Easy-Read MACD (Signals & Zones)

This Pine Script transforms the traditional MACD into a much clearer, more visual momentum tool. It calculates the standard MACD (12, 26, 9) and then enhances readability using color cues and signal markers. The histogram bars dynamically change brightness to show whether momentum is strengthening or weakening — bright green/red means increasing strength, while faded colors mean losing momentum.
Background colors further simplify interpretation: green when MACD is above zero and above the signal (bullish), red when below zero and below the signal (bearish), and pale yellow in neutral or transition periods. Arrows clearly mark signal-line and zero-line crossovers, giving instant visual confirmation of bullish or bearish momentum shifts. The indicator also includes optional alerts for these events, so you can get notified when momentum flips even without watching the chart.
⚡ Quick-Read Sheet
Green background:
→ MACD > 0 and above signal — bullish momentum zone. Market trending up.
Red background:
→ MACD < 0 and below signal — bearish momentum zone. Market trending down.
Yellow background:
→ Transition or sideways momentum. Trend is uncertain — avoid strong directional trades.
Bright green histogram bars:
→ Positive momentum increasing — bulls gaining strength.
Faded green histogram bars:
→ Positive momentum weakening — rally may be losing steam.
Bright red histogram bars:
→ Negative momentum increasing — bears gaining control.
Faded red histogram bars:
→ Negative momentum weakening — possible bottoming or reversal setup.
Up arrow “MACD↑Sig”:
→ MACD crosses above signal line — bullish shift, potential buy or long continuation signal.
Down arrow “MACD↓Sig”:
→ MACD crosses below signal line — bearish shift, possible sell or short signal.
Up arrow “MACD>0”:
→ MACD crosses above zero line — confirms bullish trend bias.
Down arrow “MACD<0”:
→ MACD crosses below zero line — confirms bearish trend bias.