MACDAS with Plots and Alerts

The MACDAS indicator provides earlier trend signals compared to the traditional MACD by applying a secondary signal line calculation to the MACD histogram.

Usage

The MACDAS tool is used to identify momentum shifts and trend reversals earlier than standard MACD crossovers. Traders typically look for crossovers between the MACDAS histogram and its signal line:

• Long Signal: Occurs when the MACDAS line crosses above its signal line, often interpreted as an early bullish momentum shift.
• Short Signal: Occurs when the MACDAS line crosses below its signal line, indicating an early bearish momentum shift.

The script includes visual aids such as filled areas between the lines and plot shapes (triangles) to highlight these crossover points.

Details

The MACDAS (Thomas Aspray's MACD) is derived from the difference between the standard MACD line and its signal line (the MACD Histogram). While the standard MACD uses an SMA for its signal line, this implementation utilizes Exponential Moving Averages (EMA) for both the MACD and the MACDAS signal lines to reduce lag. By calculating a 9-period EMA of the MACD Histogram itself, the indicator generates a "signal line for the histogram," allowing for much faster reaction times to price changes.

Settings

• Fast Period: The period used for the shorter EMA in the initial MACD calculation.
• Slow Period: The period used for the longer EMA in the initial MACD calculation.
• Signal Period: The period used for the signal line of both the MACD and the resulting MACDAS.

FAQ

How do I use the MACDAS signals?

Signals are generated when the MACDAS line crosses its signal line. A green triangle indicates a bullish crossover, while a red triangle indicates a bearish crossover.

How does this differ from standard MACD?

Unlike the standard MACD which tracks the relationship between two price averages, MACDAS tracks the momentum of the MACD histogram itself, providing lead time on potential trend changes.

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.