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An RSI-Adaptive MACD with Floating Overbought and Oversold Levels

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Summary

This indicator adapts the moving averages in a MACD calculation using RSI, while retaining the basic idea of comparing faster and slower averages. It adds floating outer levels to help identify overbought and oversold conditions, addressing a limitation of conventional MACD, whose values are not bounded by fixed thresholds.

The document describes four coloring modes: changes in MACD slope, MACD and signal-line crosses, slope changes around outer-level crosses, and slope changes around a floating midpoint cross. It offers no formulas for the adaptive averages or floating levels, parameter guidance, chart examples, or performance evidence. The tool is presented as usable like a conventional MACD, so interpretation and trading decisions still require independent testing and risk controls.

Key ideas

  • The indicator calculates MACD using RSI-adaptive exponential moving averages.
  • Floating outer levels are added to mark potential overbought and oversold regions.
  • Coloring can respond to slope changes, signal crosses, outer-level crosses, or midpoint crosses.
  • The description provides no parameter details or evidence of trading performance.

Tags

Technical indicatorsMomentumVolatility

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.