SAR MACD

The SAR MACD indicator combines Directional MACD with Parabolic SAR to provide a multi-layered approach for detecting and confirming market trends while filtering out false signals. By integrating MACD trend oscillations, standard MACD calculations, and Parabolic SAR (PSAR) values, the tool aims to identify confirmed momentum shifts and highlight sideways price action using adjustable threshold levels.

Usage

The SAR MACD can be used to identify trend direction and potential entry points by observing the alignment of its internal components.

• Bullish Confirmation: Look for the signal line to turn green (indicating PSAR is below price), the MACD histogram to move above the zero line, and the histogram/candles to turn green. A bullish MACD crossover is often required for entry confirmation.
• Bearish Confirmation: Look for the signal line to turn red (indicating PSAR is above price), the MACD histogram to move below the zero line, and the histogram/candles to turn red. A bearish MACD crossunder is typically required for entry confirmation.
• Sideways Detection: Threshold levels on the oscillator help identify periods of low momentum or range-bound markets. If price action stays within these bands, the trend is considered unconfirmed (often indicated by neutral/yellow coloring).
• Graph Modes: Users can switch between 'MACD' mode, which focuses on the trend relationship between the MACD and Signal lines, and 'HIST' mode, which emphasizes the histogram's relationship to the zero line and price direction.

Details

The script implements a hybrid model that synchronizes the standard MACD (12, 26, 9) with a Parabolic SAR (0.02 increment). The logic ensures that signals are only considered valid when both the trend (PSAR) and momentum (MACD) are in agreement. This confluence helps eliminate "fake" MACD crossovers that occur against the primary trend. The inclusion of a status table provides real-time data on candle direction, MACD trend status, and the time elapsed since the last crossover.

Settings

General Settings

• Status Table: Toggles the visibility of the on-screen information table.
• Sideways Limit: Sets the threshold (in ticks) to define the neutral/sideways zone on the oscillator.
• Graph Type: Switches the primary visual output between standard MACD lines and a focus on the Histogram (HIST).

FAQ

How do I use the SAR MACD for entries?

Entries are generally considered when the MACD lines cross in the direction of the Parabolic SAR, supported by histogram alignment above or below the zero line and confirmed candle coloring.

Can I use this as a standalone system?

While the SAR MACD provides multiple levels of confirmation, it is best used as a component of a broader trading strategy rather than a standalone signal generator.

How do I access SAR MACD?

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