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INVITE-ONLY SCRIPT
Updated

MACD Momentum Indicator

2 505
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.
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 off

Added 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

Only users authorized by the author have access to this script, and this usually requires payment. You can add the script to your favorites, but you will only be able to use it after requesting permission and obtaining it from its author — learn more here. For more details, follow the author's instructions below or contact ThePuma directly.

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Author's instructions

Warning: please read our guide for invite-only scripts before requesting access.

ThePuma
Also on:
Moving AveragesTrend Analysis

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Moving AveragesTrend Analysis

Invite-only script

Only users authorized by the author have access to this script, and this usually requires payment. You can add the script to your favorites, but you will only be able to use it after requesting permission and obtaining it from its author — learn more here. For more details, follow the author's instructions below or contact ThePuma directly.

TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.

Author's instructions

Warning: please read our guide for invite-only scripts before requesting access.

ThePuma
Also on:

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.