This is a highly stable, volatility adaptive, Moving Average Convergence Divergence (MACD) that uses a modified calculation based on improved logarithmic measurements of the momentum.
1- This MACD provides the trader with most accurate detection of divergences, both regular and hidden ones, and shows them on the MACD Histogram.
2- Furthermore, the MACD/Signal divergences are also easily detectable (unlike the regular MACD which often does not provide accurate divergences; see the screenshot for comparison).
3- Finally, due to some different calculation methods, this MACD, unlike the regular MACD, is highly stable in higher time frames even in the most volatile markets (such as BTC, ETH, ADA, etc...) and thus can easily be utilized for the market prediction state in the crypto (see the screenshot for comparison).
Use it and let me know what you think about it in comparison to regular MACD!
I have noticed this is an extremely lagging indicator, the signals only show after the market has moved, cool idea but this does not work. The signal shows after the move has already been made....it is all just for show.
demooon
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@ccrjared, exactly!! after 3 or 4 hourly candles that you get the indicator bear or bull. Kind of stupid in my opinion.
ccrjared
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I am also wondering how to set for correct alert methods. Thanks for sharing this indicator.
block_muncher
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This has become my latest favorite indicator. Yes, 2 whole years later and I love to use it. Slightly better than plain MACD. I dont use the divergences at all, I turn them off. I just look for momentum on the histogram and lines. I am very curious to get the source code for this. I would like to add a measure of the differences in the histogram bars. Aka, how fast are the histogram bars moving. Sometimes when they barely budge, it means different things to me than when they jump large amounts. Seeing this in a better way than zooming way in on the histogram would be nice. I will DM you if I can @UnknownUnicorn11161970
AtomOfScent
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It looks good. If it were open source I might look to integrate some of the modifications into my own indicators