[blackcat] L1 Another Improved MACD Indicator

5 de out. de 2020

Level: 1

Background

The MACD is a superior derivative of moving average crossovers and was developed by Gerald Appel in 1979 as a market timing tool. MACD uses two exponential moving averages with different bar periods, which are then subtracted to form what Mr. Appel calls the Fast Line. A 9-period moving average of the fast line creates the slow line.

Function

[blackcat] L1 Another Improved MACD Indicator improves MACD histogram by customized an algorithm and add three levels of long entry alerts derived from ema ().

Key Signal

diff --> classic MACD diff fast line in white
dea --> classic MACD dea slow line in yellow
macd --> classic difference histogram,but I did not use it directly in the plot.
macd1 --> ema3 of macd

Pros and Cons

Pros:

1. more clear sub level trend change with new histograms


Cons:

1. need sophisticated knowledge of MACD to use this well
2. this still requires a lot of MACD experience to obtain reliable trading signals


Remarks

Another improved MACD on histogram

Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.

25 de mar.

Notas de Lançamento

OVERVIEW

The [blackcat] L1 Another Improved MACD Indicator provides an advanced interpretation of the classic MACD oscillator with enhanced visualization tools. This script combines exponential moving averages (EMAs), dynamic coloring schemes, and real-time buy/sell signal markers to improve trading decision-making.

FEATURES

Adjustable input parameters:
• Customizable fast/EMA period
• Customizable slow/EMA period
• Configurable signal line period

Enhanced calculation methodology:
✓ Uses EMA-based core components
✓ Includes unique MACD_Signal_EMA (3-period EMA of histogram)
✓ Generates distinct histogram display with embedded trend analysis

Interactive visualization features:
✅ Color-coded MACD-Signal overlap zones
✅ Dynamic histogram coloring relative to MACD_Signal_EMA
✅ Real-time B/S arrow labels for trade confirmation

HOW TO USE

Adjust input parameters using the settings panel
Analyze main MACD-line vs signal-line relationship shown in filled area
Monitor histogram trends compared to MACD_Signal_EMA:
→ Red = bullish divergence dominance
→ Green = bearish divergence dominance
→ Yellow = neutral/trend uncertainty phase
Act on labeled buy ("B")/sell ("S") signals appearing during crossovers

LIMITATIONS

• Lag potential due to multi-layered EMA calculations
• Overlap warnings when combining with price-action strategies
• Requires volatility adjustments for optimal performance in trending markets

NOTES

• All signals require prior bar validation for accuracy
• Color thresholds optimized for default timeframes (adjustments may needed for sub-minute charts)