.1 lots on brokers offering a 100-contract specification.
Key Backtesting Performance Metrics:
Net Profit: $4,733.90 USD (676.27% increase)
Total Closed Trades: 526
Win Rate: 53.99%
Profit Factor: 1.44 (1.96 for Long trades, 1.14 for Short trades)
Max Drawdown: $819.75 USD (56.33% of equity)
Sharpe Ratio: 1.726
Average Trade: $9.00 USD (0.04% of equity per trade)
This backtest reflects realistic conditions, with a spread adjustment of 38 points and no slippage or commission applied. The settings aim to simulate typical retail trading conditions. However, please adjust the initial capital, contract size, and other settings based on your account specifics for best results.
Usage:
This strategy is tuned specifically for XAUUSD on a 10-minute timeframe, ideal for both trend-following and reversal trades. The ATR-based stop loss and take profit levels adapt dynamically to market volatility, optimising entries and exits in varied conditions. To backtest this script accurately, ensure your broker’s contract specifications for gold align with the parameters used in this strategy.
