Searching for entries matching ob, looking in keywords for any words Found 2 matching entries
Entries
1864
radi8
MACDcolors Version 1.1
Author: radi8
Trading Group Affiliation: TeamPIPPEdge
Yes, I know, there are an infinite number of variations on the MACD indicator.
That said, I wanted an MACD that I could define overbought and oversold conditions for. That is difficult to do given the different tick sizes of various instruments. So I created a normalized MACD. So this will plot with similar values whether you are trading the 6J or the YM. With this in mind, you can establish OB/OS levels in the indicator. The indicator will trigger alerts when there is a crossover in OB/OS territory. In general, I've found that values between 5 and 10 are good for the OB/OS levels. When a crossover happens in this region, a trend reversal is more likely. When the indicator is moving between the OB/OS levels, it is generally not a great time to enter the market.
Also, I like simple. So this indicator just shows one colored plot. It changes colors when the MACD and AVE plots cross, showing only one line. I still include all the normal data series you can access (Default, Ave, Diff). There are several DataSeries you can access for strategies as well as for market analyzers. You can also define time zones for the alerts. If there is a particular strategy you trade off the MACD that is time sensitive, this will allow you to define that time block when you would like to be alerted.
The screenshot shows this indicator with my CandleStickDoctor indicator.
Cheers!
radi8
UPDATE (1/31/17)
I found a small bug with the time logic that I corrected. If you want the indicator to generate signals at all times, set all the time bins to -1.
Also added the ability to select different MA's as the source for the MACD.