OPEN-SOURCE SCRIPT
vwMACD_VXI+CMF
NOTE: Not useful for <15 mins timeframes.
Hey!
I added a CMF to read market control. It gives a bit mire insight than the casual MACD Histogram, since it's formula is also based on volume and not just in price change.
How yo read CMF:
Possitive value = Bulls are in control of the market
Negative value = Bears are in control the market
Impulsive divergence = Bulls are taking the control, Bears are loosing it (yellow example)
Corrective divergence = Bears are taking the control, Bulls are loosing it (no example, but its the opposite, try to find it out :o)
You can study divergencies and convergencies to read the trend strenght, while you can check the trend development via the MACD crossing over.
MACD to check an opportunity, CMF to check if it's a good or a shitty one ;)
As you can see,
yellow divergencies = CMF
purple divergencies = MACD
Also, check my StotRSI Oscillator + ADX for trend strenght + Buy/Sell point script, it does a great job with vwMACD+CMF! ;)
For any question, just shoot it on the comments.
Cheers!
Hey!
I added a CMF to read market control. It gives a bit mire insight than the casual MACD Histogram, since it's formula is also based on volume and not just in price change.
How yo read CMF:
Possitive value = Bulls are in control of the market
Negative value = Bears are in control the market
Impulsive divergence = Bulls are taking the control, Bears are loosing it (yellow example)
Corrective divergence = Bears are taking the control, Bulls are loosing it (no example, but its the opposite, try to find it out :o)
You can study divergencies and convergencies to read the trend strenght, while you can check the trend development via the MACD crossing over.
MACD to check an opportunity, CMF to check if it's a good or a shitty one ;)
As you can see,
yellow divergencies = CMF
purple divergencies = MACD
Also, check my StotRSI Oscillator + ADX for trend strenght + Buy/Sell point script, it does a great job with vwMACD+CMF! ;)
For any question, just shoot it on the comments.
Cheers!
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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