This indicator is a composite of MACD and Z-Score (requested by @ChartAt). The general idea is that counter-trend component of the Z-score is used to adjust/improve the trend component of the MACD. The advantage is that it is a more accurate and “assumption-free” and can more accurately describe how a market or stock actually works in a given time frame.
I have also added support to smooth out the MAC-Z using Laguerre filter (Thanks @TheLark for the excellent LMA). Note that smoothing removes the "noise" component additive of Z-Score, so you may miss some good signals. By default Laguerre smoothing is OFF, I suggest playing with the Gamma to see if you can find a proper trade-off value.
Is this a TOS script? I can't get it to work.
any help is appreciated.
L2H
MONEYMENOW
⋅
SO FAR THE BEST IN MY COLLECTION.. SUPER LEADING INDICATOR.. LAZY BEAR.. KING OF INDICATOR..HATS OFF...THANKS
cooney_s
⋅
If I may, since you offered the invitation, traders can experiment with the settings for Laguerre function with the following gamma ratios of 0.577215 (Euler's constant), 0.739085 (Dottie number), 0.618 (fib), 0.786129 (square root of 0.618), 0.809 (one half of 1.618), 0.886 (Spearman's critical value ALSO a critical value for Harmonic patterns). Everyone tends to have personal preference with figures and then of course each trading instrument has their own sine wave frequency. If those figures seem too "slow" or smooth for personal preference simply take a fraction of a particular figure. Example, for ratio 0.886 set the gamma to 0.0886. Hope this helps.
Love your work LB, keep posting!
sjc
LazyBear
⋅
Thx for sharing this info. Defn worth checking out.
DJames
⋅
Does this work on Mt4?
LazyBear
⋅
This is written in Pinescript (Tradingview's scripting language), so cannot be run directly on MT4.