True Range Percentage MACD

True Range Percentage MACD (TR% MACD) is a volatility-oscillator that measures relative range movement and applies MACD logic to identify volatility momentum cycles.

What it measures

True Range (TR) captures intrabar range plus gap effects.

This script converts TR into a percentage of price:

TR%=TR×100 / ∣Sourcet−1∣

(Source defaults to HL2 and uses the prior bar value for normalization; a minimum tick guard is applied to avoid division by zero.)

Smoothing

TR% can be smoothed using a selectable moving average type (EMA, SMA, RMA, VWMA, WMA, ALMA, SWMA, HMA, or NONE) and a dedicated smoothing length. This helps control noise before MACD processing.

MACD on volatility

The indicator then computes:

MACD = MA(TR%)fast − MA(TR%)slow

Signal = MA(MACD)signal

Histogram = MACD − Signal

Interpretation

This is not a price-trend MACD—it's a volatility momentum MACD:

Rising histogram often indicates increasing relative volatility (range expansion accelerating).

Falling histogram often indicates volatility cooling (range expansion decelerating / contracting).

Crossovers can help time transitions between quiet and active regimes, and complement trend systems (e.g., filter breakouts to periods of rising volatility).

Visuals & alerts

Histogram uses a 4-state coloring (positive/negative + rising/falling).

Optional plot shows smoothed TR%.

Built-in alerts:

histogram rising→falling and falling→rising state flips

MACD crossing Signal (up/down)

MACD crossing zero (up/down)