OPEN-SOURCE SCRIPT
MACD-VWAP-BB Indicator
MACD-VWAP-BB Indicator Description
This Pine Script creates a technical analysis indicator called the "MACD-VWAP-BB Indicator" for use on TradingView. It combines three popular indicators—MACD (Moving Average Convergence Divergence), VWAP (Volume Weighted Average Price), and Bollinger Bands—to generate buy and sell signals on a chart. The indicator plots visual signals (triangles) to help traders identify potential entry points based on the combined signals from these indicators.
What This Indicator Does
Calculates MACD: Measures momentum by comparing two moving averages of the price.
Calculates VWAP: Tracks the average price weighted by volume to gauge whether the price is above or below a "fair" value.
Calculates Bollinger Bands: Identifies volatility and potential overbought or oversold conditions based on price deviation from a moving average.
Combines Signals: Merges the signals from MACD, VWAP, and Bollinger Bands to create a single oscillator.
Generates Buy/Sell Signals: Plots green triangles below the price for buy signals and red triangles above for sell signals when all indicators align.
How It Works
Inputs You Can Customize:
MACD Fast Length (Default: 6): The shorter moving average period for MACD.
MACD Slow Length (Default: 13): The longer moving average period for MACD.
MACD Signal Length (Default: 5): The period for the MACD signal line.
Bollinger Bands Length (Default: 10): The period for calculating the Bollinger Bands' moving average.
Bollinger Bands Multiplier (Default: 1.5): Controls the width of the Bollinger Bands.
VWAP Lookback (Default: 7): The period for calculating VWAP.
Signal Line Smoothing Period (Default: 5): Smooths the combined signal for clarity.
Signal Confirmation Delay (Default: 1): The number of bars to confirm a signal, reducing false signals.
Indicator Calculations:
MACD: Generates a +1 signal for bullish crossovers (MACD line above signal line) or -1 for bearish crossunders.
VWAP: Gives a +1 signal if the price is above VWAP (bullish) or -1 if below (bearish).
Bollinger Bands: Signals +1 if the price is above the upper band (overbought) or -1 if below the lower band (oversold).
Combined Signal: Adds the three signals (ranging from -3 to +3) and smooths them to create an oscillator.
Buy/Sell Signals: A buy signal occurs when the combined signal is +3 (all indicators bullish) and the oscillator crosses above its signal line. A sell signal occurs when the combined signal is -3 (all indicators bearish) and the oscillator crosses below its signal line. Signals are confirmed within the specified delay period.
Visual Output:
Buy Signals: Green triangles appear below the price bars when conditions for a buy are met.
Sell Signals: Red triangles appear above the price bars when conditions for a sell are met.
How to Use It
Add to Chart:
Copy the script into TradingView’s Pine Editor.
Click "Add to Chart" to apply it to your selected chart.
Adjust Inputs:
Go to the indicator’s settings to tweak parameters like MACD lengths, Bollinger Bands multiplier, or VWAP lookback to suit your trading style.
Interpret Signals:
Look for green triangles below bars for potential buy opportunities.
Look for red triangles above bars for potential sell opportunities.
Use in conjunction with other analysis tools, as no indicator guarantees profits.
Test First:
Backtest the indicator on historical data or use it in a demo account to understand its behavior before trading with real money.
Important Notes
Educational Purpose: This indicator is designed to assist with technical analysis and is not financial advice. Always conduct your own research before trading.
Risk Warning: Trading involves risks, and past performance does not guarantee future results. Use this indicator as part of a broader trading strategy.
Customization: Adjust the input settings to match your preferred timeframe or market (e.g., stocks, forex, crypto).
Limitations: The indicator may produce false signals in choppy or low-volatility markets. The confirmation delay helps reduce this but doesn’t eliminate it entirely.
Compliance with TradingView Rules
This script is shared under the Mozilla Public License 2.0, as noted in the code.
No proprietary claims are made, and the script is provided for educational purposes.
