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Moving Average Convergence / Divergence (MACD)

MACD Boundary PSA - CoffeeKillerMACD Boundary PSA - CoffeeKiller Indicator Guide Welcome traders! This guide will walk you through the MACD Boundary PSA indicator, a powerful market analysis tool developed by CoffeeKiller that enhances the traditional MACD with advanced boundary detection and peak signaling features. 🔔 **Warning: This Indicator Has No Signal Line or MACD Line** 🔔 This indicator is my version of the MACD, that I use in conjunction with the Rev&Line indicator. Core Concept: Enhanced MACD Analysis The foundation of this indicator builds upon the classic Moving Average Convergence Divergence (MACD) indicator, adding boundary tracking and peak detection systems to provide clearer signals and market insights. Histogram Bars: Market Momentum - Positive Green Bars: Bullish momentum - Negative Red Bars: Bearish momentum - Color intensity varies based on momentum strength - Special coloring for new high/low boundaries Marker Lines: Dynamic Support/Resistance - High Marker Line (Magenta): Tracks the highest point reached during a bullish phase - Low Marker Line (Cyan): Tracks the lowest point reached during a bearish phase - Acts as dynamic boundaries that help identify strength of current moves Peak Detection System: - Triangular markers identify significant local maxima and minima - Background highlighting shows important momentum peaks - Helps identify potential reversal points and momentum exhaustion Core Components 1. MACD Calculation - Customizable fast and slow moving averages - Signal line smoothing options - Flexible MA type selection (SMA or EMA) - Custom source input options 2. Boundary Tracking System - Automatic detection of highest values in bullish phases - Automatic detection of lowest values in bearish phases - Step-line visualization of boundaries - Color-coded for easy identification 3. Peak Detection System - Identification of local maxima and minima - Background highlighting of significant peaks - Triangle markers for peak visualization - Zero-line cross detection for trend changes 4. Time Resolution Control - Normal mode: calculations based on chart timeframe - Custom resolution mode: calculations based on specified timeframe Main Features Time Resolution Settings - Normal mode: calculations match your chart's timeframe - Custom resolution mode: calculations based on specified timeframe - Helps identify stronger signals from other timeframes Visual Elements - Color-coded histogram bars - Dynamic marker lines for boundaries - Peak triangles for significant turning points - Background highlighting for peak identification Signal Generation - Zero-line crosses for trend change signals - Boundary breaks for momentum strength - Peak formation for potential reversals - Color changes for momentum direction Customization Options - MA types and lengths - Signal smoothing - Color schemes - Marker line visibility - Peak background display options Trading Applications 1. Trend Identification - Histogram crossing above zero: bullish trend beginning - Histogram crossing below zero: bearish trend beginning - Histogram color: indicates momentum direction - Consistent color intensity: trend strength 2. Reversal Detection - Peak triangles after extended trend: potential exhaustion - Background highlighting: significant reversal points - Histogram approaching marker lines: potential trend change - Color shifts from bright to muted: decreasing momentum 3. Momentum Analysis - Histogram breaking above previous high boundary: accelerating bullish momentum - Histogram breaking below previous low boundary: accelerating bearish momentum - Special coloring (magenta/cyan): boundary breaks indicating strength - Distance from zero line: overall momentum magnitude 4. Market Structure Assessment - Consecutive higher peaks: strengthening bullish structure - Consecutive lower troughs: strengthening bearish structure - Peak comparisons: relative strength of momentum phases - Boundary line steps: market structure levels Optimization Guide 1. MACD Settings - Fast Length: Shorter values (8-12) for responsiveness, longer values (20+) for smoother signals - Slow Length: Shorter values (21-34) for more signals, longer values (72+) for major moves - Default settings (22, 72, 9): balanced approach for most timeframes - Consider using 8, 21, 5 for shorter timeframes and 34, 144, 5 for longer timeframes 2. MA Type Selection - EMA: More responsive, follows price more closely - SMA: Smoother, fewer false signals, potentially more lag - Mix and match for oscillator and signal lines based on your preference 3. Time Resolution - Match chart timeframe: for aligned analysis - Use higher timeframe: for filtering signals - Lower timeframe: for earlier entries but more noise 4. Color Customization - Normal bullish/bearish colors: represent standard momentum - High/low marker line colors: customize visibility - Peak marker colors: adjust for your visual preference - Consider chart background when selecting colors Best Practices 1. Signal Confirmation - Wait for zero-line crosses to confirm trend changes - Look for peak formations to identify potential reversals - Check for boundary breaks to confirm strong momentum - Use custom timeframe option for higher timeframe confirmation 2. Timeframe Selection - Lower timeframes: more signals, potential noise - Higher timeframes: cleaner signals, less frequent - Custom resolution: allows comparison across timeframes - Consider using multiple timeframes for confirmation 3. Market Context - Strong bullish phase: positive histogram breaking above marker line - Strong bearish phase: negative histogram breaking below marker line - Histogram approaching zero: potential trend change - Peak formations: potential exhaustion points 4. Combining with Other Indicators - Use with trend indicators for confirmation - Pair with oscillators for overbought/oversold conditions - Combine with volume analysis for validation - Consider support/resistance levels with boundary lines Advanced Trading Strategies 1. Boundary Break Strategy - Enter long when histogram breaks above previous high marker line - Enter short when histogram breaks below previous low marker line - Use zero-line as initial stop-loss reference - Take profits at formation of opposing peaks 2. Peak Trading Strategy - Identify significant peaks with triangular markers - Look for consecutive lower peaks in bullish phases for shorting opportunities - Look for consecutive higher troughs in bearish phases for buying opportunities - Use zero-line crosses as confirmation 3. Multi-Timeframe Strategy - Use custom resolution for higher timeframe MACD trend - Enter trades when both timeframes align - Higher timeframe for trend direction - Chart timeframe for precise entry 4. Histogram Color Strategy - Enter long when histogram turns bright green (increasing momentum) - Enter short when histogram turns bright red (increasing momentum) - Exit when color intensity fades (decreasing momentum) - Use marker lines as dynamic support/resistance Practical Analysis Examples Bullish Market Scenario - Histogram crosses above zero line - Green bars grow in height and intensity - High marker line forms steps upward - Peak triangles appear at local maxima - Background highlights appear at significant momentum peaks Bearish Market Scenario - Histogram crosses below zero line - Red bars grow in depth and intensity - Low marker line forms steps downward - Peak triangles appear at local minima - Background highlights appear at significant momentum troughs Consolidation Scenario - Histogram oscillates around zero line - Bar colors alternate frequently - Marker lines remain relatively flat - Few or no new peak highlights appear - Histogram values remain small Understanding Market Dynamics Through MACD Boundary PSA At its core, this indicator provides a unique lens to visualize market momentum and boundaries: 1. Momentum Strength: The histogram height/depth shows the strength of current momentum, with color intensity providing additional context about acceleration or deceleration. 2. Dynamic Boundaries: The marker lines create a visual representation of the "high water marks" of momentum in both directions, helping to identify when markets are making new momentum extremes. 3. Exhaustion Signals: The peak detection system highlights moments where momentum has reached a local maximum or minimum, often precursors to reversals or consolidations. 4. Trend Confirmation: The histogram color and intensity provide instant feedback about the current trend direction and strength, with special colors highlighting particularly significant moves. Remember: - Combine signals from histogram, marker lines, and peak formations - Use appropriate timeframe settings for your trading style - Customize the indicator to match your visual preferences - Consider market conditions and correlate with price action This indicator works best when: - Used as part of a comprehensive trading system - Combined with proper risk management - Applied with an understanding of current market conditions - Signals are confirmed by price action and other indicators **DISCLAIMER**: This indicator and its signals are intended solely for educational and informational purposes. They do not constitute financial advice. Trading involves significant risk of loss. Always conduct your own analysis and consult with financial professionals before making trading decisions.
