This is a modified version of the MACD (Moving Average Convergence/Divergence) oscillator. Instead of using exponential moving averages this modified version make use of simple moving averages. The default periods for this modified version of MACD is 3/10/16. This modified version of the MACD oscillator is described in detailed in Appendix B in the book The Art and Science of Technical Analysis: Market Structure, Price Action and Trading Strategies by Adam Grimes.
I suggest you use this more advanced version instead tradingview.com/script/1kSTxrds-Advanced-MACD/ By setting the period to 3/10/16 and use simple moving averages instead of exponential moving averages and turn off volume weighting you can achieve the same results as this indicator.
modhelius
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This script is deprecated. It is today possible to use simple moving averages with standard MACD indicator in TradingView so I suggest to use that indicator instead.
By setting the period to 3/10/16 and use simple moving averages instead of exponential moving averages and turn off volume weighting you can achieve the same results as this indicator.