# MACD-V

MACD-V is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®.

Volatility-normalized MACD: the 12/26 EMA spread divided by a 26-period ATR and scaled to percent, with a 9-period signal line, histogram and fixed lifecycle levels at +/-50 and +/-150. Crosses, zone changes and overextension entries are all alertable. For momentum traders who want one set of reference levels that reads the same on any symbol or timeframe.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Mar 17, 2026.
- Access: free.
- Concepts: [MACD-V](https://www.luxalgo.com/library/concept/macd-v/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=q9f9wy5xuczzbqrju89e5s82
- Page: https://www.luxalgo.com/library/indicator/macd-v/

**MACD-V** restates MACD momentum in volatility units: the 12/26 EMA spread is measured against a 26-period average true range and scaled to a percentage, then given the familiar 9-period signal line plus histogram, a faithful build of [Alex Spiroglou's MACD-V](https://www.luxalgo.com/library/concept/macd-v/). Readings are denominated in the symbol's own volatility, so the pane carries a fixed map: dashed borders at ±50 frame the neutral zone and ±150 the overextension zones, on any symbol or timeframe.

## How to Trade the MACD-V?

- **Signal cross outside the neutral zone**: crosses beyond ±50 are the higher-conviction events; a dedicated alert skips the noise-prone crosses inside the band.
- **Zero-line cross**: a positive reading puts the fast EMA back on top of the slow one: the momentum side flipped.
- **Overextension entry**: beyond ±150 a move has outrun its own typical bar: exhaustion risk, not an automatic fade; the unwind back through the border is its own event.
- **Histogram shading**: bright columns mark a still-widening gap to the signal line, faded columns a gap already narrowing.

The universal scale also makes readings comparable across a watchlist: the same thresholds everywhere, no per-symbol recalibration.

## MACD-V Settings

- **Source** (default close).
- **Fast Length** (default 12) and **Slow Length** (default 26): the classic MACD engine.
- **ATR Length** (default 26): the Average True Range the spread is divided by; the published default matches the slow average.
- **Signal Length** (default 9): EMA of MACD-V forming the signal line.
- **Overextension + / Overextension -** (defaults 150 / -150) and **Neutral Zone + / Neutral Zone -** (defaults 50 / -50): the fixed lifecycle borders.
- **Style toggles**: Show Histogram (on) and Gradient Fill (on).

## Frequently Asked Questions

### What does the ATR division change versus classic MACD?
The classic [MACD](https://www.luxalgo.com/library/indicator/macd/) is denominated in price, so its numbers travel poorly between symbols and eras. Dividing the same EMA spread by ATR makes the reading a pure number, which is what lets fixed levels like ±150 exist at all. Signal line, histogram and zero-line logic carry over unchanged.

### Why do readings shrink when volatility spikes?
The denominator grows. Whenever true range widens more quickly than the EMA spread, the quotient shrinks, deliberately: momentum is scored against the prevailing volatility backdrop, not as absolute speed.

### Should the ±50 and ±150 borders be retuned per market?
The normalization exists so they should not need to be. The published conventions were framed around the default 12/26/26/9 lengths, so if the levels look off, check the lengths before moving the borders; the further the borders drift from convention, the less the standard map means.

## Related indicators

- [Adaptive MACD](https://www.luxalgo.com/library/indicator/adaptive-macd/) (MACD): markdown at https://www.luxalgo.com/library/indicator/adaptive-macd.md
- [MACD Based Price Forecasting](https://www.luxalgo.com/library/indicator/macd-based-price-forecasting/) (MACD): markdown at https://www.luxalgo.com/library/indicator/macd-based-price-forecasting.md
- [Volume-weighted MACD](https://www.luxalgo.com/library/indicator/volume-weighted-macd/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/volume-weighted-macd.md
- [Impulse MACD](https://www.luxalgo.com/library/indicator/impulse-macd/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/impulse-macd.md
- [Schaff Trend Cycle](https://www.luxalgo.com/library/indicator/schaff-trend-cycle/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/schaff-trend-cycle.md
- [Zero-lag MACD](https://www.luxalgo.com/library/indicator/zero-lag-macd/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/zero-lag-macd.md
- [MACD](https://www.luxalgo.com/library/indicator/macd/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/macd.md
- [OsMA](https://www.luxalgo.com/library/indicator/osma/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/osma.md

---

Source: https://www.luxalgo.com/library/indicator/macd-v/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/
