This block is linked to the momentum indicator “Moving Average Convergence Divergence”. You can get more info on MACD on Investopedia and learn how to use it on the Tradingview wiki.
This block is good in a strategy that will depend on the state of the market (bullish or bearish) and can help you to direct your strategy flow in the right direction!
You can select the analysis period you wish, as well as every length that compose the MACD indicator (slow, fast and signal) for maximum optimization.
This block can be tuned from several parameters:
- Signal Line is where the block will focus on the behavior of the MACD against the Signal line.
- Zero Line is where Zero Line Crossovers occur when the MACD Line crosses above or below the Zero Line (go from negative to positive [bullish] or from positive to negative [bearish]).
- Crossover If you chose this setting, whenever the MACD line crosses the ‘Analysed Line’ depending on the signal you wish (Bearish or Bullish), the block is triggered.
- Position If you chose this setting, whether the MACD line is is above or below the ‘Analysed Line’ depending on the situation you wish (Bearish or Bullish), the block is triggered.
|Remember to chose your signal type ! It is very important for your strategy!|
In Bullish signal type
- Zero ligne When MACD line is above 0
- Signal When Signal line is above the MACD line
Check more about MACD indicator here: https://www.tradingview.com/wiki/MACD_(Moving_Average_Convergence/Divergence)#SIGNAL_LINE_CROSSOVERS