MACD of Aggregated Buy/Sell Pressure

The MACD of Aggregated Buy/Sell Pressure indicator provides a comprehensive view of market momentum by calculating buying and selling pressure across multiple exchanges and market types. By normalizing volume data into a standard unit (e.g., 1 BTC), it offers a more accurate representation of global capital flow compared to single-symbol volume indicators.

Usage

This tool can be used to identify trend dominance and potential reversals through price-volume divergences. A positive oscillator reading indicates a bullish dominant trend, while a negative reading suggests bearish dominance.

• Aggregated Analysis: By default, the script aggregates data from major exchanges. Users can select between "Spot", "Futures", "Perp", and combined market types to see where the pressure is originating.
• Single Symbol Mode: Disable the "Use Aggregated Data" option to apply the MACD logic to the specific symbol currently on the chart. This allows the indicator to be used for any asset beyond the pre-configured BTC tickers.
• Divergence Spotting: Look for discrepancies between price action and the oscillator peaks/troughs to identify weakening trends or upcoming market tops and bottoms.

Details

The script adapts the traditional Moving Average Convergence Divergence (MACD) framework but replaces price data with buying and selling pressure averages. It incorporates an aggregation logic that fetches volume from up to 16 spot sources and 12 futures/derivative sources.

To ensure data integrity, the script performs normalization. For example, if an exchange reports volume in USD or contract units rather than the base coin, the script adjusts the values to report in terms of 1 unit of the underlying asset. The histogram represents the difference between the raw volume pressure convergence/divergence and the signal line (normalized averages), serving as a secondary confirmation of momentum shifts.

Settings

• Use Aggregated Data: Toggles between multi-exchange volume aggregation and the current chart's symbol volume.
• Market Type Aggregation: Selects the specific market category to aggregate (Spot, Futures, Perpetual, etc.).
• Base for FastMA Periods: Sets the lookback period for the signal line and fast-acting pressure calculations.
• Buy to Sell Conv/Div Lookback: Sets the lookback period for the primary MACD calculation.
• Symbol Configuration: A series of inputs allowing users to toggle specific exchanges on/off, define the ticker, and set the normalization base (Coin, USD, or Other).

FAQ

How do I use this for coins other than BTC?

To use this indicator for other assets, uncheck the "Use Aggregated Data" box in the settings. This will force the indicator to calculate buy/sell pressure based solely on the symbol currently active on your chart.

What does the histogram represent?

The histogram shows the difference between the raw volume pressure readings and the signal line. Increasing histogram bars indicate accelerating momentum, while decreasing bars suggest a potential slowdown in the current pressure direction.

How do I access MACD of Aggregated Buy/Sell Pressure?

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