It´s just the histogram of the MACD. (Actually it´s not a histogram, I like the Area visualisation more. But you can switch.)
When I´m using the MACD, I´m just searching for a divergence between Price and the MACD-histogram. I´m not interested in the MACD-signalline or the MACD-line in any way. As you can see, The omission of them leads to better visualisation....
This is only a slight modification to the existing "MACD Strategy" strategy plugin!
found the default MACD strategy to be lacking, although impressive for its simplicity. I added "year>2014" to the IF buy/sell conditions so it will only backtest from 2015 and beyond**.
I also had a problem with the standard MACD trading late, per se. To that end I modified the...
Upgraded version of "Day_trade" script.
There is a late entry and a late closing, and the number of trades is less than the "Fast_Trade" script.
Please refer to the description of the old version for a detailed explanation.
Newer version of Momentum indicator introducing 4 colors so easy to spot momentum bars ticking up or down. User can customize the colors etc and turning the MACD/Signal lines on/off.
This script is open to public so anyone can use it.
This version detailed which indicator have divergence
it combines: RSI-CCI-MACD-STOCHASTIC in same indicator
and detects divergence in the 4 indicators and send sell or buy signals when detects 2 or more divergence in same time.
This version have added the legth of traceback to set up the quality of the signals.
You can configurates to obtain alerts of that signals.
My indicator detects divergence above 0 and below 0 .
Easy to use.
So that there is no confusion is the indicator at the bottom, oblique red or green lines are to demonstrate more visual the indicator does not make oblique lines, is the indicator on the bottom.
Green cross is bullish divergence and red cross is bearish divergence.
I offer access plans to all...
//Original creator ChrisMoody with credits to TheLark as well
//Edit & additions by HeCormier
//MACD indicator with histogram. Plots 4 colors based on direction above and belwo teh zero line.
//Backgrown color print based on divergence of macd trend & histogram loss of momentum.
//Recommend using with RSI divergence and CCI coded OBV for confirmations.