Parabolic SAR MARSI, Adaptive MACD

The Parabolic SAR MARSI, Adaptive MACD indicator provides a trend-following framework that integrates the momentum of the RSI and the convergence-divergence logic of the MACD into a customized Parabolic SAR signal generator.

Usage

The tool can be used to identify trend reversals and momentum shifts by observing the interaction between the MACD line, its signal line, and the overlaid Parabolic SAR (PSAR) dots.

• Trend Identification: When the PSAR dots are colored green and appear below the signal line, an uptrend is suggested. Conversely, red dots appearing above the signal line suggest a downtrend.
• Momentum Histogram: The histogram in this indicator represents the MACD line itself rather than the standard MACD-Signal difference. The color gradients (Grow/Fall) indicate whether the adaptive momentum is accelerating or decelerating above or below the zero line.
• Signal Crosses: Standard MACD/Signal line crossovers can be used for entry/exit timing, while the PSAR dots provide a trailing trend filter to manage trades.
• Confluence: Strong bullish conditions occur when the MACD is above zero, above its signal line, and the PSAR initiates an uptrend signal.

Details

This script constructs its signals through a multi-step calculation process:

1. MARSI (Moving Average RSI): It utilizes a specialized moving average that adjusts its sensitivity based on RSI levels. High RSI values make the average more reactive.
2. Adaptive MACD: The script calculates MACD values using MARSI applied to High and Low prices. It then determines a midpoint and applies a secondary MARSI calculation to arrive at the final MACD line.
3. Injected PSAR: The resulting adaptive values are fed into a Parabolic SAR algorithm. Unlike standard PSAR which tracks price, this version tracks the volatility and momentum of the MARSI-based MACD.

Settings

MARSI MACD

• RSI Source: The price data source used for RSI calculations.
• Fast RSI Period: The lookback period for the fast RSI component.
• Fast MARSI Speed: Adjusts how aggressively the fast average reacts to RSI changes.
• Slow RSI Period: The lookback period for the slow RSI component.
• Slow MARSI Speed: Adjusts the reactivity of the slow average.

Parabolic SAR

• Start: The initial acceleration factor for the PSAR calculation.
• Acceleration: The increment value for the acceleration factor as the trend persists.
• Maximum: The upper limit for the acceleration factor.

MACD

• Signal MA Type: Choose from various smoothing methods (EMA, SMA, DEMA, TEMA, etc.) for the signal line.
• Signal Period: The lookback period for the signal line smoothing.

FAQ

How do I interpret the histogram?

Unlike a classic MACD histogram, this histogram represents the value of the MACD line itself. Growing bars indicate increasing momentum in the direction of the current trend, while falling bars indicate a potential weakening.

What makes this MACD "Adaptive"?

The indicator uses MARSI, which flexes its smoothing based on RSI sensitivities. This allows the indicator to stay smooth during low-volatility periods while reacting faster during high-momentum RSI moves.

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.