PROTECTED SOURCE SCRIPT

Adaptive Strength MACD [UM]

65
Indicator Description
Adaptive Strength MACD [UM] is an adaptive variant of the classic MACD that uses a customized Strength Momentum moving average for both its oscillator and signal lines. This makes the indicator more responsive in trending conditions and more stable in sideways markets.

istantanea

Key Features

1. Adaptive Strength Momentum MA
Leverages the Adaptive Momentum Oscillator to scale smoothing coefficients dynamically.

2. Trend-Validity Filters
Optional ADX filter ensures signals only fire when trend strength (ADX) exceeds a user threshold.

3. Directional Filter (DI+) confirms bullish or bearish momentum.

4. Color-Coded Histogram

5. Bars turn bright when momentum accelerates, faded when slowing.

6. Grayed out when trend filters disqualify signals.

7. Alerts
Bullish crossover (histogram from negative to positive) and bearish crossover (positive to negative) only when filters validate trend.

istantanea


Comparison with Regular MACD

1. Moving Averages

Classic MACD uses fixed exponential moving averages (EMAs) for its fast and slow lines, so the smoothing factor is constant regardless of how strong or weak price momentum is.

Adaptive Strength MACD [UM] replaces those EMAs with a dynamic “Strength Momentum” MA that speeds up when momentum is strong and slows down in quiet or choppy markets.

2. Signal Line Smoothing

In the classic MACD, the signal is simply an EMA of the MACD line, with one user-selected period.

In the Adaptive Strength MACD [UM], the signal line also uses the Strength Momentum MA on the MACD series—so both oscillator and signal adapt together to the underlying momentum strength.

3. Responsiveness to Momentum

A static EMA reacts the same way whether momentum is surging or fading; you either get too-slow entries when momentum spikes or too-fast whipsaws in noise.

The adaptive MA in your indicator automatically gives you quicker crossovers when there’s a trending burst, while damping down during low-momentum chop.

4. Trend Validation Filters

The classic MACD has no built-in mechanism to know whether price is actually trending versus ranging—you’ll see crossovers in both regimes.

Adaptive Strength MACD [UM] includes optional ADX filtering (to require a minimum trend strength) and a DI filter (to confirm bullish vs. bearish directional pressure). When those filters aren’t met, the histogram grays out to warn you.

5. Histogram Coloring & Clarity

Typical MACD histograms often use two colors (above/below zero) or a simple ramp but don’t distinguish accelerating vs. decelerating moves.

Your version employs four distinct states—accelerating bulls, decelerating bulls, accelerating bears, decelerating bears—plus a gray “no-signal” state when filters fail. This makes it easy at a glance to see not just direction but the quality of the move.

6. False-Signal Reduction

Because the classic MACD fires on every crossover, it can generate whipsaws in ranging markets.

The adaptive MA smoothing combined with ADX/DI gating in your script helps suppress those false breaks and keeps you focused on higher-quality entries.

7. Ideal Use Cases

Use the classic MACD when you need a reliable, well-understood trend-following oscillator and you’re comfortable manually filtering choppy signals.

Choose Adaptive Strength MACD \[UM] when you want an all-in-one, automated way to speed up in strong trends, filter out noise, and receive clearer visual cues and alerts only when conditions align.

istantanea


How to Use

1. Setup

- Adjust Fast and Slow Length to tune sensitivity.
- Change Signal Smoothing to smooth the histogram reaction.
- Enable ADX/DI filters and set ADX Threshold to suit your preferred trend strength (default = 20).

2. Interpretation

- Histogram > 0: Short‐term momentum above long‐term → bullish.
- Histogram < 0: Short‐term below long‐term → bearish.
- Faded greyed bars indicate a weakening move; gray bars show filter invalidation.

How to Trade

Buy Setup:

- Histogram crosses from negative to positive.
- ADX ≥ threshold and DI+ > DI–.
- Look for confirmation (bullish candlestick patterns or support zone).

Sell Setup:

- Histogram crosses from positive to negative.
- ADX ≥ threshold and DI– > DI+.
- Confirm with bearish price action (resistance test or bearish pattern).

Stop & Target

- Place stop just below recent swing low (long) or above recent swing high (short).
- Target risk–reward of at least 1:2, or trail with a shorter‐period adaptive MA.

istantanea

Declinazione di responsabilità

Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.