MACD Donchian + EMA & MACD + ADX

The MACD Donchian + EMA & MACD + ADX indicator provides a comprehensive multi-indicator signal suite that combines trend filtering with momentum oscillators to identify high-probability entry points.

Usage

The indicator generates signals based on several logic modules that can be enabled or disabled depending on your strategy.

• MACD + EMA Strategy: Generates buy signals when the price is above the 200 EMA and the MACD line crosses above the signal line below the zero level. Sell signals occur when the price is below the 200 EMA and the MACD line crosses below the signal line above the zero level.
• Donchian Channels: Used as a confirmation tool. It identifies breakouts relative to the 200 EMA trend. A buy is signaled when the price is above the EMA and breaks above the upper channel.
• ADX + MACD Filtering: This logic looks for strong trends. A bullish signal is generated if the ADX is above 25 (indicating trend strength) and a bullish MACD crossover occurs.
• Ichimoku Cloud: Can be enabled to provide further trend and support/resistance context, triggering signals on Tenkan-sen/Kijun-sen crosses relative to the cloud and 200 EMA.

Details

The script integrates four major technical analysis concepts: trend following (200 EMA), momentum (MACD), volatility/range (Donchian Channels), and trend strength (ADX). By combining these, it filters out "fake" momentum signals that occur against the primary trend. For example, the MACD filter ensures that bullish crosses are only taken in an established uptrend, while the ADX filter ensures signals are only acted upon when there is sufficient market participation.

Settings

General Settings

• Display EMA 200: Toggles the visibility of the primary trend filter line.
• Display strategy name with signals: Adds text labels to the shapes on the chart for easier identification.
• Display indicators: Shows the underlying Donchian and Ichimoku lines on the overlay.

MACD Inputs

• Enable MACD?: Activates the MACD-based signal logic.
• Fast/Slow Length: Adjusts the periods for the MACD EMA calculation.
• Signal Smoothing: Adjusts the period for the signal line.

ADX Inputs

• ADX Smoothing: Controls the smoothness of the Trend Strength line.
• DI Length: Sets the period for the Directional Index components.

FAQ

How do I interpret the different signal shapes? The indicator uses different colors and labels. Triangle shapes typically represent MACD or Donchian breakouts, while label boxes represent the combined ADX + MACD high-strength signals.

Can I use this for scalping or swing trading? The tool is versatile; however, the author suggests it performs effectively during the London session and can be further filtered using secondary indicators like Chandelier Exit.

How do I access MACD Donchian + EMA & MACD + ADX? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.