This product is an indicator Moving Average Convergence / Divergence Histogram with zero delay. Indicator MACDHistZL compared with standard MACD Histogram outputs signals to some bars before and divergence / convergence expressed more clearly. Green bars indicate an increase in the distance between the fast and slow line, and red – to decrease.
A bit of theory:
Most often, the indicator is used to identify trading signals during sideways price – after a period of stabilization rate increase or decrease (consolidation).
- Typically, the “Buy” signal considered when sliding with a smaller period (blue line) in the lower zone intersects the bottom upwards with sliding bo? Lshim period (red line).
- Signal “Sell” consider when moving to a smaller period in the upper zone crosses from top to bottom with a sliding bo? Lshim period.
The larger the time frame, the less will be false alarms. Good results give the weekly and daily charts, to a lesser extent – hour. At short time scales relative volatility higher.
If ever a “buy” when moving shorter period crosses the moving longer period from the bottom up, and “sell” when it crosses from top to bottom, the results can be bad: after crossing the moving average shorter period moving average of a longer period from the bottom up the price often pulls back in opposite direction, resulting in a loss in the open position of this intersection.
The distance between the fast and slow MACD lines during the time changes, these changes give good additional signals. In order to make it easier to recognize the need to build the MACD histogram, which is based on the following simple formula:
MACD Histogram = MACD fast line – Slow MACD line.
The values obtained using this formula, it is better represented as a histogram. When the fast line is above the slow, the histogram is positive, it is above zero and its value indicates how fast line on (above) slow. When the fast line is below the slow, the histogram is negative, its value shows how quickly On-line (below) slowly.
- With the growth of a histogram (histogram of the previous column below the following), regardless of the position of the histogram above or below zero, increasing the strength of bulls (players on the rise), a signal for transactions on the rise.
- When the histogram falls (previous column histogram above the next), amplifies the power of bears (players on the decline), it is a signal for the transactions in the fall.
Divergence – divergence indicator and the price chart orientation so that a higher maximum prices is not confirmed by a higher high on the MACD indicator (bearish divergence), or vice versa, a lower low is not supported by a minimum of the display (bullish divergence). These signals are common to all oscillators.
Typically, the occurrence of divergence means the completion of movement (attenuation force trend) and possible strong correction or reversal. The more the price chart timeframe, the stronger the signal.
MACD Histo Global Description Colored MACD Histo universal indicator (MACD histogram). It is possible to paint increases and decreases histogram…
Angle MA The indicator shows the moving average tilt angle in degrees. It will be interesting to those who in their trade actively uses Moving Averages…
All inOneDemo Features The demo version of the indicator All inOne indicator Only works on EURUSD, the full version works on all currency pairs. All in…