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ST MACD Indicator: User Guide

Link on TradingView: ST MACD [CTH] by CryptoTradesHub on TradingView.

The ST MACD Indicator combines the power of the MACD (Moving Average Convergence Divergence), Volume Spike Detection, and the Super Trend Indicator to provide clear signals for trend-following and momentum-based trading strategies. This comprehensive tool simplifies market analysis by offering actionable insights through visual cues.

How the Indicator Works

MACD

The MACD measures the divergence between two EMAs (12 and 26 periods).

Trend Assist Colors:

  • Blue: Indicates positive MACD momentum (above 0 line and up-sloping).
  • Red: Indicates negative MACD momentum (below 0 line and down-sloping).

Volume Spike Detection

Detects significant volume spikes by comparing current volume to the 50-bar average volume. The Spike Factor (adjustable in inputs) defines how many times larger the spike needs to be compared to the 50-bar average. Volume spikes are visually represented with a lightning icon below the corresponding candle.

Super Trend Indicator

The Super Trend Indicator is a trend-following tool based on price action and volatility. It prints green for bullish trends and red for bearish trends, providing a clear indication of the market direction.

Trade Setups

Step 1: Long Position

Super Trend Confirmation

  • Ensure the Super Trend is printing green, indicating a bullish market trend.

MACD Momentum

  • For safer trades, confirm the MACD line is blue and above the 0 line, signaling strong upward momentum.

Optional Volume Spike Entry

  • Look for a volume spike (lightning icon below the candle) to time your entry during heightened market activity.

Step 2: Short Position

Super Trend Confirmation

  • Ensure the Super Trend is printing red, indicating a bearish market trend.

MACD Momentum

  • For safer trades, confirm the MACD line is red and below the 0 line, signaling strong downward momentum.

Optional Volume Spike Entry

  • Look for a volume spike (lightning icon above the candle) to time your entry during heightened market activity.

Customization Options

Inputs

MACD Settings

  • Adjust the fast and slow EMA lengths to fine-tune the MACD to your preferred market conditions.

Volume Spike Factor

  • Modify the spike factor sensitivity to determine how significant a volume spike must be compared to the 50-bar average. Default settings are optimized for most scenarios.

Super Trend Settings

  • Customize the Super Trend values (e.g., ATR period and multiplier) to suit different time frames or volatility levels.

Visual Adjustments

Color and Icon Customization

  • Adjust colors for MACD lines, trend assist backgrounds, volume spike icons, and Super Trend plots to match your charting style.

Plot Visibility

  • Enable or disable specific visual elements such as volume spike icons, MACD backgrounds, or Super Trend colors for a cleaner chart layout.

Practical Tips

  • Use the Super Trend for directional bias and trade only in the direction of the prevailing trend.
  • Combine MACD momentum and volume spike detection for higher-probability entries.
  • Experiment with inputs to optimize the indicator for your trading strategy and time frame.
  • Pair the ST MACD Indicator with additional tools like candlestick patterns or support/resistance analysis to enhance your decision-making.

For more details, visit the ST MACD [CTH] by CryptoTradesHub on TradingView.