OPEN-SOURCE SCRIPT
Smoother Momentum MACD w/ DSL [Loxx]
Smoother Momentum MACD w/ DSL [Loxx] uses two different EMA calculations to derive momentum and then calculates the MACD between those momentum outputs. This indicator uses a variation of Discontinued Signal Lines for the breakout/breakdown/reversal signals . There are three different signal types: middle, levels, and slope. I've also added alerts and signals. The discontinued signal lines can be smoothed using EMA or Fast EMA.
What are DSL Discontinued Signal Line?
A lot of indicators are using signal lines in order to determine the trend (or some desired state of the indicator) easier. The idea of the signal line is easy : comparing the value to it's smoothed (slightly lagging) state, the idea of current momentum/state is made.
Discontinued signal line is inheriting that simple signal line idea and it is extending it : instead of having one signal line, more lines depending on the current value of the indicator.
"Signal" line is calculated the following way :
When a certain level is crossed into the desired direction, the EMA of that value is calculated for the desired signal line
When that level is crossed into the opposite direction, the previous "signal" line value is simply "inherited" and it becomes a kind of a level
This way it becomes a combination of signal lines and levels that are trying to combine both the good from both methods.
In simple terms, DSL uses the concept of a signal line and betters it by inheriting the previous signal line's value & makes it a level.
Included:
Other momentum indicators
CFB-Adaptive Velocity Histogram [Loxx]
![CFB-Adaptive Velocity Histogram [Loxx]](https://s3.tradingview.com/h/hpWb892n_mid.png)
Variety-Filtered, Squeeze Moving Averages [Loxx]
![Variety-Filtered, Squeeze Moving Averages [Loxx]](https://s3.tradingview.com/t/t0xt2nWn_mid.png)
William Blau Ergodic Tick Volume Indicator (TVI) [Loxx]
![William Blau Ergodic Tick Volume Indicator (TVI) [Loxx]](https://s3.tradingview.com/z/Z4Pi5Cuh_mid.png)
What are DSL Discontinued Signal Line?
A lot of indicators are using signal lines in order to determine the trend (or some desired state of the indicator) easier. The idea of the signal line is easy : comparing the value to it's smoothed (slightly lagging) state, the idea of current momentum/state is made.
Discontinued signal line is inheriting that simple signal line idea and it is extending it : instead of having one signal line, more lines depending on the current value of the indicator.
"Signal" line is calculated the following way :
When a certain level is crossed into the desired direction, the EMA of that value is calculated for the desired signal line
When that level is crossed into the opposite direction, the previous "signal" line value is simply "inherited" and it becomes a kind of a level
This way it becomes a combination of signal lines and levels that are trying to combine both the good from both methods.
In simple terms, DSL uses the concept of a signal line and betters it by inheriting the previous signal line's value & makes it a level.
Included:
- Loxx's Expanded Source Types
- Alerts
- Signals
- Bar coloring
Other momentum indicators
CFB-Adaptive Velocity Histogram [Loxx]
Variety-Filtered, Squeeze Moving Averages [Loxx]
William Blau Ergodic Tick Volume Indicator (TVI) [Loxx]
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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