Multi Timeframe Moving Average Convergence Divergence {DCAquant}

The Multi Timeframe Moving Average Convergence Divergence {DCAquant} indicator aggregates MACD and Signal Line dynamics across six different timeframes to provide a consolidated view of market momentum and trend direction. This tool helps traders identify high-confluence entries by filtering out noise through multi-timeframe synchronization and optional moving average smoothing.

Usage

The Usage section focuses on interpreting the aggregated data to determine market bias. Traders can use this script to identify whether multiple time horizons are aligned in a bullish or bearish state.

• Trend Identification: The indicator plots an aggregated MACD and Signal Line. When the aggregated MACD is above the Signal Line, the background turns green, suggesting a bullish bias. Conversely, a red background indicates a bearish bias.
• Neutral Zone: A user-defined threshold allows the script to identify "Neutral" states where the difference between MACD and Signal Line is negligible, helping traders avoid low-probability choppy markets.
• Smoothing Adjustments: By enabling MA smoothing, users can apply various moving average types (like HMA or EMA) to the aggregated values to produce a cleaner, less reactive histogram and crossover signal.
• Dashboard Monitoring: The on-screen table provides an immediate summary of the current market state (Long, Short, or Neutral) accompanied by graphical icons for quick reference.

Details

The script functions by requesting MACD data from six user-specified timeframes via request.security. Once the individual MACD and Signal Line values are retrieved, the indicator calculates the mean for both.

A unique feature of this implementation is the application of a secondary smoothing layer to these averages. By default, it uses a Hull Moving Average (HMA) to process the aggregated MACD data, which reduces lag while maintaining a smooth output. The "Neutral Zone" calculation utilizes the absolute difference between the final MACD and Signal Line; if this difference is below the neutralThresh, the market is categorized as Neutral.

Settings

Table

• Table Position: Determines where the summary dashboard is displayed on the chart (e.g., Bottom Right, Top Left).
• Table Size: Adjusts the scale of the dashboard text and cells (Tiny, Small, Normal, Large).

Plots

• Show Background Color: Toggles the color-coded background based on the current trading state.
• Show Histogram?: Enables or disables the visibility of the MACD histogram.
• Show Crossover Lines?: Toggles the visibility of the aggregated MACD and Signal lines.

MACD

• Fast Length: The period for the shorter-term EMA used in the MACD calculation.
• Slow Length: The period for the longer-term EMA used in the MACD calculation.
• Signal Smoothing: The smoothing period for the Signal Line.
• Source: The price data point used for calculations (default is Close).
• Neutral Zone Threshold: The minimum distance required between MACD and Signal Line to exit a Neutral state.

MTF MACD

• MA Type: Selects the moving average method used for final smoothing (SMA, EMA, SMMA, WMA, VWMA, HMA).
• Smoothing for MTF MACD: The length applied to the chosen MA type for the aggregated lines.
• Use MA Smoothing for MTF MACD?: Toggles whether the aggregated values should be smoothed or displayed raw.

MTF

• Timeframe 1–6: Sets the specific timeframes used for data collection (ranging from 1 minute up to 1 month).

FAQ

How do I interpret the "Neutral" state?
The Neutral state occurs when the MACD and Signal Line are too close to each other, indicating a lack of clear momentum. This is often used as a filter to avoid trading in sideways markets.

Can I change the timeframes used for the calculation?
Yes, you can select up to six different timeframes in the "MTF" section of the settings menu to match your specific trading strategy.

How can I access this indicator?
You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.