MACDV

The MACDV indicator is a momentum and volume-based tool that applies the Moving Average Convergence Divergence (MACD) framework to stochastic accumulation and distribution volume formulas to provide a normalized view of market pressure. By transforming various volume metrics into a familiar MACD-style interface, the indicator helps traders identify overbought/oversold conditions and momentum shifts through a standardized scale of -100 to 100.

Usage

The MACDV can be used to identify trend direction, potential reversals, and volume-backed momentum. The output oscillates between 100 (extreme overbought) and -100 (extreme oversold).

• Bullish Signals: Indicated by rising values, crossovers where the Fast line moves above the Slow line, or the histogram turning bright green above the zero line.
• Bearish Signals: Indicated by falling values, crossunders where the Fast line moves below the Slow line, or the histogram turning bright red below the zero line.
• Convergence/Divergence: Discrepancies between price action and the MACDV peaks/troughs can signal an upcoming change in market direction or a loss of volume-supported momentum.
• Visual Cues: Tiny dots and circles at the top or bottom of the pane highlight specific bullish/bearish conditions and line crossovers.

Details

The script integrates multiple volume methodologies by normalizing their outputs. Because Accumulation/Distribution, Stochastic, and standard MACD operate on different scales, this tool uses a normalization function to map volume data (such as PVT or OBV) into a fixed -100 to 100 range.

The tool supports six different volume sources:

1. AD: Accumulation Distribution
2. PVT: Price Volume Trend
3. PVI: Positive Volume Index
4. OBV: On Balance Volume
5. MFI: Money Flow Index
6. ALL: An average of all five metrics

Settings

Settings

• K length: The period used for the stochastic calculation of the selected volume metric.
• D smoothing: The period for the weighted moving average smoothing applied to the stochastic volume.
• MACDV fast: The length for the fast MACD line.
• MACDV slow: The length for the slow MACD line.
• MACDV signal: The period used to calculate the histogram (signal line) based on the MACD lines.
• Stretch: A multiplier used to expand the visual output of the MACDV for better visibility of fluctuations.
• Total: The period for a moving average that averages the fast line, slow line, and histogram into a single "Total" line.
• Volume Type: Dropdown menu to select the underlying volume source (AD, PVT, PVI, OBV, MFI, or an average of all).

FAQ

How do I interpret the -100 and 100 levels?

Values reaching 100 suggest the volume-based momentum is at an extreme overbought state, while -100 suggests an extreme oversold state, often preceding a retracement or consolidation.

What is the "Stretch" setting for?

Since the math is normalized, the visual waves can sometimes appear flat. Increasing the Stretch value acts as a multiplier to make the movements more pronounced in the indicator pane.

How can I access MACDV?

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