MACD-v - MetaTrader 4 Script | Trading Script Download - MT4/MT5 Resources - MetaTrader 5 Resources

Idea written by : Alex Spiroglu , Author of the code : Ou

This indicator is based on the following principles: MACD-v: Volatility Normalized Momentum , a 2022 research paper by Alex Spiroglou. In that paper, which received the Charles H. Dow Award (2022) from the CMT Association and the Founders Award (2022) for Advances in Active Investment Management, Spiroglou developed a refined explanation of momentum by incorporating volatility-sensing behavior into a MACD-style framework. Inspired by this concept, this indicator uses the traditional MACD structure to provide clearer transitions, more stable signals and improved visual interpretation during volatility changes.

The indicator calculates fast and slow moving averages of the selected price source, derives the MACD line as their difference and forms a smooth signal line. The histogram represents the gap between MACD and signal, which helps to identify momentum build-up, exhaustion, and early trend shifts. Crossovers and histogram expansions are major trade timing clues. Zero-line interactions reveal broader changes in momentum status, while contractions warn of potential reversals or consolidation phases.

The interpretation remains consistent with standard MACD theory while providing a more balanced response to volatility. A MACD line crossing this signal signals rising bullish momentum; a break below it signals bearish momentum is building. An expanding histogram indicates acceleration, while a flattened histogram indicates deceleration. The divergence between price and histogram may highlight a weak trend. The indicator works effectively on all liquid trading symbols and timeframes, but for robustness it is recommended to use the higher timeframe trend filter for confirmation.

external variables

    
FastLen: The period of the fast EMA in the MACD-v numerator.
    
SlowLen: Slow EMA period; paired with fast spread.
    
SignalLen: EMA smoothing length of the signal line.
    
ATRPeriod: ATR review used to normalize MACD spreads (volatility scaling).
    
MaxBarsBack: Limit of processed historical bars (0 = use all available).
    
ShowHistogram: Toggles rendering of the MACD-v minus signal histogram.
    
ShowLevels: Allows the creation of predefined horizontal lines.

These variables enable users to customize sensitivity, display and alert behavior based on trading style. No symbol-specific configuration is required; it is suitable for all markets.

Recommended Use <br/>This indicator can be applied to any time frame. Day traders may prefer M15–H1, while swing traders or position traders will find H4–D1 beneficial. Combining the indicator with trend filters significantly reduces noise and improves lateral accuracy. Histograms are particularly useful for assessing momentum exhaustion and identifying potential reversals as expansion slows.

Attachment download

📎 MACD-v.mq4 (7.11 KB)

Source: MQL5 #66221