OPEN-SOURCE SCRIPT
MAC-Z & MACD Leader signal [ChuckBanger]
This is a combination of my MACD Leader script and MAC-Z with option to add Laguerre filter. The advantage of the MAC-Z over MACD is that it is a more accurate and “assumption-free” indicator that can more accurately describe how a market actually perform. But you can use this as a regular MACD indicator.
Crossovers signals
The MAC-Z line and signal line can be utilized in the same way as a stochastic oscillator, with the crossover between the two lines providing buy and sell signals. As with most crossover strategies, a buy signal comes when the shorter-term, more reactive line – in this case the MAC-Z line (blue line) crosses above the slower signal line (orange line). For example, when the MAC-Z line crosses below the signal line it provides a bearish sell signal.
Zero line crossing
The zero cross strategy is based on either of the lines crossing the zero line. If the MAC-Z crosses the zero line from below, it is a signal for a possible new uptrend, while the MAC-Z crossing from above is a signal that a new downtrend may be starting. This is special powerful if the lines has a fast up or down movement but the price action doesn't reflect that movement.
Divergences
Bearish and bullish divergences is my favorite signals. When price action and oscillators follow the same path it is called Convergences, when they don’t, it’s called a Divergence. Don't confuse the two because they have not the same meaning. But be aware that for example during consolidation or low liquidity, some small divergences between price and indicators might form, but that doesn't mean we should consider them as real divergences.
There is many different types of divergences. It is easier to show a picture then explaining it so I recommend you to check out the link below. Especially the top image. It sums this up very well
https://medium.com/@alchemybottrading/understanding-divergences-for-crypto-trading-6a589d5cf72c
MACD Leader
The MACD leader is only showing the crossing of MACD as a vertical line
MACD Leader:
https://www.tradingview.com/script/0yU3V6mL-MACD-Leader-ChuckBanger/
MAC-Z:
https://www.tradingview.com/script/SMqcSZyo-MAC-Z-ChuckBanger/
More Information
https://cssanalytics.wordpress.com/2010/05/11/the-relationship-between-the-macd-and-z-score-creating-the-mac-z-score/
https://en.wikipedia.org/wiki/MACD
https://drive.google.com/file/d/1Nr7kfZJ3pwM1meI8qzVBnpjLgzYZUHH1/view?usp=sharing
Crossovers signals
The MAC-Z line and signal line can be utilized in the same way as a stochastic oscillator, with the crossover between the two lines providing buy and sell signals. As with most crossover strategies, a buy signal comes when the shorter-term, more reactive line – in this case the MAC-Z line (blue line) crosses above the slower signal line (orange line). For example, when the MAC-Z line crosses below the signal line it provides a bearish sell signal.
Zero line crossing
The zero cross strategy is based on either of the lines crossing the zero line. If the MAC-Z crosses the zero line from below, it is a signal for a possible new uptrend, while the MAC-Z crossing from above is a signal that a new downtrend may be starting. This is special powerful if the lines has a fast up or down movement but the price action doesn't reflect that movement.
Divergences
Bearish and bullish divergences is my favorite signals. When price action and oscillators follow the same path it is called Convergences, when they don’t, it’s called a Divergence. Don't confuse the two because they have not the same meaning. But be aware that for example during consolidation or low liquidity, some small divergences between price and indicators might form, but that doesn't mean we should consider them as real divergences.
There is many different types of divergences. It is easier to show a picture then explaining it so I recommend you to check out the link below. Especially the top image. It sums this up very well
https://medium.com/@alchemybottrading/understanding-divergences-for-crypto-trading-6a589d5cf72c
MACD Leader
The MACD leader is only showing the crossing of MACD as a vertical line
- Green vertical line = MACD Leader Bullish Cross
- Red vertical line = MACD Leader Bearish Cross
MACD Leader:
https://www.tradingview.com/script/0yU3V6mL-MACD-Leader-ChuckBanger/
MAC-Z:
https://www.tradingview.com/script/SMqcSZyo-MAC-Z-ChuckBanger/
More Information
https://cssanalytics.wordpress.com/2010/05/11/the-relationship-between-the-macd-and-z-score-creating-the-mac-z-score/
https://en.wikipedia.org/wiki/MACD
https://drive.google.com/file/d/1Nr7kfZJ3pwM1meI8qzVBnpjLgzYZUHH1/view?usp=sharing
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Tip jar, if you want to support my indicators work
BTC: 3EV8QGKK689kToo1r8pZJXbWDqzyJQtHy6
LTC: LRAikFVtnqY2ScJUR2ETJSG4w9t8LcmSdh
BTC: 3EV8QGKK689kToo1r8pZJXbWDqzyJQtHy6
LTC: LRAikFVtnqY2ScJUR2ETJSG4w9t8LcmSdh
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.