OPEN-SOURCE SCRIPT
MACD Multi-MA Strategy
Updated
This script applies the average of each major MA (SMA, RMA, EMA, WVMA, WMA) to the MACD formula.
The logic is simple. When all 5 MA's are in agreement in direction, then then script will notify users of change.
I posted this as a strategy to help show how logic does in back test. If you use my simple yet effective solution to find take profit locations, you can blow this back testing out of the water!!!
To set alerts simply turn script into study
//version=2
study(title="MACD Multi-MA Study", overlay=false)
src = close
len1 = input(8, "FAST LOOKBACK")
len2 = input(144, "SLOW LOOKBACK")
/////////////////////////////////////////////
length = len2-len1
ma = vwma(src, length)
plot(ma, title="VWMA", color=lime)
length1 = len2-len1
ma1 = rma(src, length1)
plot(ma1, title="RMA", color=purple)
length2 = len2-len1
ma2 = sma(src, length2)
plot(ma2, title="SMA", color=red)
length3 = len2-len1
ma3 = wma(src, length3)
plot(ma3, title="WMA", color=orange)
length4 = len2-len1
ma4 = ema(src, length4)
plot(ma4, title="EMA", color=yellow)
long = ma > ma[1] and ma1 > ma1[1] and ma2 > ma2[1] and ma3 > ma3[1] and ma4 > ma4[1]
short = ma < ma[1] and ma1 < ma1[1] and ma2 < ma2[1] and ma3 < ma3[1] and ma4 < ma4[1]
alertcondition(long == true, title='MACD LONG SIGNAL', message='MACD LONG!')
alertcondition(short == true, title='MACD SHORT SIGNAL', message='MACD SHORT!')
The logic is simple. When all 5 MA's are in agreement in direction, then then script will notify users of change.
I posted this as a strategy to help show how logic does in back test. If you use my simple yet effective solution to find take profit locations, you can blow this back testing out of the water!!!
To set alerts simply turn script into study
//version=2
study(title="MACD Multi-MA Study", overlay=false)
src = close
len1 = input(8, "FAST LOOKBACK")
len2 = input(144, "SLOW LOOKBACK")
/////////////////////////////////////////////
length = len2-len1
ma = vwma(src, length)
plot(ma, title="VWMA", color=lime)
length1 = len2-len1
ma1 = rma(src, length1)
plot(ma1, title="RMA", color=purple)
length2 = len2-len1
ma2 = sma(src, length2)
plot(ma2, title="SMA", color=red)
length3 = len2-len1
ma3 = wma(src, length3)
plot(ma3, title="WMA", color=orange)
length4 = len2-len1
ma4 = ema(src, length4)
plot(ma4, title="EMA", color=yellow)
long = ma > ma[1] and ma1 > ma1[1] and ma2 > ma2[1] and ma3 > ma3[1] and ma4 > ma4[1]
short = ma < ma[1] and ma1 < ma1[1] and ma2 < ma2[1] and ma3 < ma3[1] and ma4 < ma4[1]
alertcondition(long == true, title='MACD LONG SIGNAL', message='MACD LONG!')
alertcondition(short == true, title='MACD SHORT SIGNAL', message='MACD SHORT!')
Release Notes
Sorry for the confusion. I stumbled upon good results thinking I was using MACD formula. Turns out I was only using partial formula. The mistake just goes to show how uncomplicated a script needs to be to give good back testing results even on a line chart.
Release Notes
Updated version with 4H setting at 66 just to show better backtest. See comment section below to test other lookback periods for other timeframesI also changed overlay to true to save space on your screen
Open-source script
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 publication is governed by House rules. You can favorite it to use it on a chart.
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Disclaimer
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