Here’s a MACD with a few subtle changes:
1) The price data used is (H+L+C)/3 rather than the close. I find this makes a subtle improvement in the display of divergences.
2) You can plot a second long time frame MACD line on the same chart (hidden by default).
3) The histogram bars are colored based on the relationship to the previous bar vice the standard above/below zero line coloring.
4) The color of the main MACD line is white when the slope is positive and purple when negative.
MACD HLC/3
# MACDHLC
# http://thinkscripter.wordpress.com
# thinkscripter@gmail.com
# Last Update 17 Jan 2009
declare lower;
input ShortTimeFrameFastLength = 7;
input ShortTimeFrameSlowLength = 28;
input STFMACDLength = 7;
input LongTimeFrameFastLength = 28;
input LongTimeFrameSlowLength = 112;
input LTFMACDLength = 5;
def fastAvg = ExpAverage(data =hlc3, length = ShortTimeFrameFastLength);
def slowAvg = ExpAverage(data = hlc3, length = ShortTimeFrameSlowLength);
plot STFValue = fastAvg - slowAvg;
STFValue.setLineWeight(2);
DEF STFslope = (STFValue-STFValue[1]);
DEF STFslopeColor = if(STFslope>00.0,9,0);
STFValue.AssignValueColor(getColor(STFSlopeColor));
plot STFAvg = ExpAverage(data = STFValue, length = STFMACDLength);
STFAvg.SetDefaultColor(GetColor(8));
def LfastAvg = ExpAverage(data =hlc3, length = LongTimeFrameFastLength);
def LslowAvg = ExpAverage(data = hlc3, length = LongTimeFrameSlowLength);
plot LTFValue = LfastAvg - LslowAvg;
LTFValue.setDefaultColor(color.green);
LTFValue.hide();
plot Diff = STFvalue - STFavg;
diff.AssignValueColor(if diff >= diff[1] then Color.UPTICK else Color.DOWNTICK);
Diff.SetPaintingStrategy(PaintingStrategy.HISTOGRAM);
Diff.SetDefaultColor(GetColor(5));
plot ZeroLine = 0;
ZeroLine.SetDefaultColor(GetColor(0));
