Avoid MACD False Crosses

[Piper2808t]

Is it possible to make the macd indicator avoid a false cross of its signal line i tried many divergence indicators with no luck. Pic will explain

 

[Human]

Most indicators do not adapt to the changing swing cycle length or magnitude. Risk management including cutting your losses short is the key. If you find an indicator that adapts to osculating and trending markets, you will be rich. The market naturally does what most people don't expect at any given time.

 

[JP782]

Its math, so its saying the 12 and 26 are out of steam moving the other way
when in doubt check higher timeframe

 

[autolox]

Personal Opinion here:

You could:

1) slow down your MACD using 33,100,13, often referred to as a "slow MACD" (or a host of other possibilities).

or

2) consider adapting your MACD to a longer timeframe. Shorter timeframes like this present the "noise" you're experiencing.

What you're illustrating here is a combination of divergence and the math of the MACD itself.

I have come to accept the formation you're illustrating to be referred to personally as a "MACD ramp". It happens a fair bit and is worth paying attention to.

In the code below, I've set up a MACD with a switch. I was in a group with some people who had their own settings they had discovered and also, I wanted to switch the MACD settings faster.

You can copy the code of the MACD you're working with into a new indicator script and set up inputs for your levels to mess around and see what works for you.

This script also has a set of labels that give you an indication of whether the MACD is bullish or bearish along with showing you the last 5 periods.

Another tactic I've looked at with some success is adjusting the MACD to calculate based on highs and lows vs. just the close. I've never tried this, but, if you do stay with close, try setting it one bar back by adding [1]. Since "close" varies during a bar, the idea of "locking down" the MACD to the previous and complete close of the last bar could bring some clarity. Again, I've never tried it with MACD, but, I have done it with success.

declare lower;

def data = close;
input MACD_type = {default SLOW, "FAST", TekMuNNee, Neo};
input averagetype = averageType.EXPONENTIAL;
input ShowNOWLabels = yes;
input ShowHOWLONGLabel = yes;
def fastlength;
def slowlength;
def MACDlength;

 
switch (MACD_Type) {
case SLOW:
    fastlength = 33;
    slowlength = 100;
    MACDlength = 13;
    
case FAST:
    fastlength = 12;
    slowlength = 26;
    MACDlength = 9;

case TekMunNee:
    fastlength = 5;
    slowlength = 9;
    MACDlength = 5;

case Neo:
    Fastlength = 5;
    slowlength = 8;
    MACDLength = 5;
}

def fastMacd = fastlength == 12 and slowlength == 26 and macdlength == 9;
def slowmacd = fastlength == 33 and slowlength == 100 and macdlength == 13;
def TekMuNNeeMACD = fastlength == 5 and slowlength == 9 and macdlength == 5;

def NeoMacd = fastlength == 5 and slowlength == 8 and macdlength == 5;

AddLabel(1,if slowmacd then "Slow MACD" else if fastmacd then "Fast MACD" else if tekmunneemacd then "TekMuNNee" else if NeoMacd then "MyNameIsNEO" else "AddOption", Color.YELLOW);
 
plot Value = MACD(fastLength, slowLength, MACDLength, averagetype).value;
plot Avg = MACD(fastLength, slowLength, MACDLength, averageType).Avg;
plot ZeroLine = 0;

value.setdefaultcolor(color.cyan);
avg.setdefaultcolor(color.yellow);
zeroline.setdefaultcolor(color.white);

def valueavg = average((value),14);
def valuehigh = highestall(valueavg);
#Addlabel(1,valuehigh,color.cyan);

 def bullish = value > avg;

addlabel(shownowlabels,if value is greater than avg then "BULL" else "BEAR",if bullish then color.green else color.red);

addlabel(ShowHOWLONGlabel,if value is greater than avg then "BULL1" else "BEAR1",if bullish then color.green else color.red);

addlabel(ShowHOWLONGlabel,if value[1] is greater than avg[1] then "BULL2" else "BEAR2",if bullish[1] then color.green else color.red);

addlabel(ShowHOWLONGlabel,if value[2] is greater than avg[2] then "BULL3" else "BEAR3",if bullish[2] then color.green else color.red);

addlabel(ShowHOWLONGlabel,if value[3] is greater than avg[3] then "BULL4" else "BEAR4",if bullish[3] then color.green else color.red);

addlabel(ShowHOWLONGlabel,if value[4] is greater than avg[4] then "BULL5" else "BEAR5",if bullish[4] then color.green else color.red);

 

[Piper2808t]

Personal Opinion here:

You could:

1) slow down your MACD using 33,100,13, often referred to as a "slow MACD" (or a host of other possibilities).

or

2) consider adapting your MACD to a longer timeframe. Shorter timeframes like this present the "noise" you're experiencing.

What you're illustrating here is a combination of divergence and the math of the MACD itself.

I have come to accept the formation you're illustrating to be referred to personally as a "MACD ramp". It happens a fair bit and is worth paying attention to.