Pine Script® indicator
by CoffeeKiller
Trend Strength MeterThe Trend Strength Meter (TSM) is a powerful and versatile indicator designed to help traders identify market trends, measure their strength, and detect potential reversals with ease. This indicator combines the power of moving averages, divergence detection, and a clean, customizable dashboard to provide actionable insights for traders of all levels. How It Works Trend Strength Calculation: 1. The TSM calculates the trend strength using the difference between two Exponential Moving Averages (EMAs): a fast EMA (default: 20) and a slow EMA (default: 50). 2. The difference is expressed as a percentage of the slow EMA, providing a clear measure of the trend's strength and direction. Histogram Visualization: 1. A color-coded histogram visually represents the trend strength: Green: Bullish trend Red: Bearish trend Gray: Neutral or no significant trend 2. A smoothed trend strength line (SMA of the trend strength) is also plotted for better clarity. Divergence Detection: 1. The indicator detects bullish and bearish divergences using the RSI (Relative Strength Index) and price action. 2. Bullish Divergence: Price makes a lower low, but RSI makes a higher low, signaling potential upward momentum. 3. Bearish Divergence: Price makes a higher high, but RSI makes a lower high, signaling potential downward momentum. => Divergences are marked with arrows on the chart: Green Arrow: Bullish divergence Red Arrow: Bearish divergence Dashboard: 1. A clean and informative dashboard displays key information: Trend Strength Value: The current strength of the trend Trend Direction: Bullish, Bearish, or Neutral Last Signal: Buy, Sell, or None (based on divergence signals) The dashboard is fully customizable and can be positioned anywhere on the chart (e.g., top-right, bottom-left, center, etc.). Key Features 1. Trend Strength Measurement: Quickly identify the strength and direction of the trend. 2. Divergence Detection: Spot potential reversals before they occur with bullish and bearish divergence signals. 3. Customizable Dashboard: Move the dashboard to your preferred location on the chart for better visibility. 4. User-Friendly Design: Clean visuals and intuitive color coding make it easy to interpret market conditions. 5. Actionable Signals: Provides clear Buy/Sell signals based on divergence, helping traders make informed decisions. How to Use 1. Trend Confirmation: Use the histogram and trend strength value to confirm the current market trend. Green bars indicate a bullish trend, while red bars indicate a bearish trend. 2. Divergence Signals: Look for divergence arrows (green for bullish, red for bearish) to anticipate potential reversals. Combine divergence signals with other technical analysis tools for higher accuracy. 3. Dashboard Insights: Monitor the dashboard for real-time updates on trend strength, direction, and the latest signal. Use the "Last Signal" (Buy/Sell) to validate your trading decisions. 4. Custom Settings: Adjust the EMA lengths and divergence lookback period to suit your trading style and timeframe. Position the dashboard anywhere on the chart for convenience. Best Practices 1. Use the TSM in conjunction with other indicators or price action analysis for confirmation. 2. Test the indicator on different timeframes to find the one that works best for your strategy. 3. Always practice proper risk management when trading. Disclaimer This indicator is a tool to assist in technical analysis and should not be used as a standalone trading strategy. Past performance is not indicative of future results. Always conduct your own research and consult with a financial advisor before making trading decisions.
Pine Script® indicator
by darshakssc
Enhanced 3-Month Reversal Strategy v6 (TSLA)### **Strategy Overview: Enhanced 3-Month Reversal Strategy v6 for TSLA** This custom-designed strategy is tailored specifically for **Tesla Inc. (TSLA)**, incorporating a multi-factor scoring model to capture short-term mean-reversion opportunities within a broader trend-aware framework. --- ### **Methodology** The strategy blends **technical reversal signals** with **trend filtering** and **volatility-adjusted risk management**. It assigns dynamic weights to six core technical indicators for both long and short entries: - **RSI (7-period):** Identifies overbought/oversold conditions based on percentile ranks. - **MACD (8/17/9):** Captures short-term momentum shifts with trend confirmation. - **ADX (14):** Ensures trades are taken only in strong trending environments. - **Volume Spike:** Confirms breakout or reversal intensity. - **SMA Crossovers (20 & 50):** Filters trend direction on a medium scale. - **Implied Volatility Rank (126-period HV proxy):** Measures relative volatility levels to confirm timing. All inputs are scored based on weighted signals, and trades are only entered when the composite score exceeds a defined threshold. --- ### **Features** - ✅ **Volatility-based dynamic stop-loss and take-profit** for adaptive risk management. - ✅ **Intraday trading window filter** to restrict trades to regular market hours (default: 9AM–4PM EST). - ✅ **Trend filter (200-SMA)** to allow long trades only in bullish markets. - ✅ **Score threshold parameters** are fully adjustable for optimization. - ✅ **Individual trade P&L tracking** via chart annotations. --- ### **Backtest Summary** - **Time period:** Backtested on TSLA from **January 2022 to March 2025**. - **Data granularity:** 15-minute and 1-hour timeframes show best performance consistency. - **Market regime:** Performs well in both trending and volatile mean-reversion phases. --- ### **Best Input Parameters (from hyperparameter tuning)** **Long Entry Weights:** - RSI: `0.35` - IV Rank: `0.10` - MACD: `0.15` - SMA Condition: `0.25` - ADX: `0.15` - Volume Spike: `0.25` **Short Entry Weights:** - RSI: `0.20` - IV Rank: `0.15` - MACD: `0.30` - SMA Condition: `0.00` - ADX: `0.15` - Volume Spike: `0.30` **Other Settings:** - MACD Signal Period: `9` - RSI Length: `7` - IV Period: `126` - SMA Periods: `20 & 50` - Trend Filter SMA: `200` - Stop Loss / Take Profit: `1.0 × HV` multiplier --- --- Optuna 优化完成 --- 最佳 Trial 编号: 29 最佳 Total Return : 17927.75678703037 最佳参数: rsi_length: 13 iv_length: 140 macd_fast: 7 macd_slow: 30 adx_length: 25 sma_short_period: 21 sma_long_period: 78 volume_ma_period: 14 rsi_low_percentile: 21 rsi_high_percentile: 60 iv_low_percentile: 11 iv_high_percentile: 89 take_profit_mult: 4.0 stop_loss_mult: 5.0 bullish_threshold: 0.65 bearish_threshold: 0.9 rsi_bull_weight: 0.5 iv_bull_weight: 0.25 macd_bull_weight: 0.30000000000000004 sma_bull_weight: 0.1 adx_bull_weight: 0.0 volume_bull_weight: 0.3 rsi_bear_weight: 0.5 iv_bear_weight: 0.2 macd_bear_weight: 0.15000000000000002 sma_bear_weight: 0.1 adx_bear_weight: 0.1 volume_bear_weight: 0.15000000000000002 macd_signal: 9
Pine Script® strategy
by licai918
Reversal + Confirm ZonesThis script is written in Pine Script (version 5) for TradingView and creates an indicator called **"Reversal + Confirm Zones"**. It overlays visual zones on a price chart to identify potential reversal points and confirmation signals for trading. The indicator combines **Bollinger Bands** and **RSI** to detect overbought/oversold conditions (reversal zones) and uses **EMA crosses** and **MACD zero-line crosses** to confirm bullish or bearish trends. Below is a detailed explanation: --- ### **1. Purpose** - The script highlights: - **Reversal Zones**: Areas where the price might reverse due to being overbought (green) or oversold (red). - **Confirmation Zones**: Areas where a trend reversal is confirmed using EMA and MACD signals (green for bullish, red for bearish). - It provides visual backgrounds and alerts to assist traders in spotting potential trade setups. --- ### **2. Components** The script is divided into two main parts: **Reversal Logic** and **Confirmation Logic**. --- ### **3. Reversal Logic (Red & Green Zones)** #### **Bollinger Bands** - **Parameters**: - Length: 20 periods. - Source: Closing price (`close`). - Multiplier: 2.0 (standard deviations). - **Calculation**: - `basis`: 20-period Simple Moving Average (SMA). - `dev`: 2 times the standard deviation of the price over 20 periods. - `upper`: `basis + dev` (upper band). - `lower`: `basis - dev` (lower band). - **Purpose**: Identifies when the price moves outside the normal range (beyond 2 standard deviations). #### **Relative Strength Index (RSI)** - **Parameters**: - Length: 14 periods. - Low Threshold: 30 (oversold). - High Threshold: 70 (overbought). - **Calculation**: `rsiValue = ta.rsi(close, rsiLength)`. - **Purpose**: Measures momentum to confirm overbought or oversold conditions. #### **Zone Conditions** - **Red Zone (Oversold)**: - Condition: `close < lower` (price below lower Bollinger Band) AND `rsiValue < rsiLowThreshold` (RSI < 30). - Visual: Light red background (`color.new(color.red, 80)`). - Alert: "Deep Oversold Signal triggered!". - **Green Zone (Overbought)**: - Condition: `close > upper` (price above upper Bollinger Band) AND `rsiValue > rsiHighThreshold` (RSI > 70). - Visual: Light green background (`color.new(color.green, 80)`). - Alert: "Deep Overbought Signal triggered!". #### **Interpretation** - Red Zone: Suggests the price is oversold and may reverse upward. - Green Zone: Suggests the price is overbought and may reverse downward. --- ### **4. Confirmation Logic (EMA and MACD Crosses)** #### **Exponential Moving Averages (EMAs)** - **Parameters**: - Short EMA Length: 9 periods (user adjustable). - Long EMA Length: 21 periods (user adjustable). - **Calculation**: - `emaShort = ta.ema(close, emaShortLength)`. - `emaLong = ta.ema(close, emaLongLength)`. - **Conditions**: - **Bullish EMA Cross**: `emaCrossBullish = ta.crossover(emaShort, emaLong)` (9 EMA crosses above 21 EMA). - **Bearish EMA Cross**: `emaCrossBearish = ta.crossunder(emaShort, emaLong)` (9 EMA crosses below 21 EMA). #### **MACD** - **Parameters**: - Fast Length: 12 periods (user adjustable). - Slow Length: 26 periods (user adjustable). - Signal Smoothing: 9 periods (user adjustable). - **Calculation**: - ` = ta.macd(close, macdFastLength, macdSlowLength, macdSignalSmoothing)`. - Only the MACD line and signal line are used; the histogram is ignored (`_`). - **Conditions**: - **Bullish MACD Cross**: `macdCrossBullish = ta.crossover(macdLine, 0)` (MACD crosses above zero). - **Bearish MACD Cross**: `macdCrossBearish = ta.crossunder(macdLine, 0)` (MACD crosses below zero). #### **Combined Confirmation Conditions** - **Bullish Confirmation**: - Condition: `bullishConfirmation = emaCrossBullish and macdCrossBullish`. - Visual: Very light green background (`color.new(color.green, 90)`). - Meaning: A bullish trend is confirmed when the 9 EMA crosses above the 21 EMA AND the MACD crosses above zero. - **Bearish Confirmation**: - Condition: `bearishConfirmation = emaCrossBearish and macdCrossBearish`. - Visual: Very light red background (`color.new(color.red, 90)`). - Meaning: A bearish trend is confirmed when the 9 EMA crosses below the 21 EMA AND the MACD crosses below zero. --- ### **5. Visual Outputs** - **Reversal Zones**: - Red background for oversold conditions. - Green background for overbought conditions. - **Confirmation Zones**: - Light green background for bullish confirmation. - Light red background for bearish confirmation. - Note: The script does not plot the Bollinger Bands, EMAs, or MACD lines—only the background zones are visualized. --- ### **6. Alerts** - **Deep Oversold Alert**: Triggers when the red zone condition is met. - **Deep Overbought Alert**: Triggers when the green zone condition is met. - No alerts are set for the confirmation zones (EMA/MACD crosses). --- ### **7. How It Works** 1. **Reversal Detection**: - The script uses Bollinger Bands and RSI to flag extreme price levels (red for oversold, green for overbought). - These zones suggest potential reversals but are not confirmed yet. 2. **Trend Confirmation**: - EMA crosses (9/21) and MACD zero-line crosses provide confirmation of a trend direction. - Bullish confirmation (green) occurs when both indicators align upward. - Bearish confirmation (red) occurs when both indicators align downward. 3. **Trading Strategy**: - Look for a red zone (oversold) followed by a bullish confirmation for a potential long entry. - Look for a green zone (overbought) followed by a bearish confirmation for a potential short entry. --- ### **8. How to Use** 1. Add the script to TradingView. 2. Adjust inputs (EMA lengths, MACD settings) if desired. 3. Monitor the chart: - Red zones indicate oversold conditions—watch for a potential upward reversal. - Green zones indicate overbought conditions—watch for a potential downward reversal. - Light green/red backgrounds confirm the trend direction after a reversal zone. 4. Set up alerts for oversold/overbought conditions to catch reversal signals early. --- ### **9. Key Features** - **Dual Purpose**: Combines reversal detection (Bollinger Bands + RSI) with trend confirmation (EMA + MACD). - **Visual Simplicity**: Uses background colors instead of plotting lines, keeping the chart clean. - **Customizable**: Allows users to tweak EMA and MACD periods. - **Alerts**: Notifies users of extreme conditions for timely action. --- ### **10. Limitations** - No plotted indicators (e.g., Bollinger Bands, EMAs, MACD) for visual reference—relies entirely on background shading. - Confirmation signals (EMA/MACD) may lag behind reversal zones, potentially missing fast reversals. - No alerts for confirmation zones, limiting real-time notification of trend confirmation. This script is ideal for traders who want a straightforward way to spot potential reversals and confirm them with trend-following indicators, all overlaid on the price chart.
Pine Script® indicator
by skrillionaire1
Moving Average Convergence DivergenceThis script is written in Pine Script (version 6) for TradingView and implements the **Moving Average Convergence Divergence (MACD)** indicator. The MACD is a popular momentum oscillator used to identify trend direction, strength, and potential reversals. This version includes customizable inputs, visual enhancements (like crossover markers), and alerts for key events. Below is a detailed explanation of the script: --- ### **1. Purpose** - The script calculates and displays the MACD line, signal line, and histogram. - It highlights key events such as MACD/signal line crossovers and zero-line crosses with shapes and colors. - It provides alerts for changes in the histogram's direction (rising to falling or vice versa). --- ### **2. User Inputs** - **Fast Length**: Period for the fast moving average (default: 12). - **Slow Length**: Period for the slow moving average (default: 26). - **Source**: Data input for calculation (default: closing price, `close`). - **Signal Smoothing**: Period for the signal line (default: 9, range: 1–50). - **Oscillator MA Type**: Type of moving average for MACD calculation (options: SMA or EMA, default: EMA). - **Signal Line MA Type**: Type of moving average for the signal line (options: SMA or EMA, default: EMA). --- ### **3. MACD Calculation** The MACD is calculated in three parts: 1. **MACD Line**: Difference between the fast and slow moving averages. - Fast MA: Either SMA or EMA of the source over `fast_length`. - Slow MA: Either SMA or EMA of the source over `slow_length`. - Formula: `macd = fast_ma - slow_ma`. 2. **Signal Line**: A moving average (SMA or EMA) of the MACD line over `signal_length`. - Formula: `signal = sma_signal == "SMA" ? ta.sma(macd, signal_length) : ta.ema(macd, signal_length)`. 