MACD-V For ThinkOrSwim

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DaysOff

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MACD-V: Volatility Normalised Momentum

The MACD-v improves the existing (MACD), by eliminating its shortcomings.
It is a unique type of hybrid “boundless oscillator”.
That opens the doors for several pattern recognition opportunities which would not be definable using the classic MACD.
0RD3AmU.png

A new look to the MACD-V is presented by Alex Spiroglou
https://www.naaim.org/wp-content/uploads/2022/05/MACD-V-Alex-Spiroglou-WEB.pdf


Here's the thinkscript code for the MACD-V:
Ruby: 
# MACD-V Indicator for ThinkOrSwim
# From Alex Spirolglou
# https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4099617


declare lower;

input fast_len = 12;
input slow_len = 26;
input signal_len = 9;
input atr_len = 26;
input overbought_bounds = 150;
input oversold_bounds = -150;
input price = close;

# Indicator calculation
def fast_ema = ExpAverage(price, fast_len);
def slow_ema = ExpAverage(price, slow_len);
def atr = ATR(atr_len);

def macd = ((fast_ema - slow_ema) / atr) * 100;
def signal = ExpAverage(macd, signal_len);
def hist = macd - signal;

# Plotting
plot MACDLine = macd;
plot SignalLine = signal;
plot Histogram = hist;

MACDLine.SetDefaultColor(CreateColor(41, 98, 255)); # Blue
SignalLine.SetDefaultColor(CreateColor(255, 109, 0)); # Orange

Histogram.SetPaintingStrategy(PaintingStrategy.HISTOGRAM);
Histogram.SetLineWeight(3);
Histogram.AssignValueColor(if hist >= 0 then
(if hist > hist[1] then CreateColor(38, 166, 154) else CreateColor(178, 223, 219))
else
(if hist > hist[1] then CreateColor(255, 205, 210) else CreateColor(255, 82, 82)));

# Overbought and Oversold bounds
plot UpperBand = overbought_bounds;
plot LowerBand = oversold_bounds;

UpperBand.SetDefaultColor(CreateColor(255, 255, 255)); # White
LowerBand.SetDefaultColor(CreateColor(255, 255, 255)); # White
UpperBand.SetStyle(Curve.SHORT_DASH);
LowerBand.SetStyle(Curve.SHORT_DASH);

# Filling between the lines and the bounds if overbought or oversold
AddCloud(if macd > overbought_bounds then macd else Double.NaN, overbought_bounds, CreateColor(255, 200, 200), CreateColor(255, 200, 200));
AddCloud(if macd < oversold_bounds then macd else Double.NaN, oversold_bounds, CreateColor(200, 255, 200), CreateColor(200, 255, 200));

# Extending out the boundaries
plot ExtendedUpperBand = overbought_bounds;
plot ExtendedLowerBand = oversold_bounds;

ExtendedUpperBand.SetDefaultColor(CreateColor(200, 200, 200));
ExtendedLowerBand.SetDefaultColor(CreateColor(200, 200, 200));
ExtendedUpperBand.SetStyle(Curve.LONG_DASH);
ExtendedLowerBand.SetStyle(Curve.LONG_DASH);
 
Last edited by a moderator:

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DaysOff said:
MACD-V: Volatility Normalised Momentum

The MACD-v improves the existing (MACD), by eliminating its shortcomings.
It is a unique type of hybrid “boundless oscillator”.
That opens the doors for several pattern recognition opportunities which would not be definable using the classic MACD.
0RD3AmU.png

A new look to the MACD-V is presented by Alex Spiroglou
https://www.naaim.org/wp-content/uploads/2022/05/MACD-V-Alex-Spiroglou-WEB.pdf


Here's the thinkscript code for the MACD-V:
Ruby: 
# MACD-V Indicator for ThinkOrSwim
# From Alex Spirolglou
# https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4099617


declare lower;

input fast_len = 12;
input slow_len = 26;
input signal_len = 9;
input atr_len = 26;
input overbought_bounds = 150;
input oversold_bounds = -150;
input price = close;

# Indicator calculation
def fast_ema = ExpAverage(price, fast_len);
def slow_ema = ExpAverage(price, slow_len);
def atr = ATR(atr_len);

def macd = ((fast_ema - slow_ema) / atr) * 100;
def signal = ExpAverage(macd, signal_len);
def hist = macd - signal;

