[blackcat] L1 Improved MACD Indicator

29 سبتمبر 2020

Level: 1

Background

The MACD is a superior derivative of moving average crossovers and was developed by Gerald Appel in 1979 as a market timing tool. MACD uses two exponential moving averages with different bar periods, which are then subtracted to form what Mr. Appel calls the Fast Line. A 9-period moving average of the fast line creates the slow line.

Function

[blackcat] L1 Improved MACD Indicator mainly improves MACD histogram by customized an algorithm and add three levels of long entry alerts derived from ema().

Key Signal

buy1 --> the 1st level of buy alert in green
buy2 --> the 2nd level of buy alert in lime
buy3 --> the 3rd level of buy alert in yellow
diff --> classic MACD diff fast line in white
dea --> classic MACD dea slow line in yellow
macd --> classic difference histogram,but I did not use it directly in the plot.

Pros and Cons

Pros:

1. more clear sub level trend change with new histograms
2. three levels of buy alerts


Cons:

1. need sophisticated knowledge of MACD to use this well
2. this still requires a lot of MACD experience to obtain reliable trading signals


Remarks

I am a fan of MACD. Even the most classic MACD can have in-depth usage. I think MACD is the king of indicators.

Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.

30 سبتمبر 2020

ملاحظات الأخبار

In order to obey the House Rule, remove the irrelevant MA Cross display.

24 مارس

ملاحظات الأخبار

OVERVIEW

A refined MACD indicator displaying multiple automated buy signals alongside customizable MACD visuals. Combines smoothed price analysis and momentum tracking across varying time frames.

FEATURES

• Triple buy signal zones:

Green (Price momentum crossover + recent low validation)
Lime (Consistent upward momentum over 3 bars + extreme lows detected)
Yellow (Extended bearish convergence with pattern confirmation)

• Adjustable MACD configuration:
✓ Custom fast/slow EMA lengths
✓ Signal smoothing period adjustment

• Dynamic histogram display showing real-time momentum shifts:
• Bullish trend segments shown in green/purple gradients
• Bearish movements rendered in red/yellow shades

• Backtest-ready architecture using historical value interpolation via built-in functions

HOW TO USE

Configure parameters:
▪ MACD Fast Length (default 12)
▪ MACD Slow Length (default 26)
▪ Signal Smoothing Period (default 9)

Monitor active buy signals displayed as colored area layers

Track histogram color transitions for momentum directional clues

Adjust lookback periods in source code for sensitivity optimization

LIMITATIONS

Requires minimum X bars of historical data to avoid NaN errors
Over-reliance on previous bar comparisons may create lag during rapid reversals
Pattern-based triggers may produce false positives during volatile markets

NOTES

Core algorithm combines:
✓ Normalized momentum derived from dual SMAs
✓ Price deviation measurement against extended timeframe baselines
✓ Multi-bar condition aggregates for risk mitigation

MACD line formula emphasizes divergence amplification (2*(diff-dea))