INVITE-ONLY SCRIPT
MACD Momentum Indicator
Updated
MACD is likely one of the most misunderstood indicators. It is typically plotted with three parts: MACD, Signal line, and histogram. Traders then have the impression that all three parts make up the MACD. In reality, only one plot is the MACD line which we use in our system.
This indicator isolates that MACD line and shows it as a histogram plot with separate colors for rising, falling, positive or negative. You can also view it as a line chart instead which is how I personally view it.
The last piece implemented in this version of the indicator is that you can choose to fill the bars. When you turn on the bar fill, the bar colors on the chart will match the color status of the MACD. This is a quick reference of the MACD.
MACD can be used for regular divergences, and when viewed as a line can also be used for hidden divergences. When above zero, momentum is considered positive. When below zero, it is considered negative.
Elliott Wavers can also utilize the MACD crossing up and down to isolate wave counts. This can be complex, but an impulse isolated on one time frame can be verified as completed once the MACD crosses the zero line on the same time frame.
This indicator isolates that MACD line and shows it as a histogram plot with separate colors for rising, falling, positive or negative. You can also view it as a line chart instead which is how I personally view it.
The last piece implemented in this version of the indicator is that you can choose to fill the bars. When you turn on the bar fill, the bar colors on the chart will match the color status of the MACD. This is a quick reference of the MACD.
MACD can be used for regular divergences, and when viewed as a line can also be used for hidden divergences. When above zero, momentum is considered positive. When below zero, it is considered negative.
Elliott Wavers can also utilize the MACD crossing up and down to isolate wave counts. This can be complex, but an impulse isolated on one time frame can be verified as completed once the MACD crosses the zero line on the same time frame.
Release Notes
Added Bull and Bear Divergence Markers. These can be turned off by unchecking the box in the inputs. Release Notes
Fixed error that leaves divergences on indicator when turned offAdded Signal line
Added alerts for MACD crossing Signal and MACD crossing Zero, added alerts for bull and bear divergences.
Release Notes
Updated the titles of the plots for clarity when using.Release Notes
Corrected an error with where the divergences would plot. Had a silly error on the absolute plotting. Release Notes
Updating to include the histogram (MACD - Signal Line)Invite-only script
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