# Plotting
plot MACDLine = macd;
plot SignalLine = signal;
plot Histogram = hist;

MACDLine.SetDefaultColor(CreateColor(41, 98, 255)); # Blue
SignalLine.SetDefaultColor(CreateColor(255, 109, 0)); # Orange

Histogram.SetPaintingStrategy(PaintingStrategy.HISTOGRAM);
Histogram.SetLineWeight(3);
Histogram.AssignValueColor(if hist >= 0 then
(if hist > hist[1] then CreateColor(38, 166, 154) else CreateColor(178, 223, 219))
else
(if hist > hist[1] then CreateColor(255, 205, 210) else CreateColor(255, 82, 82)));

# Overbought and Oversold bounds
plot UpperBand = overbought_bounds;
plot LowerBand = oversold_bounds;

UpperBand.SetDefaultColor(CreateColor(255, 255, 255)); # White
LowerBand.SetDefaultColor(CreateColor(255, 255, 255)); # White
UpperBand.SetStyle(Curve.SHORT_DASH);
LowerBand.SetStyle(Curve.SHORT_DASH);

# Filling between the lines and the bounds if overbought or oversold
AddCloud(if macd > overbought_bounds then macd else Double.NaN, overbought_bounds, CreateColor(255, 200, 200), CreateColor(255, 200, 200));
AddCloud(if macd < oversold_bounds then macd else Double.NaN, oversold_bounds, CreateColor(200, 255, 200), CreateColor(200, 255, 200));

# Extending out the boundaries
plot ExtendedUpperBand = overbought_bounds;
plot ExtendedLowerBand = oversold_bounds;

ExtendedUpperBand.SetDefaultColor(CreateColor(200, 200, 200));
ExtendedLowerBand.SetDefaultColor(CreateColor(200, 200, 200));
ExtendedUpperBand.SetStyle(Curve.LONG_DASH);
ExtendedLowerBand.SetStyle(Curve.LONG_DASH);
Click to expand...
@DaysOff @BenTen
Fantastic work on coding this indicator. Any idea if a scan could be generated?

Ex. Looking for when slow line and fast line CROSS upward while under the -40 level line. (attachment)

Here is your code updated with the following level lines: "Myline= 40" and "Myline= -40"

# MACD-V Indicator for ThinkOrSwim
# From Alex Spirolglou
# https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4099617


declare lower;

input fast_len = 12;
input slow_len = 26;
input signal_len = 9;
input atr_len = 26;
input overbought_bounds = 150;
input oversold_bounds = -150;
input price = close;

# Indicator calculation
def fast_ema = ExpAverage(price, fast_len);
def slow_ema = ExpAverage(price, slow_len);
def atr = ATR(atr_len);

def macd = ((fast_ema - slow_ema) / atr) * 100;
def signal = ExpAverage(macd, signal_len);
def hist = macd - signal;

# Plotting
plot MACDLine = macd;
plot SignalLine = signal;
plot Histogram = hist;
plot mylineup = 40;
plot mylinedown = -40;


MACDLine.SetDefaultColor(CreateColor(41, 98, 255)); # Blue
SignalLine.SetDefaultColor(CreateColor(255, 109, 0)); # Orange

Histogram.SetPaintingStrategy(PaintingStrategy.HISTOGRAM);
Histogram.SetLineWeight(3);
Histogram.AssignValueColor(if hist >= 0 then
(if hist > hist[1] then CreateColor(38, 166, 154) else CreateColor(178, 223, 219))
else
(if hist > hist[1] then CreateColor(255, 205, 210) else CreateColor(255, 82, 82)));

# Overbought and Oversold bounds
plot UpperBand = overbought_bounds;
plot LowerBand = oversold_bounds;


UpperBand.SetDefaultColor(CreateColor(255, 255, 255)); # White
LowerBand.SetDefaultColor(CreateColor(255, 255, 255)); # White
Mylineup.SetDefaultColor(CreateColor(255, 255, 255)); # White
Mylinedown.SetDefaultColor(CreateColor(255, 255, 255)); # White
UpperBand.SetStyle(Curve.SHORT_DASH);
LowerBand.SetStyle(Curve.SHORT_DASH);