In the code below, I've set up a MACD with a switch. I was in a group with some people who had their own settings they had discovered and also, I wanted to switch the MACD settings faster.

You can copy the code of the MACD you're working with into a new indicator script and set up inputs for your levels to mess around and see what works for you.

This script also has a set of labels that give you an indication of whether the MACD is bullish or bearish along with showing you the last 5 periods.

Another tactic I've looked at with some success is adjusting the MACD to calculate based on highs and lows vs. just the close. I've never tried this, but, if you do stay with close, try setting it one bar back by adding [1]. Since "close" varies during a bar, the idea of "locking down" the MACD to the previous and complete close of the last bar could bring some clarity. Again, I've never tried it with MACD, but, I have done it with success.

declare lower;

def data = close;
input MACD_type = {default SLOW, "FAST", TekMuNNee, Neo};
input averagetype = averageType.EXPONENTIAL;
input ShowNOWLabels = yes;
input ShowHOWLONGLabel = yes;
def fastlength;
def slowlength;
def MACDlength;

 
switch (MACD_Type) {
case SLOW:
    fastlength = 33;
    slowlength = 100;
    MACDlength = 13;
   
case FAST:
    fastlength = 12;
    slowlength = 26;
    MACDlength = 9;

case TekMunNee:
    fastlength = 5;
    slowlength = 9;
    MACDlength = 5;

case Neo:
    Fastlength = 5;
    slowlength = 8;
    MACDLength = 5;
}

def fastMacd = fastlength == 12 and slowlength == 26 and macdlength == 9;
def slowmacd = fastlength == 33 and slowlength == 100 and macdlength == 13;
def TekMuNNeeMACD = fastlength == 5 and slowlength == 9 and macdlength == 5;

def NeoMacd = fastlength == 5 and slowlength == 8 and macdlength == 5;

AddLabel(1,if slowmacd then "Slow MACD" else if fastmacd then "Fast MACD" else if tekmunneemacd then "TekMuNNee" else if NeoMacd then "MyNameIsNEO" else "AddOption", Color.YELLOW);
 
plot Value = MACD(fastLength, slowLength, MACDLength, averagetype).value;
plot Avg = MACD(fastLength, slowLength, MACDLength, averageType).Avg;
plot ZeroLine = 0;

value.setdefaultcolor(color.cyan);
avg.setdefaultcolor(color.yellow);
zeroline.setdefaultcolor(color.white);

def valueavg = average((value),14);
def valuehigh = highestall(valueavg);
#Addlabel(1,valuehigh,color.cyan);

 def bullish = value > avg;

addlabel(shownowlabels,if value is greater than avg then "BULL" else "BEAR",if bullish then color.green else color.red);

addlabel(ShowHOWLONGlabel,if value is greater than avg then "BULL1" else "BEAR1",if bullish then color.green else color.red);

addlabel(ShowHOWLONGlabel,if value[1] is greater than avg[1] then "BULL2" else "BEAR2",if bullish[1] then color.green else color.red);

addlabel(ShowHOWLONGlabel,if value[2] is greater than avg[2] then "BULL3" else "BEAR3",if bullish[2] then color.green else color.red);

addlabel(ShowHOWLONGlabel,if value[3] is greater than avg[3] then "BULL4" else "BEAR4",if bullish[3] then color.green else color.red);

addlabel(ShowHOWLONGlabel,if value[4] is greater than avg[4] then "BULL5" else "BEAR5",if bullish[4] then color.green else color.red);

wow thank you for this appreciate it

 

[vinvin]

Personal Opinion here:

You could:

1) slow down your MACD using 33,100,13, often referred to as a "slow MACD" (or a host of other possibilities).

or

2) consider adapting your MACD to a longer timeframe. Shorter timeframes like this present the "noise" you're experiencing.

What you're illustrating here is a combination of divergence and the math of the MACD itself.

I have come to accept the formation you're illustrating to be referred to personally as a "MACD ramp". It happens a fair bit and is worth paying attention to.

In the code below, I've set up a MACD with a switch. I was in a group with some people who had their own settings they had discovered and also, I wanted to switch the MACD settings faster.

You can copy the code of the MACD you're working with into a new indicator script and set up inputs for your levels to mess around and see what works for you.

This script also has a set of labels that give you an indication of whether the MACD is bullish or bearish along with showing you the last 5 periods.

