K-MACD : a MACD with some more muscles

The K-MACD indicator provides a multi-layered momentum analysis tool that expands on the traditional MACD concept by integrating four distinct moving averages and relative calculation modes. It is designed to identify short, medium, and long-term price movements while highlighting volatility contraction and trend transitions through a visually clean interface.

Usage

The K-MACD can be used to identify market regime shifts and momentum reversals. The indicator consists of several key visual components:

• Price Proxy & Signal Line: These represent the most immediate price action. Crossovers between the Price Proxy (thick line) and its Signal Line (thinner line) can signal short-term momentum shifts similar to a standard MACD.
• Momentum Bars (MoBars): These candle-like bars represent the distance between the Medium-term Fast and Slow MAs. When these bars are above the zero line, the medium-term trend is bullish; below the zero line, it is bearish.
• Baseline (Zero Line): This represents a long-term filter (e.g., a 200-period SMA). If the other elements are above this line, the market is generally considered in a Bullish mode.
• 52-Week High/Low Markers: Small green or red circles appear on the zero line when the price hits a new 52-week high or low (available on 1D timeframes and above).

Details

The K-MACD improves upon the classic MACD by offering a "Relative" calculation mode. Unlike the "Classic" mode, which uses absolute price differences, the Relative mode calculates distances as a percentage of the Baseline MA. This allow for a more accurate comparison of momentum across different time periods or different financial instruments with varying price scales.

The indicator also includes the "RSS_WMA" (LazyLine) moving average type, which provides a smoother output for the price proxy, helping to filter out market noise while maintaining responsiveness.

Settings

Price Proxy & Signal Lines

• Calc Option: Choose between 'Relative' (percentage-based) or 'Classic' (absolute value) calculations.
• Proxy Length/Type: Defines the length and moving average type (SMA, EMA, WMA, HMA, or RSS_WMA) for the fast Price Proxy.
• Proxy Signal Delay/Type: Sets the smoothing parameters for the signal line applied to the Price Proxy.

Fast & Slow Lines

• Fast/Slow MA Source: Determines the input source for the momentum bar calculations.
• Fast/Slow Length/Type: Defines the lookback periods and MA types used to generate the medium-term momentum bars.
• Slow Delay: Adds a specific offset or additional smoothing to the slow moving average calculation.

Filter MA / Baseline

• Filter Length/Type: Sets the parameters for the zero-line baseline, typically used to define the long-term trend (e.g., 200 SMA).

FAQ

How do I interpret the Momentum Bars? The bars represent the relationship between the medium-term fast and slow moving averages. Green bars expanding above the zero line indicate strengthening bullish momentum, while red bars expanding below indicate strengthening bearish momentum.

What is the benefit of the Relative calculation mode? The Relative mode normalizes the indicator's output as a percentage of the long-term baseline, making it easier to compare current momentum levels with historical peaks or to compare different assets regardless of their price.

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