Momentum indicators are technical analysis tools that can be used to determine the strength or weakness of the stock price. Momentum measures the speed at which stock prices rise or fall. Common momentum indicators are the relative strength index (RSI) and the moving average of convergence divergence (MACD).
Function
[blackcat] L2 Momentum Line Convergence Divergence (MLCD) is one of my innovative indicator which is to differeniate with average of convergence divergence (MACD). So, I named it as Momentum Line Convergence Divergence (MLCD). In order for everyone to be more familiar with its useage, I inherited the traditional MACD expression method, and added golden cross (yellow cross) and dead cross (fuchsia cross) prompts, as well as bottom divergence (lime cross) and top divergence (red cross) prompts.
Key Signal
mtm --> momentum fast line mtmaux --> momentum slow line mtmgx --> momentum gold cross in yellow mtmdx --> momentum dead cross in fuchsia mtmbotdiverg --> momentum bottom divergence alert in lime cross mtmtopdiverg --> momentum top divergence alert in red cross
Pros and Cons
Pros:
1. very stable for market price change and trend following 2. visual bottom and top divergence alerts are provided
Cons:
To be found yet
Remarks
Blackcat1402 brand MLCD indicator
Readme
In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.
The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.
Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.
Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.
Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.
Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.
Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.
Dear Blackcat ,
I have just gone through your the above pine script and found very effective even in Indian Stocks too. Thanks for sharing your Ideas . Creative ideas
when shared are Gems .
Regards ,
Vakharia M J
blackcat1402
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@MaheshVakharia, glad to hear it is valid for Indian market and enjoy it:D
MaheshVakharia
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@blackcat1402 Yes , I have Tested and it worked as per expectation .One observation , when seen on monthly charts it is PERFECT but same parameters doesn't work on WEEKLY and DAILY charts . This is to be seen as Suggestion rather than Critics .
blackcat1402
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@MaheshVakharia, thanks for comments, i will look into this and improve it. Wish you can feedback more then :D
Dear Blackcat1402 , Thanks for your this beautiful script , just one question , how we can make use, to screen the stocks of given markets as there are numbers of scripts ?
Just when the Yellow line getting converts to Red Line and Red Line crossing over the Zero line from Below ?
Second the Yellow Histogram yellow line crossing the Zero Line from Below ?
Do we require to write python script ?
Thanks and Regards ,
I have just gone through your the above pine script and found very effective even in Indian Stocks too. Thanks for sharing your Ideas . Creative ideas
when shared are Gems .
Regards ,
Vakharia M J