Ultimate MACD Indicator for ThinkorSwim

[pyeatienza]

@BenTen . How would I set up the scanner when the MACD line turns green for the Ultimate MACD by Horserider 8/30/2019 code:

 

[BenTen]

@pyeatienza Try to follow the tutorial here https://usethinkscript.com/threads/ultimate-macd-indicator-for-thinkorswim.558/post-23204

 

[txp0601]

still can't understand how to use it. it has too many colors and lines..

 

[horserider]

@txp0601 Go back to post # 1. There is a chart section of just the indicator with some notes on possible use. See if that helps. If not ask a more detailed question of what you do not understand.

 

[AshtheMan]

Hi horserider i just started using your macd indicator here but I am not sure how you are getting the buy/sell signal arrows on your chart?

 

[MerryDay]

@AshtheMan The indicator being discussed in this thread is displayed in the lower studies on post#1.
Arrows seen in the upper study are not part of this indicator and are not available.

 

[JamesB]

Honestly macd is a great, so are bollingers, but its even greater to understand what bolingers are actually doing, they are taking the standard deviation, meaning the average extreme moves of the last (usually can be changed) 21 bars, look into what standard deviations are, all indicators do is show you a different way that price is moving, like it simplifies the idea that price is going up or down, the most simple form of this that i have come across is THE STRAT, this will allow you to visualize price action, trading without understand what the indicators are actually doing is only seeing the result, trading "indicators" are not the way to trade, but they do help you visualise what price is doing, one may argue that if everyone is looking at the same indicator than it becomes a self-fulfilling prophecy, meaning if everyone is looking at macd to across over to green than to buy than it works, or if everyone is looking at Fibonacci than it might work, i once saw a post by this creator of indicators name mobious, and he stated that more than three indicators is too much. read this

Where do you find a script for trend pivots and volume wave?

 

[MerryDay]

@JamesB
https://usethinkscript.com/threads/mobius-volume-wave-trend-pivots-and-rsi-laguerre.8035/

 

[cozcoz]

@horserider Hello,

I'd like to ask if you could make this indicator usable on tradingview, other people have made their own and their MACDBB doesn't have the squeeze factor on the bollinger bands. So if you see this, I'd appreciate it if you can make this happen... my birthday is on jan 24th lol

 

[MerryDay]

@cozcoz We are a forum of thinkscripters. You would probably be better off asking on TradingView

 

[HEC]

@rovo Sorry for delayed rsponse.

AVG line is white line labeled SMA in your photo in post 54
midline is safe buy = orange line

Stages would be;
1. Break off outer band if following an outer band
2. Color change of MACD line
3. Cross AVG line
4. Cross midline

Main signal is cross of MACD and midline.

I use this indicator with fast , slow , macd values cut in half along with others to day trade and it works quite well . Thanks

 

[yellowlogic]

would anyone be willing to help me create a strategy based on the Ultimate MACD indicator? I would like the strategy to go long when the indicator changes from red to green and short when changes from green to red. any help would be appreciated.

 

[MerryDay]

Trending Oscillators make poor strategies in isolation.

1. Trending Indicators work great when a stock is trending but losses multiply in chop and downtrends.
2. Your buy/sell conditions do not reference the power of oscillators which is the ability to find the beginning of trends by using crosses of zero, or average, or oversold/overbought. Additionally, this particular study have Bollinger Bands which are also left out.

This has an overall 70% loss rate.

# Ultimate MACD by Horserider 8/30/2019
# Standard version
# Also have short and long term versions. Can accomplish all three by just adjusting inputs to fit your trading style.
# Standard MACD 12,26,9 BB length 20.
# Short term MACD 6, 13, 6 BB length 5.
# Long term MACD 48, 104, 36 BBlength 20.
# Added zero line on suggestion of Ahmar824 1/12/2019.

input fastLength = 12;
input slowLength = 26;
input MACDLength = 9;
input AverageTypeMACD = {SMA, default EMA, HMA, Wilders};

input price = close;
input displace = 0;

def MACD_Data = MACD(fastLength = fastLength, slowLength = slowLength, MACDLength = MACDLength);
def MACD_Line = MACD_Data;

def state = if MACD_Line > MACD_Line[1] then  1 else
            if MACD_Line < MACD_Line[1] then -1 else 0 ;

##Long
AddOrder(OrderType.BUY_TO_OPEN, condition = (STATE crosses above 0));
AddOrder(OrderType.SELL_TO_CLOSE, condition = (STATE crosses below 0));

Extended P&L summary can be found here:
https://usethinkscript.com/threads/...acktesting-data-utility-for-thinkorswim.1624/

 

[timing]

I am asking the catalog of studies, not the place where they will be shown in chart. For example, RSI is a momenton indicator, MA, EMA, and MACD is trend indicator, etc.
Since horserider emphasied many time in this forum, do not use (recommend) studies or indicators from the same catalog. So he might has a complete list of catalog of studies (indicator), or maybe some optimazation combination of indicators from different catalog.