# Filling between the lines and the bounds if overbought or oversold
AddCloud(if macd > overbought_bounds then macd else Double.NaN, overbought_bounds, CreateColor(255, 200, 200), CreateColor(255, 200, 200));
AddCloud(if macd < oversold_bounds then macd else Double.NaN, oversold_bounds, CreateColor(200, 255, 200), CreateColor(200, 255, 200));

# Extending out the boundaries
plot ExtendedUpperBand = overbought_bounds;
plot ExtendedLowerBand = oversold_bounds;

ExtendedUpperBand.SetDefaultColor(CreateColor(200, 200, 200));
ExtendedLowerBand.SetDefaultColor(CreateColor(200, 200, 200));
ExtendedUpperBand.SetStyle(Curve.LONG_DASH);
ExtendedLowerBand.SetStyle(Curve.LONG_DASH);
 

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@Piper2808t, you do know how easy it is to edit code using AI? Give it a try sometime...

Claude Prompt:
"Below is the thinkorswim code for the MACD-V indicator. Revise the code to make it multi-timeframe."

The first code it spit out had some errors, copied and pasted the errors into the Claude prompt, one more error. Copy and pasted the error and the third revision to the code ran fine:

# MACD-V Multi-Timeframe Indicator for ThinkOrSwim
# Modified from Alex Spirolglou's original work
# https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4099617

declare lower;

input fast_len = 12;
input slow_len = 26;
input signal_len = 9;
input atr_len = 26;
input overbought_bounds = 150;
input oversold_bounds = -150;
input price = close;
input timeframe = {default "15 MIN", "1 MIN", "5 MIN", "30 MIN", "1 HOUR", "4 HOURS", "1 DAY", "1 WEEK"}; # Define timeframe choices

# Get price data for the selected timeframe
def aggregatedPrice = close(period = timeframe);

# Indicator calculation using aggregated data
def fast_ema = ExpAverage(aggregatedPrice, fast_len);
def slow_ema = ExpAverage(aggregatedPrice, slow_len);
def atr = ATR(atr_len);
def macd = ((fast_ema - slow_ema) / atr) * 100;
def signal = ExpAverage(macd, signal_len);
def hist = macd - signal;

# Plotting
plot MACDLine = macd;
plot SignalLine = signal;
plot Histogram = hist;
plot mylineup = 40;
plot mylinedown = -40;

# Color settings
MACDLine.SetDefaultColor(CreateColor(41, 98, 255)); # Blue
SignalLine.SetDefaultColor(CreateColor(255, 109, 0)); # Orange
Histogram.SetPaintingStrategy(PaintingStrategy.HISTOGRAM);
Histogram.SetLineWeight(3);
Histogram.AssignValueColor(
if hist >= 0 then
(if hist > hist[1] then CreateColor(38, 166, 154) else CreateColor(178, 223, 219))
else
(if hist > hist[1] then CreateColor(255, 205, 210) else CreateColor(255, 82, 82))
);

# Overbought and Oversold bounds
plot UpperBand = overbought_bounds;
plot LowerBand = oversold_bounds;
UpperBand.SetDefaultColor(CreateColor(255, 255, 255)); # White
LowerBand.SetDefaultColor(CreateColor(255, 255, 255)); # White
mylineup.SetDefaultColor(CreateColor(255, 255, 255)); # White
mylinedown.SetDefaultColor(CreateColor(255, 255, 255)); # White
UpperBand.SetStyle(Curve.SHORT_DASH);
LowerBand.SetStyle(Curve.SHORT_DASH);

# Filling between the lines and the bounds if overbought or oversold
AddCloud(
if macd > overbought_bounds then macd else Double.NaN,
overbought_bounds,
CreateColor(255, 200, 200),
CreateColor(255, 200, 200)
);
AddCloud(
if macd < oversold_bounds then macd else Double.NaN,
oversold_bounds,
CreateColor(200, 255, 200),
CreateColor(200, 255, 200)
);

# Extending out the boundaries
plot ExtendedUpperBand = overbought_bounds;
plot ExtendedLowerBand = oversold_bounds;
ExtendedUpperBand.SetDefaultColor(CreateColor(200, 200, 200));
ExtendedLowerBand.SetDefaultColor(CreateColor(200, 200, 200));
ExtendedUpperBand.SetStyle(Curve.LONG_DASH);
ExtendedLowerBand.SetStyle(Curve.LONG_DASH);
 
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