[blackcat] L1 Stick-Line Merged MACD

٩ أكتوبر ٢٠٢٠

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 Stick-Line Merged MACD merges dif and dea lines with macd sticks by the same color candles. The generation of candles help to confirm the trend contiuation. E.g. yellow candles indicate up trend continuation while blue candles indicate down trend continuation

Key Signal

dif --> classic MACD diff fast line in yellow
dea --> classic MACD dea slow line in fuchsia
macd --> classic difference histogram
upslmerge --> up trend continuation yellow candle merge condition
dnslmerge --> down trend continuation blue candle merge condition

Pros and Cons

Pros:

1. merged line and stick with candles help confirm trend reversal
2. long entry signal is indicated.


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

Merge lines and sticks of MACD into candles. Better view of the trend

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.

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ملاحظات الأخبار

OVERVIEW
This script combines multi-timeframe EMA analysis with a modified MACD oscillator to identify trending conditions and potential entry points. It visualizes bullish/bearish momentum through colored candle bars and provides buy/sell labels for actionable signals.

FEATURES
• Trend detection using 9 exponential moving averages (EMA) across 4-250 periods
• Integrated MACD histogram with dynamic coloring (bullish/red, bearish/blue)
• Real-time uptrend/downtrend condition highlighting via background shading
• Buy/sell signal labels at price levels where crossovers occur
• Zero line reference for neutral market identification

HOW TO USE

Open on any time frame chart (non-overlay mode required)
Monitor the following key elements:

• • Red/Yellow zones: Bullish momentum dominance • Blue/Fuchsia zones: Bearish momentum dominance • Background shade transitions: Confirm trend continuation strength

TREND INTERPRETATION GUIDE
• Uptrend confirmed when all EMAs show positive progression → Yellow background activated
• Downtrend validated by negative EMA slopes → Fuchsia background appears
• MACD bar colors indicate current momentum direction relative to prior values

LIMITATIONS
• Fixed parameter settings cannot be adjusted in real-time
• Requires sufficient historical data (>250 candles recommended) for accurate calculations
• Should not be used as standalone trading system - combine with other indicators

NOTES
• The 'stick-line' MACD plots represent composite trend behavior from multiple timeframes
• Label colors correspond to signal type (green-buying opportunity, red-selling indication)
• Backtesting may require parameter optimization due to fixed calculation lookbacks