3. **Histogram**: Difference between the MACD line and the signal line. - Formula: `hist = macd - signal`. --- ### **4. Key Events Detection** #### **MACD/Signal Line Crossovers** - **Bullish Cross**: MACD crosses above the signal line (`ta.crossover(macd, signal)`). - **Bearish Cross**: MACD crosses below the signal line (`ta.crossunder(macd, signal)`). #### **Zero Line Crosses** - **Cross Above Zero**: MACD crosses above 0 (`ta.crossover(macd, 0)`). - **Cross Below Zero**: MACD crosses below 0 (`ta.crossunder(macd, 0)`). --- ### **5. Colors** - **MACD Line**: Green (#089981) if MACD > signal (bullish), red (#f23645) if MACD < signal (bearish). - **Signal Line**: White (`color.white`). - **Histogram**: - Positive (MACD > signal): Light green (#B2DFDB) if decreasing, darker green (#26A69A) if increasing. - Negative (MACD < signal): Light red (#FFCDD2) if increasing in magnitude, darker red (#FF5252) if decreasing in magnitude. - **Zero Line**: Gray with 50% transparency (`color.new(#787B86, 50)`). --- ### **6. Visual Outputs** #### **Plotted Lines** - **MACD Line**: Plotted with dynamic coloring based on its position relative to the signal line. - **Signal Line**: Plotted in white. - **Histogram**: Displayed as columns, with colors indicating direction and momentum. - **Zero Line**: Horizontal line at 0 for reference. #### **Shapes for Key Events** - **Bullish Cross Below Zero**: Green circle on the MACD line when MACD crosses above the signal line while still below zero. - **Bearish Cross Above Zero**: Red circle on the MACD line when MACD crosses below the signal line while still above zero. - **Cross Above Zero**: Green upward label at the zero line when MACD crosses above 0. - **Cross Below Zero**: Red downward label at the zero line when MACD crosses below 0. --- ### **7. Alerts** - **Rising to Falling**: Triggers when the histogram switches from positive (or zero) to negative. - Condition: `hist >= 0 and hist < 0`. - Message: "MACD histogram switched from rising to falling". - **Falling to Rising**: Triggers when the histogram switches from negative (or zero) to positive. - Condition: `hist <= 0 and hist > 0`. - Message: "MACD histogram switched from falling to rising". --- ### **8. How It Works** 1. **Trend Direction**: - MACD above signal line (green) suggests bullish momentum. - MACD below signal line (red) suggests bearish momentum. 2. **Momentum Strength**: - Histogram height shows the strength of the momentum (larger bars = stronger momentum). - Histogram color changes indicate whether momentum is increasing or decreasing. 3. **Reversal Signals**: - Crossovers between MACD and signal lines often signal potential trend changes. - Zero-line crosses indicate shifts between bullish (above 0) and bearish (below 0) territory. --- ### **9. How to Use** 1. Add the script to TradingView. 2. Adjust inputs (e.g., fast/slow lengths, MA types) to suit your trading style. 3. Monitor the chart: - Green MACD and upward histogram bars suggest bullish conditions. - Red MACD and downward histogram bars suggest bearish conditions. - Watch for circles (crossovers) and labels (zero-line crosses) for trade signals. 4. Set up alerts to notify you of histogram direction changes. --- ### **10. Key Features** - **Customization**: Flexible MA types and periods. - **Visual Clarity**: Dynamic colors and shapes highlight key events. - **Alerts**: Notifies users of momentum shifts via histogram changes. - **Intuitive**: Combines all MACD components (line, signal, histogram) in one indicator. This script is ideal for traders who rely on MACD for momentum analysis and want clear visual cues and alerts for decision-making.
Pine Script® indicator
by skrillionaire1
Money Printer V3 – BTC 15M EMA Crossover Strategy🚀 Overview Money Printer V3 is a trend-following strategy built for crypto markets. It uses fast EMA crossovers with RSI filtering, optional MACD and volume confirmation, and ATR-based trailing stops to capture high-probability momentum trades. This version is optimized for 15-minute timeframes with responsive parameters to increase trade frequency and signal clarity. 📈 How It Works Buy Conditions: Fast EMA crosses above Slow EMA RSI > 40 (customizable) Optional: MACD histogram > 0 Optional: Volume above 1.5x 20-period average Sell Conditions: Opposite of the buy conditions Risk Management: Stop-loss and trailing stop are dynamically set using ATR Position size based on account equity and ATR distance (2% risk per trade) ⚙️ Default Settings Fast EMA: 5 Slow EMA: 20 RSI Threshold: 40 MACD Filter: OFF Volume Filter: ON ATR SL Multiplier: 2.5 ATR Trailing Multiplier: 3.5 Risk: 2% of equity per trade Initial Capital: $5,000 Commission: 0.1% Slippage: 0.5% 📊 Backtest Notes Tested on BTC/USD 15-minute timeframe from 2018 to 2024 Produces 100+ trades for statistically relevant sample size Strategy is not predictive — it reacts to confirmed trends with filters to reduce false signals Past performance does not guarantee future results 📌 How to Use Add this strategy to your BTC/USD 15M chart Customize the input parameters to match your trading style Enable alerts for buy/sell conditions Always forward test before using with real funds ⚠️ Disclaimer This script is for educational and research purposes only. Use at your own risk. Markets are unpredictable, and no strategy can guarantee profits. Always use proper risk management.
Pine Script® strategy
by blockchaindomain719
4
MACD + RSI + 200EMA Filtered SignalsMACD HAS RSI filter and EMA filter which gives good buy and sell signals. Several indicators combine Moving Average Convergence Divergence (MACD) with Relative Strength Index (RSI) and Exponential Moving Average (EMA) filters to generate potential buy and sell signals . These enhanced indicators use the EMA to filter signals based on the trend, only considering buy signals when the price is above the EMA and sell signals when it's below . The RSI helps identify overbought and oversold conditions, improving the accuracy of trade entries .
Pine Script® indicator
by rajendrachoudhary
Multi-Indicator Trading DashboardMulti-Indicator Trading Dashboard: Comprehensive Analysis and Actionable Signals This Pine Script indicator, "Multi-Indicator Trading Dashboard," provides a comprehensive overview of key market indicators and generates actionable trading signals, all presented in a clear, easy-to-read table format on your TradingView chart. Key Features: Real-time Indicator Analysis: The dashboard displays real-time values and signals for: RSI (Relative Strength Index): Tracks overbought and oversold conditions. MACD (Moving Average Convergence Divergence): Identifies trend changes and momentum. ADX (Average Directional Index): Measures trend strength. Volatility (ATR-based): Estimates volatility as a percentage, acting as a VIX proxy for single-symbol charts. Trend Determination: Analyzes 20, 50, and 200-period EMAs to provide a clear trend assessment (Strong Bullish, Cautious Bullish, Cautious Bearish, Strong Bearish). Combined Trading Signals: Integrates signals from RSI, MACD, ADX, and trend analysis to generate a combined "Buy," "Sell," or "Neutral" action signal. User-Friendly Table Display: Presents all information in a neatly organized table, positioned at the top-right of your chart. Visual Chart Overlays: Plots 20, 50, and 200-period EMAs directly on the chart for visual trend confirmation. Background Color Alerts: Colors the chart's background based on the "Buy" or "Sell" action signal for quick visual cues. Customizable Inputs: Allows you to adjust key parameters like RSI lengths, MACD settings, ADX thresholds, and EMA periods. How It Works: Indicator Calculations: The script calculates RSI, MACD, ADX, and a volatility proxy (ATR) using standard Pine Script functions. Trend Analysis: It compares 20, 50, and 200-period EMAs to determine the overall trend direction. Individual Signal Generation: It generates individual "Buy," "Sell," or "Neutral" signals based on RSI, MACD, and ADX values. Combined Signal Logic: It combines the individual signals and trend analysis, assigning a "Buy" or "Sell" action only when at least two indicators align. Table Display: It creates a table and populates it with the calculated values, signals, and trend information. Chart Overlays: It plots the EMAs on the chart and colors the background based on the combined action signal. Use Cases: Quick Market Overview: Get a snapshot of key market indicators and trend direction at a glance. Confirmation Tool: Use the combined signals to confirm your existing trading strategies. Educational Purpose: Learn how different indicators interact and influence trading decisions. Automated Alerting: Set up alerts based on the "Buy" or "Sell" action signals. Customization: Adjust the input parameters to fine-tune the indicator's sensitivity to your trading style and the specific market you're analyzing. Disclaimer: This indicator is for informational and educational purposes only and should not be considered financial advice. Always conduct thorough research and consult with 1 a qualified professional before making any 2 trading decisions.