The description avoids promising specific trading results or profits, focusing on functionality and usage.
This Pine Script creates a technical analysis indicator called the "MACD-VWAP-BB Indicator" for use on TradingView. It combines three popular indicators—MACD (Moving Average Convergence Divergence), VWAP (Volume Weighted Average Price), and Bollinger Bands—to generate buy and sell signals on a chart. The indicator plots visual signals (triangles) to help traders identify potential entry points based on the combined signals from these indicators.
What This Indicator Does
Calculates MACD: Measures momentum by comparing two moving averages of the price.
Calculates VWAP: Tracks the average price weighted by volume to gauge whether the price is above or below a "fair" value.
Calculates Bollinger Bands: Identifies volatility and potential overbought or oversold conditions based on price deviation from a moving average.
Combines Signals: Merges the signals from MACD, VWAP, and Bollinger Bands to create a single oscillator.
Generates Buy/Sell Signals: Plots green triangles below the price for buy signals and red triangles above for sell signals when all indicators align.
How It Works
Inputs You Can Customize:
MACD Fast Length (Default: 6): The shorter moving average period for MACD.
MACD Slow Length (Default: 13): The longer moving average period for MACD.
MACD Signal Length (Default: 5): The period for the MACD signal line.
Bollinger Bands Length (Default: 10): The period for calculating the Bollinger Bands' moving average.
Bollinger Bands Multiplier (Default: 1.5): Controls the width of the Bollinger Bands.
VWAP Lookback (Default: 7): The period for calculating VWAP.
Signal Line Smoothing Period (Default: 5): Smooths the combined signal for clarity.
Signal Confirmation Delay (Default: 1): The number of bars to confirm a signal, reducing false signals.
Indicator Calculations:
MACD: Generates a +1 signal for bullish crossovers (MACD line above signal line) or -1 for bearish crossunders.
VWAP: Gives a +1 signal if the price is above VWAP (bullish) or -1 if below (bearish).
Bollinger Bands: Signals +1 if the price is above the upper band (overbought) or -1 if below the lower band (oversold).
Combined Signal: Adds the three signals (ranging from -3 to +3) and smooths them to create an oscillator.
Buy/Sell Signals: A buy signal occurs when the combined signal is +3 (all indicators bullish) and the oscillator crosses above its signal line. A sell signal occurs when the combined signal is -3 (all indicators bearish) and the oscillator crosses below its signal line. Signals are confirmed within the specified delay period.
Visual Output:
Buy Signals: Green triangles appear below the price bars when conditions for a buy are met.
Sell Signals: Red triangles appear above the price bars when conditions for a sell are met.
How to Use It
Add to Chart:
Copy the script into TradingView’s Pine Editor.
Click "Add to Chart" to apply it to your selected chart.
Adjust Inputs:
Go to the indicator’s settings to tweak parameters like MACD lengths, Bollinger Bands multiplier, or VWAP lookback to suit your trading style.
Interpret Signals:
Look for green triangles below bars for potential buy opportunities.
Look for red triangles above bars for potential sell opportunities.
Use in conjunction with other analysis tools, as no indicator guarantees profits.
Test First:
Backtest the indicator on historical data or use it in a demo account to understand its behavior before trading with real money.
Important Notes
Educational Purpose: This indicator is designed to assist with technical analysis and is not financial advice. Always conduct your own research before trading.
Risk Warning: Trading involves risks, and past performance does not guarantee future results. Use this indicator as part of a broader trading strategy.
Customization: Adjust the input settings to match your preferred timeframe or market (e.g., stocks, forex, crypto).
Limitations: The indicator may produce false signals in choppy or low-volatility markets. The confirmation delay helps reduce this but doesn’t eliminate it entirely.
Compliance with TradingView Rules
This script is shared under the Mozilla Public License 2.0, as noted in the code.
No proprietary claims are made, and the script is provided for educational purposes.
The description avoids promising specific trading results or profits, focusing on functionality and usage.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
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.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
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.