Another tactic I've looked at with some success is adjusting the MACD to calculate based on highs and lows vs. just the close. I've never tried this, but, if you do stay with close, try setting it one bar back by adding [1]. Since "close" varies during a bar, the idea of "locking down" the MACD to the previous and complete close of the last bar could bring some clarity. Again, I've never tried it with MACD, but, I have done it with success.

declare lower;

def data = close;
input MACD_type = {default SLOW, "FAST", TekMuNNee, Neo};
input averagetype = averageType.EXPONENTIAL;
input ShowNOWLabels = yes;
input ShowHOWLONGLabel = yes;
def fastlength;
def slowlength;
def MACDlength;

 
switch (MACD_Type) {
case SLOW:
    fastlength = 33;
    slowlength = 100;
    MACDlength = 13;
   
case FAST:
    fastlength = 12;
    slowlength = 26;
    MACDlength = 9;

case TekMunNee:
    fastlength = 5;
    slowlength = 9;
    MACDlength = 5;

case Neo:
    Fastlength = 5;
    slowlength = 8;
    MACDLength = 5;
}

def fastMacd = fastlength == 12 and slowlength == 26 and macdlength == 9;
def slowmacd = fastlength == 33 and slowlength == 100 and macdlength == 13;
def TekMuNNeeMACD = fastlength == 5 and slowlength == 9 and macdlength == 5;

def NeoMacd = fastlength == 5 and slowlength == 8 and macdlength == 5;

AddLabel(1,if slowmacd then "Slow MACD" else if fastmacd then "Fast MACD" else if tekmunneemacd then "TekMuNNee" else if NeoMacd then "MyNameIsNEO" else "AddOption", Color.YELLOW);
 
plot Value = MACD(fastLength, slowLength, MACDLength, averagetype).value;
plot Avg = MACD(fastLength, slowLength, MACDLength, averageType).Avg;
plot ZeroLine = 0;

value.setdefaultcolor(color.cyan);
avg.setdefaultcolor(color.yellow);
zeroline.setdefaultcolor(color.white);

def valueavg = average((value),14);
def valuehigh = highestall(valueavg);
#Addlabel(1,valuehigh,color.cyan);

 def bullish = value > avg;

addlabel(shownowlabels,if value is greater than avg then "BULL" else "BEAR",if bullish then color.green else color.red);

addlabel(ShowHOWLONGlabel,if value is greater than avg then "BULL1" else "BEAR1",if bullish then color.green else color.red);

addlabel(ShowHOWLONGlabel,if value[1] is greater than avg[1] then "BULL2" else "BEAR2",if bullish[1] then color.green else color.red);

addlabel(ShowHOWLONGlabel,if value[2] is greater than avg[2] then "BULL3" else "BEAR3",if bullish[2] then color.green else color.red);

addlabel(ShowHOWLONGlabel,if value[3] is greater than avg[3] then "BULL4" else "BEAR4",if bullish[3] then color.green else color.red);

addlabel(ShowHOWLONGlabel,if value[4] is greater than avg[4] then "BULL5" else "BEAR5",if bullish[4] then color.green else color.red);

@autolox , Thanks for posting this awesome indicator. Is it possible to add sound alerts when value line crosses below 10% and when value line crosses above 90% (yes, its percent). Not sure what other modifications the code may require. Found a snippet of code (Thanks @MerryDay) that i modified / displays labels, not tested live or sure if it'll work. Posting code lines below with link to page.

Link
https://usethinkscript.com/threads/...list-for-thinkorswim.7745/page-12#post-139326

Modified untested code from link

def nMACD = MACD();
AddLabel(yes, value,
if value<0.01 then color.white else color.black );
AddLabel(yes, VALUE,
if VAlUE>99.9 then color.white else color.black );

 

[autolox]

@autolox , Thanks for posting this awesome indicator. Is it possible to add sound alerts when value line crosses below 10% and when value line crosses above 90% (yes, its percent). Not sure what other modifications the code may require. Found a snippet of code (Thanks @MerryDay) that i modified / displays labels, not tested live or sure if it'll work. Posting code lines below with link to page.

Link
https://usethinkscript.com/threads/...list-for-thinkorswim.7745/page-12#post-139326

Modified untested code from link

def nMACD = MACD();
AddLabel(yes, value,
if value<0.01 then color.white else color.black );
AddLabel(yes, VALUE,
if VAlUE>99.9 then color.white else color.black );

On your last line, I figure you'll need to make that .99 vs. 99.9.

I'm away from the desk for vacation, so, it'll be a bit before I can try the % idea. Another thing you can do is average the two lines into one single line.

 

[vinvin]

On your last line, I figure you'll need to make that .99 vs. 99.9.

I'm away from the desk for vacation, so, it'll be a bit before I can try the % idea. Another thing you can do is average the two lines into one single line.

Thank you for taking time to respond while on vacation! This website has contributed significantly to my wealth of indicator knowledge. Its been a couple of years of hard work and taking significant losses to be where I am today, as is the norm for many new traders, I guess! As mentioned in a couple of posts before, this could be something big or fizzle out (as it did in those posts!) and feel uneasy posting untested code. Would feel more comfortable publicly posting reasonably tested code. You are the author of this indicator, hence reaching out to you.

07/25/24:edited out my personal info

 

[LLP]

The solution to MACD indicator is :
1. if Ribbon is dead cross , I wouldn't BUY again.
2.Wait until the ribbon golden cross again.

MACD ribbon cross down if stock still goes up, that's call Divergence. You should be alert -about time to get out.