Pine Script® indicator
by tsanthoshreddy
Dual MACD Strategy [Jason Kasei]Dual MACD Strategy Description The Dual MACD Strategy is a quantitative trading strategy based on two Moving Average Convergence-Divergence (MACD) indicators with different timeframes, designed to capture market trading opportunities by combining short-term and long-term trend signals. Implemented on the TradingView platform, this strategy operates independently of the price chart overlay and is suitable for various financial markets, including stocks, futures, and forex. Key Features Dual MACD Design: MACD1 (Short-Term): Default fast length of 34, slow length of 144, and signal smoothing of 9, used to detect short-term trend changes. MACD2 (Long-Term): Default fast length of 100, slow length of 200, and signal smoothing of 50, used to assess long-term trend direction. Users can customize the fast, slow, and signal lengths and choose between SMA (Simple Moving Average) or EMA (Exponential Moving Average) for calculations. Trading Logic: Long Condition: MACD1 histogram crosses above the zero line (short-term bullish), MACD2 histogram is positive (long-term bullish), and MACD2 histogram has just crossed above zero with a deepening green (trend confirmation). Short Condition: MACD1 histogram crosses below the zero line (short-term bearish), MACD2 histogram is negative (long-term bearish), and MACD2 histogram has just crossed below zero with a deepening red (trend confirmation). Risk Management: Stop Loss: Default at 1% (adjustable, minimum 0.1%), dynamically calculated based on entry price. Take Profit: Default at 1.5% (adjustable, minimum 0.1%), dynamically calculated based on entry price. Trades are processed at candle close to ensure signal stability. Capital Management: Default setting uses 100% of account equity per trade, with an initial capital of 10,000 units, adjustable based on user preference. Visualization MACD1 and MACD2 histograms are plotted separately, with the zero line marked as a dashed gray line. Histogram colors change dynamically: positive values are green (deepening green for rising trends), and negative values are red (deepening red for declining trends), visually reflecting trend strength. Alert Functionality Provides long and short entry signal alerts for real-time monitoring and automated trading. Use Case This strategy excels in trending markets, leveraging the short-term MACD to filter noise and the long-term MACD to confirm direction. It is ideal for medium- to short-term trend traders. Users can tweak parameters to optimize performance based on specific market conditions. By blending a classic technical analysis tool with flexible trading rules, this strategy offers a robust framework for traders seeking consistent returns.
Pine Script® strategy
by Jasonkasei
Schaff Trend Cycle (STC)The STC (Schaff Trend Cycle) indicator is a momentum oscillator that combines elements of MACD and stochastic indicators to identify market cycles and potential trend reversals. Key features of the STC indicator: Oscillates between 0 and 100, similar to a stochastic oscillator Values above 75 generally indicate overbought conditions Values below 25 generally indicate oversold conditions Signal line crossovers (above 75 or below 25) can suggest potential entry/exit points Faster and more responsive than traditional MACD Designed to filter out market noise and identify cyclical trends Traders typically use the STC indicator to: Identify potential trend reversals Confirm existing trends Generate buy/sell signals when combined with other technical indicators Filter out false signals in choppy market conditions This STC implementation includes multiple smoothing options that act as filters: None: Raw STC values without additional smoothing, which provides the most responsive but potentially noisier signals. EMA Smoothing: Applies a 3-period Exponential Moving Average to reduce noise while maintaining reasonable responsiveness (default). Sigmoid Smoothing: Transforms the STC values using a sigmoid (S-curve) function, creating more gradual transitions between signals and potentially reducing whipsaw trades. Digital (Schmitt Trigger) Smoothing: Creates a binary output (0 or 100) with built-in hysteresis to prevent rapid switching. The STC indicator uses dynamic color coding to visually represent momentum: Green: When the STC value is above its 5-period EMA, indicating positive momentum Red: When the STC value is below its 5-period EMA, indicating negative momentum The neutral zone (25-75) is highlighted with a light gray fill to clearly distinguish between normal and extreme readings. Alerts: Bullish Signal Alert: The STC has been falling It bottoms below the 25 level It begins to rise again This pattern helps confirm potential uptrend starts with higher reliability. Bearish Signal Alert: The STC has been rising It peaks above the 75 level It begins to decline This pattern helps identify potential downtrend starts.
Pine Script® indicator
by mihak09
[NLR] - MACD OverlayOverview This script is an enhanced version of the classic MACD indicator, designed to be plotted directly on the price chart as an overlay. It provides a visual representation of trend direction by coloring moving averages, a zero reference line, and an optional histogram. The script allows for a higher timeframe MACD calculation through a configurable multiplier. Features MACD Calculation: Uses Exponential Moving Averages (EMA) to calculate the MACD line, Signal line, and Histogram. Higher Timeframe Support: Multiplier option to adjust MACD parameters for a broader trend perspective. Color-Coded Trend Visualization: Dynamic color changes based on MACD crossovers for easy trend identification. Optional Histogram: Toggle histogram visibility to see momentum shifts. Zero Line Reference: Helps traders interpret trend direction and strength. How to Use Customize Inputs: Adjust Fast, Slow, and Signal lengths as needed. Modify the multiplier to view a higher timeframe MACD. Enable Histogram: Use the "Show Histogram" toggle to display additional visual cues for momentum shifts. Interpret the Signals: Uptrend (Lime): Fast EMA is above Slow EMA. Downtrend (Fuchsia): Fast EMA is below Slow EMA. Histogram Changes: Increasing histogram bars indicate growing momentum, while decreasing bars suggest weakening momentum.
Pine Script® indicator
by NonLinearRookie
9
RSI & MACD Exit IndicatorThis indicator is designed to assist traders in identifying potential exit points for long and short trades by combining the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD). Unlike traditional indicators that provide entry signals, this script is specifically optimized for exit strategies, helping traders manage their positions efficiently. How It Works The script identifies potential exit points based on the following conditions: 🔴 Exit Long: - RSI crosses above the user-defined overbought threshold (default: 65). - MACD crosses below the signal line (bearish crossover). 🟢 Exit Short: - RSI crosses below the user-defined oversold threshold (default: 35). - MACD crosses above the signal line (bullish crossover). When these conditions align, a label appears on the price chart indicating an exit point. Key Features - Customizable RSI & MACD Settings – Adjust lengths and thresholds to suit your strategy. - ATR-Based Adjustments – The script incorporates an ATR multiplier for dynamic signal adjustments based on market volatility. - Clear Visual Labels – Exit points are clearly marked on price candles. - Color-Coded Background – Highlights buy/sell zones for quick identification. - Alerts for Exit Signals – Receive notifications when exit conditions are met. - Clean Chart Design – The MACD plots are placed below the main chart to avoid clutter. How to Use ⚠ This indicator is for exits only and does not generate buy/sell entry signals. For long trades: When an Exit Long signal appears, traders may consider closing or reducing their long positions. For short trades: When an Exit Short signal appears, traders may consider closing or reducing their short positions. ATR Settings: Users can adjust the ATR multiplier to fine-tune the signal frequency based on market conditions. Important Notes - This indicator does not guarantee future performance—it should be used alongside other analysis methods. - No financial advice – Always use proper risk management. - TradingView users who do not read Pine Script can still fully utilize this script thanks to the detailed signal labels and alerts. 💡 Developed with advice from @CoffeeshopCrypto based on user feedback.
