Master MACD
1. What is Master MACD indicator?
MACD:
Moving average convergence/divergence (MACD, orMAC-D) is a trend-following momentum indicator that shows the relationship between two exponential moving averages (EMAs) of a security’s price. The MACD line is calculated by subtracting the 26-period EMA from the 12-period EMA.
The result of that calculation is the MACD line. A nine-day EMA of the MACD line is called the signal line, which is thenplotted on top of the MACD line, which can function as a trigger for buy orsell signals.
Traders may buy the security when the MACD linecrosses above the signal line and sell—or short—the security when the MACD linecrosses below the signal line. MACD indicators can be interpreted in several ways, but the more common methods are crossovers, divergences, andrapid rises/falls.
Indicator Vault Master MACD:
The Master MACD indicator incorporates a FASTER, more adaptive kind of moving average – the Hull MovingAverage – in its algorithm. And because of this, Master MACD reactsfaster to market changes.
That way, it lets you enter the trend withnear-perfect timing. It helps you identify explosive breakout moves withgreater accuracy. And it spots divergences and market reversals earlier thantraditional indicators.
Hull Moving Average:
The main difference between the HMA and theother moving averages is that it responds to price changes quicker and can helpconfirm a trend or signal a price change at the right time.
While the HMA might be the most responsive,lag-resistant, it can experience whipsaws more often than the other movingaverages.
Trading with Master MACD – Method 1: Use Master MACD to enter a trendwith near-perfect timing
Here’s the rules I’d personally use to tradethe trends with Master MACD:
ONE: Identify the long-termunderlying trend using 50-day and 200-day moving average.
TWO: Use Master MACD to triggerthe trade.
Trading with Master MACD – Method 2: Use Master MACD to trade breakouts
Here’s the rules I’d personally use to tradebreakouts with Master MACD:
If the price breaks its 30-day highAND the Master MACD breaks its 30-day high, we’ll buy.
If the price breaks its 30-day lowAND the Master MACD breaks its 30-day low, we’ll sell.
Trading with Master MACD – Method 3: Use Master MACD to spot divergencesand market reversals
Here’s the rules I’d personally use to sport divergences and market reversals with Master MACD:
When the price makes a new swinglow, but the Master MACD does not => This is a bullish divergence, signaling that the market reversal will likely happen and the price will move upward.
When the price makes a new swing high, but the Master MACD does not => This is a bearish divergence, signaling that the market reversal will likely happen and the price will move downward.
2. Indicator settings:
MA type: choose the Moving Average calculation (SMA/EMA or Hull)
Fast/slow period: choose the numbers of periods being used in calculating MACD.
Signal period: choose the number of period for calculating the signal line.
ATR period for SL shift: the timeframe used to calculate the Average True Range for adjusting stop loss levels.
SL shift coefficient: a multiplier used with the ATR valueto adjust stop loss levels according to market volatility.
TP coefficient (from SL): a multiplier determining theTake Profit level relative to the Stop Loss distance.
Various Color settings: customize these colors to differentiate between bullish/bearish texts, MAuptrend/down trend lines, dashboard and TP/SL.
Max bars to calculate: the maximum count of past candlesticks considered by the indicatorfor its analysis.
3. Alert set-up:
To stay updated on potential tradingopportunities, you can set up alerts within the Master MACD indicator settings.
Step 1: From the indicator settings, customize your alerts by defining your desired parameters for buy and sell signals. The selected configurations will be used for notifications in Step 2.
Step 2: To receive notifications through the app, pop-ups, alert emails,Webhook URL, sound alerts, or email-to-SMS, enable these features by clickingon TradingView's Alert icon.
Step 3: Select Master MACD indicator from the “Condition” dropdown list
Step 4: A pop-up willappear as follows. Click on “Notifications”.
Step 5: Choose the types ofnotifications you'd like to receive, and click the “Create” button.
