It´s just the histogram of the MACD. (Actually it´s not a histogram, I like the Area visualisation more. But you can switch.)
When I´m using the MACD, I´m just searching for a divergence between Price and the MACD-histogram. I´m not interested in the MACD-signalline or the MACD-line in any way. As you can see, The omission of them leads to better visualisation....
//Original creator ChrisMoody with credits to TheLark as well
//Edit & additions by HeCormier
//MACD indicator with histogram. Plots 4 colors based on direction above and belwo teh zero line.
//Backgrown color print based on divergence of macd trend & histogram loss of momentum.
//Recommend using with RSI divergence and CCI coded OBV for confirmations.
Upgraded version of "Day_trade" script.
There is a late entry and a late closing, and the number of trades is less than the "Fast_Trade" script.
Please refer to the description of the old version for a detailed explanation.
This version detailed which indicator have divergence
it combines: RSI-CCI-MACD-STOCHASTIC in same indicator
and detects divergence in the 4 indicators and send sell or buy signals when detects 2 or more divergence in same time.
This version have added the legth of traceback to set up the quality of the signals.
You can configurates to obtain alerts of that signals.
MACD Line instead of MACD histogram or area. This gives more opportunities to catch divergences.
I showed regular MACD Histogram on top and then this indicator on bottom and showed with the red and green lines where you could catch multiple bearish and bullish divergences using this indicator vs a regular MACD histogram.
Send me a private message to join my...
It combines 4 indicators in one.
it send 2OM signals when "2 or more" indicators are synchronized.
it can sent alert only buy or only sell signals and special alert All signals that is buy and sell signals in same alert
it combines rsi divergencye detector
macd divergence detector...