Pine Script® indicator
by mramoraf
2
[F.B]_ZLEMA MACD ZLEMA MACD – A Zero-Lag Variant of the Classic MACD Introduction & Motivation The Moving Average Convergence Divergence (MACD) is a standard indicator for measuring trend strength and momentum. However, it suffers from the latency of traditional Exponential Moving Averages (EMAs). This variant replaces EMAs with Zero Lag Exponential Moving Averages (ZLEMA), reducing delay and increasing the indicator’s responsiveness. This can potentially lead to earlier trend change detection, especially in highly volatile markets. Calculation Methodology 2.1 Zero-Lag Exponential Moving Average (ZLEMA) The classic EMA formula is extended with a correction factor: ZLEMA_t = EMA(2 * P_t - EMA(P_t, L), L) where: P_t is the closing price, L is the smoothing period length. 2.2 MACD Calculation Using ZLEMA MACD_t = ZLEMA_short,t - ZLEMA_long,t with standard parameters of 12 and 26 periods. 2.3 Signal Line with Adaptive Methodology The signal line can be calculated using ZLEMA, EMA, or SMA: Signal_t = f(MACD, S) where f is the chosen smoothing function and S is the period length. 2.4 Histogram as a Measure of Momentum Changes Histogram_t = MACD_t - Signal_t An increasing histogram indicates a relative acceleration in trend strength. Potential Applications in Data Analysis Since the indicator is based solely on price time series, its effectiveness as a standalone trading signal is limited. However, in quantitative models, it can be used as a feature for trend quantification or for filtering market phases with strong trend dynamics. Potential use cases include: Trend Classification: Segmenting market phases into "trend" vs. "mean reversion." Momentum Regime Identification: Analyzing histogram dynamics to detect increasing or decreasing trend strength. Signal Smoothing: An alternative to classic EMA smoothing in more complex multi-factor models. Important: Using this as a standalone trading indicator without additional confirmation mechanisms is not recommended, as it does not demonstrate statistical superiority over other momentum indicators. Evaluation & Limitations ✅ Advantages: Reduced lag compared to the classic MACD. Customizable signal line smoothing for different applications. Easy integration into existing analytical pipelines. ⚠️ Limitations: Not a standalone trading system: Like any moving average, this indicator is susceptible to noise and false signals in sideways markets. Parameter sensitivity: Small changes in period lengths can lead to significant signal deviations, requiring robust optimization. Conclusion The ZLEMA MACD is a variant of the classic MACD with reduced latency, making it particularly useful for analytical purposes where faster adaptation to price movements is required. Its application in trading strategies should be limited to multi-factor models with rigorous evaluation. Backtests and out-of-sample analyses are essential to avoid overfitting to past market data. Disclaimer: This indicator is provided for informational and educational purposes only and does not constitute financial advice. The author assumes no responsibility for any trading decisions made based on this indicator. Trading involves significant risk, and past performance is not indicative of future results.
Pine Script® indicator
by F-B_AutoPilot
Moving Average Convergence Divergence with Enhanced Cross Alerts Overview of Features and Settings - Customizable Parameters: - Fast and Slow Periods: Users can set the duration for both the fast (default 12) and slow (default 26) moving averages. - Source Selection: The indicator uses the closing price (close) by default, though this can be modified to any other data source. - Signal Smoothing: The smoothing period for the signal line is adjustable (default 9), and you can choose whether to use SMA or EMA for both the oscillator and the signal line calculations. Calculation Logic 1. Calculation of Moving Averages: - The fast and slow moving averages are computed based on the chosen moving average type (SMA or EMA) over the specified periods. - The MACD line is then determined as the difference between these two moving averages. 2. Signal Line and Histogram: - Signal Line: Created by smoothing the MACD line, with the option to choose between SMA and EMA. - Histogram: Represents the difference between the MACD line and the signal line, visually indicating the divergence between the two. Detection of Cross Events The script identifies two specific cross events with additional filtering conditions: - Bullish Cross: - The MACD line **crosses above** the signal line. - The previous value of the histogram is negative, and both the MACD and the signal line are below zero. - This condition suggests that a cross occurring in the negative territory might indicate a potential upward trend reversal. - **Bearish Cross:** - The MACD line **crosses below** the signal line. - The previous value of the histogram is positive, and both the MACD and the signal line are above zero. - This condition indicates that a cross in the positive territory may signal a potential downward trend reversal. For each event, there are dedicated alert conditions defined that trigger notifications when the criteria are met. Visualization - Displayed Elements: - Histogram: Rendered as a column chart with colors that change based on the rate of change. For instance, a rising positive histogram uses a stronger green, whereas a declining positive histogram uses a lighter shade. - MACD and Signal Lines: Displayed as separate lines with distinct colors to differentiate them. - Zero Line: A horizontal line is drawn to help visually pinpoint the zero level. - Crossing Signals: - Optional markers in the form of arrows appear on the chart: - **Bullish Cross: A green, upward-pointing triangle at the bottom. - **Bearish Cross: A red, downward-pointing triangle at the top. Summary This indicator not only incorporates the traditional MACD components but also offers the following additional benefits: - **Enhanced Accuracy:** Extra conditions (such as checking the previous histogram value and the position of the lines relative to zero) improve the identification of significant cross events. - **Customization:** Users can personalize the moving average types and periods, making the indicator adaptable to different trading strategies. - **Visual Assistance:** The combination of histogram columns, lines, and markers helps quickly pinpoint potential trend reversals, thereby aiding trading decisions. This comprehensive description is intended to clearly demonstrate to users how the indicator works, outlining its calculations, filtering conditions, and its role in identifying cross events within technical analysis.
Pine Script® indicator
by BorondePali
MACD Sniper [trade_lexx]📈 MACD Sniper — Improve your trading strategy with accurate signals! Introducing the MACD Sniper , an advanced trading indicator designed for a comprehensive analysis of market conditions. This indicator combines MACD (Moving Average Convergence Divergence) with various types of moving averages (SMA, EMA, WMA, VWMA, KAMA, HMA, ZLEMA, TEMA, ALMA, DEMA), providing traders with a powerful tool for generating buy and sell signals. It is ideal for traders who need an advantage in detecting changes in trends and market conditions. 🔍 How the signals work 1. Histogram signals: — A buy signal is generated when the MACD histogram is below zero and begins to grow after the minimum number of falling histogram columns, which are indicated in the indicator menu. This indicates that selling pressure has decreased, the market is oversold and ready for a rebound. The signals are displayed as green triangles labeled "H" under the histogram graph. On the main chart, buy signals are displayed as green triangles labeled "Buy" under candlesticks. — A sell signal is generated when the MACD histogram is above zero and begins to fall after the minimum number of growing histogram columns, which are indicated in the indicator menu. This indicates that the buying pressure has decreased, the market is overbought and ready for correction. The signals are displayed as red triangles labeled "H" above the histogram graph. On the main chart, the sell signals are displayed as red triangles with the word "Sell" above the candlesticks. 2. Moving Average Crossing Signals (MA): — A buy signal is generated when the Fast Moving Average (MACD) crosses the Slow Moving Average (Signal Line) from bottom to top. This indicates a possible upward reversal of the market. The signals are displayed as green triangles labeled "MA" under the MACD chart. On the main chart, buy signals are displayed as green triangles labeled "Buy" under candlesticks. — A sell signal is generated when the Fast Moving Average (MACD) crosses the slow Moving Average (Signal Line) from top to bottom. This indicates a possible downward reversal of the market. The signals are displayed as red triangles labeled "MA" above the MACD chart. On the main chart, the sell signals are displayed as red triangles with the word "Sell" above the candlesticks. 🔧 Signal filtering — Minimum number of bars between signals This filter allows the user to set the minimum number of bars that must pass between the generation of two consecutive signals. This helps to avoid frequent false alarms and improves the quality of the generated signals. Setting this parameter allows you to filter out the noise in the market and make the signals more reliable. For example, if the value is set to 5, then a new signal will be generated only after 5 bars have passed since the previous signal. — "Wait for the opposite signal" mode In this mode, Buy and Sell signals are generated only after receiving the opposite signal. This means that a buy signal will be generated only after the previous sell signal, and vice versa. This approach adds an additional level of filtering and helps to avoid false positives. This is especially useful in conditions of high market volatility, when false signals often occur. — RSI filter The Relative Strength Index (RSI) is used for additional filtering of buy and sell signals. The RSI helps determine whether a market is overbought or oversold. The user can set overbought and oversold levels, and signals will be generated only when the RSI is in the specified ranges. For example, a buy signal will be generated only if the RSI is in the range between 10 and 30 (oversold), and a sell signal if the RSI is in the range between 70 and 90 (overbought). This helps to avoid false signals in extreme market conditions. 