4MACD allows you to see all facets of the current condition or that of a coming change in one pane. You can see the direction of the current momentum. You can see the initiation of a change; you can then see that change occur as the price and momentum move in an opposite direction.
Note that you still need to use other indicators like BB, OBV for confirmation. More details at omniumsoftware.com/FourMACD.htm
BTW, I am not a trader, but a coder. I spend lot of time here at TV and have learnt a lot about how pro-traders think.
This is my way of giving back to TV community. Hope you find this useful (do check out my other indicators). Appreciate any comments / feedback.
LazyBear...I have no idea if this indicator is Great...or Useless....But You Have MAD CODING SKILLS!!! I can think of a few indicators I need to re write with the coloring feature you use....
LazyBear
⋅
Thanks.
timwest
⋅
Could you highlight a time when you see it "setting up" for a trade? That would be helpful too! Keep up the good work and I hope your coding turns into trading profits. Best regards, Tim
LazyBear
⋅
Thx timwest. I picked up this indicator recently too. afaik, this is how to interpret this:
When red is on top and green on the bottom – you want to be short or in cash.
There are two additional colors that help one determine when to enter and when to exit.
When green is on top and one notices that the tips of the green histogram are turning yellow and the red histograms on the bottom are getting blue tips – go to cash now or short now.
When red is at the top and starts to form blue tips or yellow tips are forming on the green while green is in the bottom of the chart – one wants to go long with the fund or stock.
Need confirmation from other indicators, I have seen people suggest BB/TVI.