 

[MerryDay]

I am asking the catalog of studies, not the place where they will be shown in chart. For example, RSI is a momenton indicator, MA, EMA, and MACD is trend indicator, etc.
Since horserider emphasied many time in this forum, do not use (recommend) studies or indicators from the same catalog. So he might has a complete list of catalog of studies (indicator), or maybe some optimazation combination of indicators from different catalog.

https://usethinkscript.com/threads/...nt-to-successful-trading-in-thinkorswim.6114/

 

[candlestix]

Hi @horserider is there a scanner that indicates when the MACD Line turns from RED to GREEN or vice versa on your indicator?

 

[MintDragon]

Hi @horserider is there a scanner that indicates when the MACD Line turns from RED to GREEN or vice versa on your indicator?

see post #34

 

[bora21]

Hello @horserider/@BenTen,

Thank you for the script. I've been checking it out and it's amazing. I'm really new to all this and had a question.

What's the reason sometimes the MACD is a different color from the candles. So price if moving down but the MACD color is green?

It doesn't happen all the time but I have seen situations where the MACD is a different color from the price action.

Thanks in advance.

 

[MerryDay]

Hello @horserider/@BenTen,

Thank you for the script. I've been checking it out and it's amazing. I'm really new to all this and had a question.

What's the reason sometimes the MACD is a different color from the candles. So price if moving down but the MACD color is green?

It doesn't happen all the time but I have seen situations where the MACD is a different color from the price action.

Thanks in advance.

Price action is looking at a single candle. Whereas the MACD is looking at a group of candles.

The Moving average convergence/divergence (MACD) is a trend-following momentum indicator that shows the relationship between two exponential moving averages (EMAs).
It is looking at a bigger picture than just one bar.

The OP of this thread is coloring the MACD thread green when the momentum is increasing.

It is beyond the scope of this thread to explain the intricacies of the MACD.
It is one of the most used oscillators on the forum. It definitely is worth researching and understanding the MACD before using.

Also read about the pros and cons of oscillators:
https://usethinkscript.com/threads/how-to-read-an-oscillator-in-thinkorswim.11497/

 

[METAL]

Here is a MACD indicator for ThinkorSwim. It uses a color coded MACD line to show changes. There is a moving average of the MACD signal line. And MACD bands to show volatility. The signal would be the cross of MACD (Green/RED) and signal line (White). A photo is also below to give tips on trading the indicator. The lengths can be adjusted to suit your trading. (Since the below photo zero line was added)

Original post is below with updated standard code.

Any questions just ask.

Here is the code. Code updated to current version:

#
# Ultimate MACD by Horserider 8/30/2019
# Standard version
# Also have short and long term versions. Can accomplish all three by just adjusting inputs to fit your trading style.
# Standard MACD 12,26,9 BB length 20.
# Short term MACD 6, 13, 6 BB length 5.
# Long term MACD 48, 104, 36 BB length 20.
# Added zero line on suggestion of Ahmar824 1/12/2019.

declare lower;
input fastLength = 12;
input slowLength = 26;
input MACDLength = 9;
input AverageTypeMACD = {SMA, default EMA, Wilders};

input price = close;
input displace = 0;

def MACD_Data = MACD(fastLength = fastLength, slowLength = slowLength, MACDLength = MACDLength);
plot MACD_Line = MACD_Data;

