MACD DoubleCross

The MACD DoubleCross indicator tracks and counts consecutive MACD line crossovers to identify potential high-probability entry and exit signals based on momentum cycles. By analyzing the sequence of crosses, the tool distinguishes between initial trend shifts and secondary "stronger" signals that often provide better confluence for trading systems.

Usage

The tool is primarily used to identify trend exhaustion and subsequent momentum reversals through a "double cross" logic. Users can observe labels indicating the count of consecutive bullish or bearish crosses.

• Strong Entries: Typically triggered when a secondary MACD cross occurs in the same direction, suggesting building momentum.
• Qualified Entries: Used for more conservative signals where specific conditions across multiple cross cycles are met.
• Exits: Signals a potential trend reversal or the cancellation of the current momentum bias when a cross in the opposite direction occurs after a count has been established.
• Visual Interpretation: The indicator includes a standard MACD histogram and lines, which can be toggled to simplify the view to just the signal labels.

Details

The script implements a unique logic for counting crosses by defining a "closeness" threshold. This prevents noise or minor fluctuations around the signal line from falsely resetting the cross count. It calculates a dynamic channel around the signal line; if a cross occurs within this channel, the script can be configured to treat it as a continuation rather than a reset. Additionally, the indicator features an "Auto-adjust" toggle for higher timeframes (1D or longer) to optimize signal sensitivity for swing trading.

Settings

MACD Parameters

• MACD Fast MA Length: Sets the period for the fast Exponential Moving Average.
• MACD Slow MA Length: Sets the period for the slow Exponential Moving Average.
• MACD Source: Determines the price source used for calculations (e.g., close, open).
• MACD Signal Smoothing: Sets the smoothing period for the MACD Signal line.

Display Options

• Show MACD Histogram/Lines: Toggles the visibility of the core MACD components.
• Show MACD Strong/Qualified Entries: Enables or disables specific entry signal labels.
• Show MACD Exits: Toggles the display of exit signals.
• Display MACD Cross Count: Shows numerical labels (1, 2, 3+) above or below crosses to track momentum cycles.

Advanced

• Auto-adjust for High Timeframes: Automatically modifies signal logic when using daily, weekly, or monthly intervals.
• Advanced: MACD Closeness % Line: Adjusts the sensitivity for what the script considers a "close enough" cross to avoid noise-induced resets.

FAQ

How do I use the cross count labels?

The labels track how many times the MACD has crossed the signal line in a specific direction. A "2" often signifies a more established trend shift than a "1".

What are "Strong Entries"?

Strong entries are signals derived from the logic that a second cross in a specific direction, following an initial cycle, carries higher momentum significance.

How can I access MACD DoubleCross?

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