ERAK MACD PRO

ERAK MACD PRO – Advanced Momentum & Divergence Suite
Overview
ERAK MACD PRO is a professional-grade upgrade to the standard MACD. It transforms the classic indicator into a complete trading system by adding 4-color momentum tracking, automatic divergence detection, crossover signals, and dynamic trendlines. It is designed to help traders spot trend reversals earlier than standard methods.
Key Features
1. Advanced 4-Color Histogram (Momentum Visualizer)
Unlike the standard 2-color MACD, this indicator uses 4 distinct colors to visualize the strength of the trend:
• Dark Green: Strong Bullish Momentum (Price is rising strongly).
• Light Green: Weakening Bullish Momentum (Price is rising, but power is fading – Warning sign).
• Dark Red: Strong Bearish Momentum (Price is falling strongly).
• Light Red: Weakening Bearish Momentum (Selling pressure is fading – Reversal may be near).
2. Automatic Buy & Sell Signals
Eliminates the need to squint at lines.
• Green Circle: Appears when the MACD Line crosses above the Signal Line (Bullish Crossover).
• Red Circle: Appears when the MACD Line crosses below the Signal Line (Bearish Crossover).
3. Divergence Hunter (Reversal Spotter)
The script automatically scans for discrepancies between Price and Momentum, which are the strongest signals for trend reversals.
• BULL (Green Label): Bullish Divergence. The Price is making Lower Lows, but MACD is making Higher Lows. This suggests sellers are exhausted and a bounce is imminent.
• BEAR (Red Label): Bearish Divergence. The Price is making Higher Highs, but MACD is making Lower Highs. This suggests buyers are exhausted and a drop is likely.
4. Auto-Trendlines on MACD
A unique feature that draws Support and Resistance lines directly on the MACD oscillator.
• Red Dashed Line: Connects the recent peaks of the MACD. A breakout above this line often precedes a price explosion.
• Green Dashed Line: Connects the recent bottoms of the MACD. A breakdown below this line signals a loss of trend support.
Settings & Inputs
• MACD Settings: Fully customizable Fast Length (12), Slow Length (26), and Signal Smoothing (9). You can also switch between SMA and EMA.
• Visuals: You can toggle Signals, Divergences, and Trendlines on or off to keep your chart clean.
• Lookback Period: Adjust how far back the script looks to find pivots for Divergences and Trendlines (Default is optimized for most timeframes).
How to Trade with ERAK MACD PRO
1. Wait for Confluence: The strongest trades happen when you see a "BULL" Divergence label followed shortly by a Green Buy Circle.
2. Watch the Trendlines: If the Blue MACD line breaks the Red Dashed Trendline upwards, it is a significant breakout signal.
3. Monitor Histogram Colors: If the histogram changes from Dark Green to Light Green, consider tightening your stop-losses or taking profit.