Zero-Lag MTF PSAR MACD with Bollinger Bands v1.0 [loxx]
This is an experimental indicator that captures PSAR movements on seven different timeframes in order to improve trend detection on the daily timeframe. The seven PSARs are averaged and then fed into a zero-lag MACD function where the average of the PSARs is the source for the slow moving average and the daily timeframe close is the sourse of the fast moving average.
Things to know: - Dark Green Background: All seven PSAR waves are above the closes of the PSARs respective timeframes; i.e., macro trend up - Dark Red Background: All seven PSAR waves are below the closes of the PSARs respective timeframes; i.e., macro trend down - Histogram and bar coloration is based on the difference between close and the average of all seven PSARs - Various color schemes included - Indicator has neither been backtested nor tuned with a strategy backtest
How to use: Reversal Longs and Shorts - Bollinger Bands show movement outside of normal deviation around the zero line. Wait for MACD to reach the either side top or bottom of Bollinger Bands for reversal long and reversal short respectively - Check that MACD has crossed over or under the Signal line; i.e., denoted with a green dot for cross up and red dot for cross down - Check dark background colors to see where the PSAR waves are currently situated and whether PSAR wave direction has aligned on all time frames
Longs and Shorts - Longs: Check when MACD is above the zero line and the Signal line crosses over the zero line - Shorts: Check when MACD is below the zero line and the Signal line crosses below the zero line
Strong Confluence: - Longs/Shorts: Whenever the MACD crosses up or crosses down over/under the Signal/Zero line while inside a candle with background highlighting - Reversals: Whenever the MACD crosses up or crosses down over/under the Signal/Zero line while inside a candle with background highlighting and at the very top/bottom or outside the top/bottom of the Bollinger Bands
Comment below or send a PM with questions, comments, observations, or concerns.