Trend-Filtered MACD Direction Arrows with Three NavelEMAs
Summary
This document describes a semaphore-style indicator that combines three NavelEMA moving averages. Two averages are used to derive MACD values and identify a change in MACD direction; a third average supplies the trend filter. An arrow appears when the direction change agrees with that trend.
The description characterizes the indicator as useful in trending markets and ineffective in flat conditions. It provides no performance tests, parameter settings, or additional rules for managing trades, so it explains a signal-generation method rather than a complete trading strategy. The original implementation was published in MQL4, and the MQL5 version depends on a separate smoothing library that must be installed in the platform's include folder.
Key ideas
- Two moving averages produce MACD values used to detect a change in direction.
- A third moving average filters signals according to the prevailing trend.
- An arrow is plotted when the MACD direction change agrees with the third average's trend.
- The author describes the indicator as suited to trends and ineffective in flat markets.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.