MACD-V with Volatility Normalisation [DCD]

This indicator is a modified version of the traditional MACD, designed to account for market volatility by normalizing the MACD line using the Average True Range (ATR). It provides a more adaptive approach to identifying momentum shifts and potential trend reversals. This indicator was developed by Alex Spiroglou in this paper:
Spiroglou, Alex, MACD-V: Volatility Normalised Momentum (May 3, 2022).
Features:
- Volatility Normalization: The MACD line is adjusted using ATR to standardize its values across different market conditions.
- Customizable Parameters: Users can adjust the MACD fast length, slow length, signal line smoothing, and ATR length to suit their trading style.
- Histogram Visualization: The histogram highlights the difference between the MACD and signal lines, with customizable colors for positive and negative momentum.
- Crossover Signals: Green and red dots indicate bullish and bearish crossovers between the MACD and signal lines.
- Background Highlighting: The chart background changes to green when the MACD is above 0 and red when it is below 0, providing a clear visual cue for bullish and bearish conditions.
- Horizontal Levels: Dotted horizontal lines are plotted at key levels for better visualization of MACD values.
How to Use:
- Look for crossovers between the MACD and signal lines to identify potential buy or sell signals.
- Use the histogram to gauge the strength of momentum.
- Pay attention to the background color for quick identification of bullish (green) or bearish (red) conditions.
This indicator is ideal for traders who want a more dynamic MACD that adapts to market volatility. Customize the settings to align with your trading strategy and timeframe.
Skrip sumber terbuka
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Penafian
Skrip sumber terbuka
Dalam semangat sebenar TradingView, pencipta skrip ini telah menjadikannya sumber terbuka supaya pedagang dapat menilai dan mengesahkan kefungsiannya. Terima kasih kepada penulis! Walaupun anda boleh menggunakannya secara percuma, ingat bahawa menerbitkan semula kod ini adalah tertakluk kepada Peraturan Dalaman kami.
Untuk akses pantas pada carta, tambah skrip ini kepada kegemaran anda — ketahui lebih lanjut di sini.