Triple Smoothie Adaptive MACD

The Triple Smoothie Adaptive MACD indicator provides a multi-layered momentum perspective by applying adaptive moving averages across three distinct timeframes to filter market noise. It aims to offer a smoother alternative to the traditional MACD by layering calculations that isolate trends of varying durations.

Usage

The indicator can be used to identify trend direction and momentum shifts through its three distinct lines (o1, o2, and o3).

• Trend Identification: The thicker, dotted line (o3) represents the longest timeframe. When this line is green and rising, it indicates a bullish long-term bias. When it is maroon and falling, it indicates a bearish long-term bias.
• Momentum Confluence: The faster lines (o1 and o2) oscillate around the o3 baseline. When o1 and o2 are above o3 and the fill is green, it suggests strong bullish momentum. Conversely, when they are below o3 and the fill is red/orange, it suggests bearish momentum.
• Zero-Line Crosses: Crosses of the o1 line over the zero level can be used as potential entry or exit signals for shorter-term momentum changes.

Details

The script utilizes a custom adaptive moving average function (f_ama) based on the DEMA (Double Exponential Moving Average) logic: 2 * EMA(src, length) - EMA(EMA(src, length), length). This calculation is applied hierarchically:

1. Three adaptive moving averages (ma1, ma2, ma3) are calculated using the user-defined lengths.
2. Differences between these averages (and the source price) are calculated to extract momentum components (v1, v2, v3).
3. These components are then reconstructed into three output series (o1, o2, o3) to create a "triple-smoothed" visual representation of market cycles.

Settings

• Source: The price data used for the calculations (default is Open).
• Length 1: The period for the fastest internal moving average.
• Length 2: The period for the intermediate internal moving average.
• Length 3: The period for the slowest internal moving average.
• Smooth: The length applied to the final smoothing of the momentum components.

FAQ

How do I interpret the colors of the Triple Smoothie Adaptive MACD?

The colors are dynamic based on the slope of the long-term trend (o3) and the relative position of the shorter-term oscillators (o1 and o2). Solid green/maroon indicates strong trend alignment, while lighter shades (olive/orange) indicate potential weakening or divergence.

Can I use this for scalping?

While the default settings are designed for a broader view, adjusting "Length 1" and "Smooth" to lower values can make the indicator more responsive to short-term price fluctuations suitable for scalping.

How do I get access to this tool?

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