MACD_Line.DefineColor("Up", Color.GREEN);
MACD_Line.DefineColor("Down", Color.RED);
MACD_Line.DefineColor("Even", Color.WHITE);
MACD_Line.AssignValueColor(if MACD_Line > MACD_Line[1] then MACD_Line.Color("Up") else (if MACD_Line == MACD_Line[1] then MACD_Line.Color("Even") else MACD_Line.Color("Down")));
MACD_Line.SetLineWeight(3);

plot zero = 0;
zero.setDefaultColor(color.LIGHT_ORANGE);
zero.setLineWeight (1) ;

def Value;
plot Avg;
switch (AverageTypeMACD) {
case SMA:
    Value = Average(price, fastLength) - Average(price, slowLength);
    Avg = Average(Value, MACDLength);
case EMA:
    Value = ExpAverage(price, fastLength) - ExpAverage(price, slowLength);
    Avg = ExpAverage(Value, MACDLength);

case Wilders:
    Value = WildersAverage(price, fastLength) - WildersAverage(price, slowLength);
    Avg = ExpAverage(Value, MACDLength);
}
Avg.SetDefaultColor(Color.WHITE);


#plot BB;
#Bollinger BandsSMA,EMA
input AverageTypeBB = {default SMA, EMA, HMA};
input displaceBB = 0;
input lengthBB = 20;
input Num_Dev_Dn = -2.0;
input Num_Dev_up = 2.0;

plot upperBand;
plot lowerBand;
def midline;

switch (AverageTypeBB) {
case SMA:
    upperBand = reference BollingerBands(MACD_Line, displaceBB, lengthBB, Num_Dev_Dn, Num_Dev_up).UpperBand;
    lowerBand = reference BollingerBands(MACD_Line, displaceBB, lengthBB, Num_Dev_Dn, Num_Dev_up).LowerBand;
    midline   = reference BollingerBands(MACD_Line, displaceBB, lengthBB, Num_Dev_Dn, Num_Dev_up).Midline;
case EMA:
    upperBand = reference BollingerBands(MACD_Line, displaceBB, lengthBB, Num_Dev_Dn, Num_Dev_up, averageType = AverageType.EXPONENTIAL).UpperBand;
    lowerBand = reference BollingerBands(MACD_Line, displaceBB, lengthBB, Num_Dev_Dn, Num_Dev_up, averageType = AverageType.EXPONENTIAL).LowerBand;
    midline   = reference BollingerBands(MACD_Line, displaceBB, lengthBB, Num_Dev_Dn, Num_Dev_up, averageType = AverageType.EXPONENTIAL).Midline;
case HMA:
    upperBand = reference BollingerBands(MACD_Line, displaceBB, lengthBB, Num_Dev_Dn, Num_Dev_up, averageType = AverageType.EXPONENTIAL).UpperBand;
    lowerBand = reference BollingerBands(MACD_Line, displaceBB, lengthBB, Num_Dev_Dn, Num_Dev_up, averageType = AverageType.EXPONENTIAL).LowerBand;
    midline   = reference BollingerBands(MACD_Line, displaceBB, lengthBB, Num_Dev_Dn, Num_Dev_up, averageType = AverageType.EXPONENTIAL).Midline;
}

upperBand.SetDefaultColor(Color.GRAY);
upperBand.DefineColor("Up", Color.CYAN);
upperBand.DefineColor("Down", Color.PINK);
upperBand.DefineColor("Even", Color.GRAY);
upperBand.AssignValueColor(if upperBand > upperBand[1] and lowerBand < lowerBand[1] then upperBand.Color("Up") else (if upperBand < upperBand[1] and lowerBand > lowerBand[1] then upperBand.Color("Down") else upperBand.Color("Even")));
upperBand.SetLineWeight(2);

lowerBand.SetDefaultColor(Color.GRAY);
lowerBand.DefineColor("Up", Color.CYAN);
lowerBand.DefineColor("Down", Color.PINK);
lowerBand.DefineColor("Even", Color.GRAY);
lowerBand.AssignValueColor(if upperBand > upperBand[1] and lowerBand < lowerBand[1] then upperBand.Color("Up") else (if upperBand < upperBand[1] and lowerBand > lowerBand[1] then upperBand.Color("Down") else upperBand.Color("Even")));

plot midline1 = midline;

Update to show versatility of the study to fit different trading styles. Will include shares to each variation but same can be accomplished by changing the inputs. Added a zero line.

Standard MACD 12,26,9 BB length 20. https://tos.mx/X1IBznK
Short term MACD 6, 13, 6 BB length 5. https://tos.mx/tpa1Ek8
Long term MACD 48, 104, 36 BB length 20. https://tos.mx/iUs5wqK

What do you consider Short, Standard and Long term?
1m for short? 15m standard? daily for long?