MACD Crossover with +/- Filter

The MACD Crossover with +/- Filter indicator tracks MACD crossovers and monitors subsequent momentum by identifying specific price shifts of 3 units from the initial crossing point. This tool is designed to filter out minor fluctuations and highlight significant trend strength following a signal line crossover.

Usage

The MACD Crossover with +/- Filter can be used to identify potential trade entries based on momentum confirmation after a MACD/Signal line cross.

• Trend Identification: The script plots circles on the chart to indicate trend shifts. A green circle suggests a short-term bullish trend confirmed by a positive value change, while a red circle indicates a short-term bearish trend confirmed by a negative value change.
• Initial Trade Ideas: The first circle appearing after a crossover represents the primary trade idea. Subsequent circles confirm that the trend maintains the required momentum threshold (a change of at least 3.00 from the previous reference point).
• Targeting Futures: While applicable to various assets, it is optimized for high-volatility environments like NQ or ES futures on lower timeframes (1m, 5m, 15m).

Details

The script functions by storing the value of the MACD line exactly when a crossover or crossunder occurs. It then compares the real-time MACD value to this stored reference. A "Long Condition" is triggered when the MACD rises 3 units above the cross value, and a "Short Condition" is triggered when it falls 3 units below. This logic ensures that the signal is only generated when there is sufficient follow-through following the initial technical cross.

Settings

Inputs

• Fast Length: Sets the period for the faster moving average used in the MACD calculation.
• Slow Length: Sets the period for the slower moving average used in the MACD calculation.
• Source: Determines the price data used for calculations (e.g., Close, Open, HL2).
• Signal Smoothing: Adjusts the length of the Signal Line moving average.
• Oscillator MA Type: Allows the user to choose between SMA or EMA for the MACD line components.
• Signal Line MA Type: Allows the user to choose between SMA or EMA for the Signal Line.

FAQ

How do I access the MACD Crossover with +/- Filter?

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

What do the colored circles represent?

Green circles represent a bullish momentum shift where the MACD has moved +3 units from the last cross. Red circles represent a bearish shift where the MACD has moved -3 units from the last cross.

Which timeframes are best for this script?

The script is most effective on lower timeframes such as the 1m, 3m, 5m, and 15m for scalping or day trading momentum.