MACD Buy/Sell Labels + Barcolor

3 日前

👉MACD Buy/Sell Labels + Barcolor

This advanced indicator combines the functionality of the MACD (Moving Average Convergence Divergence) with intuitive and customizable visual features, making it ideal for traders looking for an efficient tool to confirm buy and sell signals across any market.

It is based on the logical interpretation of a modified oscillator to improve its performance and simplify its usage. The indicator integrates seamlessly into the chart, offering an intuitive and easy-to-understand experience.

📍Labels (Buy/Sell):
The signals are generated automatically by crossovers between the Fast EMA and Slow EMA of the Gaussian MACD. It comes with a default configuration designed to favor clean crossovers while avoiding false signals.



🧪 Barcolor:
The color of the candles dynamically changes according to the range of the Gaussian MACD histogram. This allows for a clear visualization of the MACD's status without needing to display the full oscillator. This feature integrates with the labels, as explained in the "Interpretation" section, to significantly increase their probability of success. Both the ranges and colors are fully customizable through the settings panel.



⚙️ Settings:
All aspects of the indicator can be customized:

1-MACD: Like a standard MACD, you can adjust the EMA lengths and the signal smoothing to adapt it to your trading style and the markets you trade.

2-Barcolor: The predefined values highlight extreme levels for proper interpretation, as explained in the "Interpretation" section. However, intermediate levels are also included in case you want to implement them in your strategy. You can adjust these values based on what you consider "overbought" or "oversold." This flexibility allows adaptation to various assets, as oscillator behavior varies across different instruments.

3-Buy/Sell Filter:
The filter settings allow you to further refine the signals. The default values of -70 (Buy Filter) and 80 (Sell Filter) work best for me, but you can adjust them as you see fit. Keep in mind:
-Higher distance from zero: More filtered signals (fewer, but higher quality).
-Closer to zero: Less filtered signals (more frequent, but with increased risk of false signals).



🤔Interpretation:
As mentioned earlier, this follows the classic interpretation of a MACD oscillator: overbought/oversold levels combined with crossovers. However, the barcolor variable is what makes this indicator truly unique.



With barcolor, you can detect potential divergences and confirm them using the labels. When the oscillator reaches an extreme zone, barcolor provides a visual alert. Once the oscillator exits this zone, the candles revert to their normal color. This signals that the oscillator is dropping. If the price continues rising, this divergence can indicate an anomaly in the market. Waiting for confirmation from the label increases the probability of successful trades while detecting unusual market deviations without even looking at the oscillator.



Purpose:
This indicator is designed to help traders simplify the interpretation of the MACD. It can be used on any timeframe, but it was primarily tested using technical analysis concepts and basic liquidity principles. Its effectiveness improves significantly if you understand broader market dynamics.

Disclaimer:
This is purely an analytical tool and should NOT be considered as trading signals. Perform your own research and make decisions based solely on your responsibility. Thank you!