🔌 Connector Histogram, MA, Combined 🔌 These parameters allow you to connect the indicator to trading strategies and test the signals throughout the trading history. This makes the indicator an even more powerful tool for traders who want to test the effectiveness of their strategies on historical data. Connector Histogram provides the ability to connect signals based on the MACD histogram to trading strategies. Connector MA allows you to connect signals based on the intersection of moving averages (MA) of the MACD, which can also be used for automatic trading or strategy testing. The combined connector combines signals based on both a histogram and the intersection of moving averages, making the analysis more comprehensive and reliable, which is especially useful for traders seeking to improve the quality of their trading decisions. 🔔 Alerts The indicator provides the ability to set up notifications for buy and sell signals, which allows traders to keep abreast of important market events without having to constantly monitor the chart. Users can set up notifications that will alert them when buy or sell signals appear, helping them respond to market changes in a timely manner and make informed decisions. These notifications can be configured for various types of signals, such as signals based on the MACD histogram, moving average crossings, or all at once, which makes the indicator a more convenient and functional tool for active traders. 🎨 Customizable Appearance Customize the appearance of the MACD Sniper according to your preferences to make the analysis more convenient and visually pleasing. In the indicator settings section, you can change the colors of the buy and sell signals so that they stand out on the chart and are easily visible. For example, buy signals can be green, and sell signals can be red. These settings allow traders to adapt the indicator to their individual needs, making it more flexible and user-friendly. 🔧 How it works The MACD Sniper indicator starts by calculating the MACD values and moving averages for a specific period in order to assess market conditions. For this, fast and slow moving averages are used, as well as a signal line, which are calculated based on the set parameters. The indicator then analyzes the MACD histogram to determine whether the difference between the fast and slow moving averages is rising or falling. Based on this analysis, buy and sell signals are generated. Additionally, the indicator uses the RSI filter to filter out false signals in overbought or oversold market conditions. The user can set the minimum number of bars between the signals and the "Wait for the opposite signal" mode for additional filtering. The indicator dynamically adjusts to changes in the market, providing relevant signals in real time. 📚 Quick guide to using the MACD Sniper — Add the indicator to your favorites by clicking on the rocket icon. Adjust the parameters such as the length of periods for fast and slow moving averages, the type of moving average (SMA, EMA, WMA, VWMA, KAMA, HMA, ZLEMA, TEMA, ALMA, DEMA) and the length of the signal line, according to your trading style, or leave all settings as default. — Adjust the signal filters to improve their quality and avoid false alarms — Turn on notifications so that you don't miss important trading opportunities and don't constantly sit at the chart. This will allow you to keep abreast of all key market events and respond to them in a timely manner, without being distracted from other business. — Use signals, they will help you determine the optimal entry and exit points of positions. — Use the Connector for deeper analysis and verification of the effectiveness of signals, connect them to your trading strategies. This will allow you to test signals throughout your trading history and evaluate their accuracy based on historical data. — Include the indicator in your trading strategy and run testing to see how buy and sell signals have worked in the past. — Analyze the test results to determine how reliable the signals are and how they can improve your trading strategy. This will help you make more informed decisions and increase your trading efficiency.
Pine Script® indicator
by trade_lexx
4
MACD Crossover Strategy MACD Crossover Strategy: This strategy is based on the Moving Average Convergence Divergence (MACD) indicator, a popular tool used in technical analysis to identify potential trend changes and momentum in price movements. The strategy focuses on MACD crossovers within a specific "important zone" to generate trading signals. Key Components: 1. MACD Calculation: The strategy uses customizable parameters for fast length (default 12), slow length (default 26), and signal length (default 9) to calculate the MACD line and signal line. 2. Important Zone: Defined by upper and lower thresholds (default 0.5 and -0.5), this zone helps filter out potentially less significant crossovers. 3. Entry Conditions: - Long (Buy) Entry: When the MACD line crosses above the signal line within the important zone. - Short (Sell) Entry: When the MACD line crosses below the signal line within the important zone. 4. Exit Conditions: The strategy closes positions on opposite crossover signals. Long positions are closed on bearish crossovers, and short positions on bullish crossovers. 5. Visualization: - MACD line (blue) and signal line (orange) are plotted. - The zero line, upper threshold, and lower threshold are displayed for reference. - Buy signals are represented by green triangles at the bottom of the chart. - Sell signals are shown as red triangles at the top of the chart. This strategy aims to capture trend changes while filtering out potentially false signals that occur when the MACD is at extreme values. By focusing on crossovers within the important zone, the strategy attempts to identify more reliable trading opportunities. Traders can adjust the MACD parameters and the important zone thresholds to fine-tune the strategy for different assets or timeframes. As with any trading strategy, it's crucial to thoroughly backtest and consider risk management before using it in live trading.
Pine Script® strategy
by xdd11a
MACD with Holt–Winters Smoothing [AIBitcoinTrend]👽 MACD with Holt–Winters Smoothing (AIBitcoinTrend) The MACD with Holt–Winters Smoothing is an momentum indicator that enhances traditional MACD analysis by incorporating Holt–Winters exponential smoothing. This adaptation reduces lag while maintaining trend sensitivity, making it more effective for detecting trend reversals and sustained momentum shifts. Additionally, the indicator includes real-time divergence detection and an ATR-based trailing stop system, helping traders manage risk dynamically. 👽 What Makes the MACD with Holt–Winters Smoothing Unique? Unlike the standard MACD, which relies on simple exponential moving averages, this version applies Holt–Winters smoothing to better capture trends while filtering out market noise. Combined with real-time divergence detection and a trailing stop system, this indicator allows traders to: ✅ Identify trend strength with a dynamically smoothed MACD signal. ✅ Detect bullish and bearish divergences in real time. ✅Implement Crossover/Crossunder signals tied to ATR-based trailing stops for risk management 👽 The Math Behind the Indicator 👾 Holt–Winters Smoothing for MACD Traditional MACD calculations use exponential moving averages (EMA) to identify momentum. This indicator improves upon it by applying Holt’s linear trend equations, which enhance signal accuracy by reducing lag and smoothing out fluctuations. Key Features: Alpha (α) - Controls the weight of the new data in smoothing. Beta (β) - Determines how fast the trend component adapts to new changes. The Holt–Winters Signal Line provides a refined MACD crossover system for better trade execution. 👾 Real-Time Divergence Detection The indicator identifies bullish and bearish divergences between MACD and price action. Bullish Divergence: Occurs when price makes a lower low, but MACD makes a higher low – signaling potential upward momentum. Bearish Divergence: Occurs when price makes a higher high, but MACD makes a lower high – signaling potential downward momentum. 👾 Dynamic ATR-Based Trailing Stop The indicator includes a trailing stop system based on ATR (Average True Range). This allows traders to manage positions dynamically based on volatility. Bullish Trailing Stop: Triggers when MACD crosses above the Holt–Winters signal, with a stop placed at low - (ATR × Multiplier). Bearish Trailing Stop: Triggers when MACD crosses below the Holt–Winters signal, with a stop placed at high + (ATR × Multiplier). Trailing Stop Adjustments: Expands or contracts dynamically with market conditions, reducing premature exits while securing profits. 👽 How Traders Can Use This Indicator 👾 Divergence Trading Traders can use real-time divergence detection to anticipate trend reversals before they occur. Bullish Divergence Setup: Look for MACD making a higher low, while price makes a lower low. Enter long when MACD confirms upward momentum. Bearish Divergence Setup: Look for MACD making a lower high, while price makes a higher high. Enter short when MACD confirms downward momentum. 👾 Trailing Stop & Signal-Based Trading Bullish Setup: ✅ MACD crosses above the Holt–Winters signal. ✅ A bullish trailing stop is placed using low - ATR × Multiplier. ✅ Exit if the price crosses below the stop. Bearish Setup: ✅ MACD crosses below the Holt–Winters signal. ✅ A bearish trailing stop is placed using high + ATR × Multiplier. ✅ Exit if the price crosses above the stop. This systematic trade management approach helps traders lock in profits while reducing drawdowns. 👽 Why It’s Useful for Traders Lag Reduction: Holt–Winters smoothing ensures faster and more reliable trend detection. Real-Time Divergence Alerts: Identify potential reversals before they happen. Adaptive Risk Management: ATR-based trailing stops adjust to volatility dynamically. Works Across Markets & Timeframes: Effective for stocks, forex, crypto, and futures trading. 👽 Indicator Settings MACD Fast & Slow Lengths: Adjust the MACD short- and long-term EMA periods. Holt–Winters Alpha & Beta: Fine-tune the smoothing sensitivity. Enable Divergence Detection: Toggle real-time divergence analysis. Lookback Period for Divergences: Configure how far back pivot points are detected. ATR Multiplier for Trailing Stops: Adjust stop-loss sensitivity to market volatility. Trend Filtering: Enable signal filtering based on trend direction. Disclaimer: This indicator is designed for educational purposes and does not constitute financial advice. Please consult a qualified financial advisor before making investment decisions.
