MACD, short for moving average convergence/divergence, is a trading indicator used in technical analysis of stock prices, created by Gerald Appel in the late 1970s. It is designed to reveal changes in the strength, direction, momentum, and duration of a trend in a stock's price. The Moving Average Convergence Divergence (MACD) is a technical indicator that is used to identify trend direction and strength. It is calculated by taking the difference between a fast exponential moving average (EMA) and a slow EMA of the asset's price. The resulting value is then smoothed using a moving average, resulting in the MACD line. The MACD is often displayed on a chart as a single line, along with a signal line that is typically a nine-period EMA of the MACD line. The MACD is also typically displayed with a histogram, which shows the difference between the MACD line and the signal line.  Traders often use the MACD to identify trend direction and strength, as well as to confirm the presence of a trend. For example, a trader might look for a crossover of the MACD line and the signal line as a potential trend reversal signal, or look for a divergence between the MACD and the price action as a potential trend confirmation signal. Overall, the MACD is a useful tool for identifying trends and can be a helpful addition to a trader's toolkit. The MACD from the Jackrabbit suite and modulus framework supports differential timeframe analysis and confirmational bias. Timeframes supported: 1 Second, 5 Seconds, 15 Seconds, 30 Seconds, 1 Minute, 5 Minutes, 15 Minutes, 30 Minutes, 45 Minutes, 1 Hour, 2 Hours, 3 Hours, 4 Hours, 6 Hours, 8 Hours, 12 Hours, 1 Day, and any custom timeframe TradingView supports. Both the primary and confirmational MACDs can also have their own source input: Open, Close, High, Low, HL2, HLC3, and OHLC4 The main indicatior and the confirmational indicator can both be
individually tuned for the length and smoothing, with many different moving
average types:
The Jackrabbit modulus framework is a plug in play paradigm built to operate through TradingView's indicator on indicatior (IoI) functionality. As such, this script receives a signal line from the previous script in the IoI chain, and evaluates the buy/sell signals appropriate to the current analysis. The results are either combined with the signal line, or used as confirmation to the signal line. A new signal line is generated for the next script in the link. Buy/Sell alerts are produced, but this script is not designed or meant to function outside my framework. By default, the signal line is visible and the charts are turned off. Signal line visibility is controlled by the Style tab, and the charts display is controlled by the indicator settings tab. This script is part of a subscription along with 20 other scripts that make up Jackrabbit TV. For more information, please visit my patreon site. |
