MACD-v: Volatility-Normalized Momentum and Multi-Timeframe Scanning

Summary

MACD-v measures the spread between fast and slow exponential moving averages relative to average true range, then scales the result. A smoothed signal line and histogram provide momentum direction and change. The document describes oscillator, histogram, and combined display modes, plus six labels for momentum conditions, from range-bound behavior to directional pressure. It also explains how reference levels and an independent calculation timeframe can add context.

A companion panel scans one symbol across timeframes or several symbols across timeframes, showing values, state labels, and histogram bias. The method’s rationale is that volatility normalization can make momentum readings more comparable as market volatility changes. The document cites industry awards for the original research, but supplies no performance tests or evidence that the indicator predicts returns. It recommends using the readings alongside market structure or other confirmation, and notes that chart and calculation timeframes should be aligned. The MT4 implementation is a scanning and analysis tool; it does not specify entry, exit, or risk rules.

Key ideas

• MACD-v divides the fast-minus-slow EMA spread by ATR to express momentum relative to volatility.
• The signal line and histogram show momentum direction and whether pressure is expanding or fading.
• The oscillator assigns descriptive states to conditions such as range, rally, rebound, and reversal.
• A panel can scan symbols and timeframes, with broker-specific symbol aliases available.
• The indicator provides no tested trading rules, so its readings need independent confirmation and risk controls.

Tags

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