Pine Script® indicator
by aibitcointrend
EMA 200 Price Deviation AlertsThis script is written in Pine Script v5 and is designed to monitor the difference between the current price and its 200-period Exponential Moving Average (EMA). Here’s a quick summary: 200 EMA Calculation: It calculates the 200-period EMA of the closing prices. Threshold Input: Users can set a threshold (default is 65) that determines when an alert should be triggered. Price Difference Calculation: The script computes the absolute difference between the current price and the 200 EMA. Alert Condition: If the price deviates from the 200 EMA by more than the specified threshold, an alert condition is activated. Visual Aids: The 200 EMA is plotted on the chart for reference, and directional arrows are drawn: A sell arrow appears above the bar when the price is above the EMA. A buy arrow appears below the bar when the price is below the EMA. This setup helps traders visually and programmatically identify significant price movements relative to a key moving average.
Pine Script® indicator
by harshparikh1122
2
Enhanced BarUpDn StrategyEnhanced BarUpDn Strategy The Enhanced BarUpDn Strategy is a refined price action-based trading approach that identifies market trends and reversals using bar formations. It focuses on detecting bullish and bearish momentum by analyzing consecutive price bars and key support/resistance levels. Key Features: ✅ Trend Confirmation – Uses a combination of bar patterns and indicators (e.g., moving averages, RSI) to confirm momentum shifts. ✅ Entry Signals – A buy signal is triggered when an "Up Bar" (higher high, higher low) follows a bullish setup; a sell signal when a "Down Bar" (lower high, lower low) confirms bearish momentum. ✅ Enhanced Filters – Incorporates volume analysis and additional conditions to reduce false signals. ✅ Stop-Loss & Risk Management – Uses recent swing highs/lows for stop placement and dynamic trailing stops for maximizing gains.
Pine Script® strategy
by a4arjunsatheesh
MACD Divergence all in oneMACD Divergence all in one It can also be named as MACD dual divergence detector pro ! A sophisticated yet user-friendly tool designed to identify both bullish and bearish divergences using the MACD (Moving Average Convergence Divergence) indicator. This advanced script helps traders spot potential trend reversals by detecting hidden momentum shifts in the market, offering a comprehensive solution for divergence trading. 🎯 Key Features: • Automatic detection of bullish and bearish divergences • Clear visual signals with color-coded lines (Green for bullish, Red for bearish) • Smart filtering system to eliminate false signals • Customizable parameters to match your trading style • Clean, uncluttered chart presentation • Optimized performance for real-time analysis • Easy-to-read labels showing divergence types • Built-in signal spacing to avoid clustering 📊 How it works: The indicator uses an advanced algorithm to analyze the relationship between price action and MACD momentum to identify: Bullish Divergences: - Price makes higher lows while MACD shows lower lows - Signals potential trend reversal from bearish to bullish - Marked with green lines and upward labels Bearish Divergences: - Price makes lower highs while MACD shows higher highs - Signals potential trend reversal from bullish to bearish - Marked with red lines and downward labels ⚙️ Customizable Settings: 1. MACD Parameters: - Fast Length (default: 12) - Slow Length (default: 26) - Signal Length (default: 9) 2. Divergence Detection: - Left/Right Pivot Bars - Divergence Lookback Period - Minimum/Maximum Divergence Length - Divergence Strength Filter 3. Visual Settings: - Clear color coding for easy identification - Adjustable line thickness - Customizable label size 💡 Best Practices: - Most effective on higher timeframes (1H, 4H, Daily) - Combine with support/resistance levels - Use with trend lines and price action - Consider volume confirmation - Best results during trending markets - Use appropriate stop-loss levels 🎓 Trading Tips: 1. Look for bullish divergences near support levels 2. Watch for bearish divergences near resistance zones 3. Confirm signals with other technical indicators 4. Consider market context and overall trend 5. Use proper position sizing and risk management ⚠️ Important Notes: - Past performance doesn't guarantee future results - Always use proper risk management - Test settings on historical data first - Different timeframes may require parameter adjustments - Not all divergences lead to reversals Created by: Anmol-max-star Last Updated: 2025-02-25 16:15:08 UTC 📌 Regular updates and improvements planned! Disclaimer: This indicator is for informational purposes only. Always conduct your own analysis and use proper risk management techniques. Trading involves risk of loss, and past performance does not guarantee future results. 🤝 Support: Feel free to leave comments for: - Suggestions - Improvements - Feature requests - Bug reports - General feedback Your feedback helps make this tool better for everyone! Happy Trading and May the Trends Be With You! 📈
Pine Script® indicator
by AnmolMaheshwari
2
Bar Color - Moving Average Convergence Divergence [nsen]The Pine Script you've provided creates a custom indicator that utilizes the MACD (Moving Average Convergence Divergence) and displays various outputs, such as bar color changes based on MACD signals, and a table of data from multiple timeframes. Here's a breakdown of how the script works: 1. Basic Settings (Input) • The script defines several user-configurable parameters, such as the MACD values, bar colors, the length of the EMA (Exponential Moving Average) periods, and signal smoothing. • Users can also choose timeframes to analyze the MACD values, like 5 minutes, 15 minutes, 1 hour, 4 hours, and 1 day. 2. MACD Calculation • It uses the EMA of the close price to calculate the MACD value, with fast_length and slow_length representing the fast and slow periods. The signal_length is used to calculate the Signal Line. • The MACD value is the difference between the fast and slow EMA, and the Signal Line is the EMA of the MACD. • The Histogram is the difference between the MACD and the Signal Line. 3. Plotting the Histogram • The Histogram values are plotted with colors that change based on the value. If the Histogram is positive (rising), it is colored differently than if it's negative (falling). The colors are determined by the user inputs, for example, green for bullish (positive) signals and red for bearish (negative) signals. 4. Bar Coloring • The bar color changes based on the MACD's bullish or bearish signal. If the MACD is bullish (MACD > Signal), the bar color will change to the color defined for bullish signals, and if it's bearish (MACD < Signal), the bar color will change to the color defined for bearish signals. 5. Multi-Timeframe Data Table • The script includes a table displaying the MACD trend for different timeframes (e.g., 5m, 15m, 1h, 4h, 1d). • Each timeframe will show a colored indicator: green (🟩) for bullish and red (🟥) for bearish, with the background color changing based on the trend. 6. Alerts • The script has alert conditions to notify the user when the MACD shows a bullish or bearish entry: • Bullish Entry: When the MACD turns bullish (crosses above the Signal Line). • Bearish Entry: When the MACD turns bearish (crosses below the Signal Line). • Alerts are triggered with custom messages such as "🟩 MACD Bullish Entry" and "🟥 MACD Bearish Entry." Key Features: • Customizable Inputs: Users can adjust the MACD settings, histogram colors, and timeframe options. • Visual Feedback: The color changes of the histogram and bars provide instant visual cues for bullish or bearish trends. • Multi-Timeframe Analysis: The table shows the MACD trend across multiple timeframes, helping traders monitor trends in different timeframes. • Alert Conditions: Alerts notify users when key MACD crossovers occur.
Pine Script® indicator
by N_SEN