Traditional MACD with Smoothed Momentum and Crossover Alerts

Summary

This indicator combines a conventional MACD with a smoothed momentum measure and two event notifications. MACD is defined as the difference between fast and slow exponential moving averages; a moving average of MACD forms the signal line, and subtracting that signal produces the histogram. The momentum series compares MACD values separated by a configurable number of bars and then smooths the result with a moving average.

The indicator can be adjusted through parameters for price input, moving-average periods and methods, momentum spacing and smoothing, and the number of bars processed. It marks MACD crossings of zero and reversals in the momentum series as events. In the described implementation, these messages are printed in the platform’s experts panel; users would need to change the notification calls to receive alerts. The document explains construction and configuration, but supplies no trading rules, testing, or evidence that either event predicts profitable trades.

Key ideas

• MACD is calculated as the fast exponential average minus the slow exponential average.
• The signal line smooths MACD, and the histogram is the difference between MACD and its signal.
• Momentum compares MACD values separated by a configurable bar interval and smooths the result.
• The indicator identifies MACD zero crossings and momentum reversals as separate events.
• Its notifications are printed by default, and the article provides no performance evaluation.

Tags

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