=== INTRO === This is a 2 in 1 indicator, STOCHASTIC + NORMALIZED MACD. I release this script as public because both stochastic and normalized macd are public, so I cannot find any reason to post it as private :)
=== USAGE === You can use any of the indicators by itself as usual, stochastic as a oversold/overbought indicator as a momentum/trend indicator. Usually, crossovers are used for LONG/SHORT entries. I added dots for crossovers as well as background colors to show movement direction when both indicators agree: green = bullish, red = bearish and orange = range/consolidation.
=== SETTINGS === Default settings for both indicators have been changed (but they're of course configurable), to make them work better together. You can also change NMACD moving average time to SMA or WMA instead of SMA, SMA is really slow for me but give it a try, WMA is more aggressive.
=== RECOMMENDATIONS === Always look for higher timeframes, for example, if you're trading 1h, don't try to catch a 1H "ALL GREEN" LONG while 4H is "ALL RED" because otherwise you're just "trying" to catch a bounce in the 1H chart that could never happen, always trade with the main trend. Try to catch both crossovers in the opposite area, ex: try to LONG when both indicators are below 50 and SHORT above. I did not test divergences on this indicator, as the MACD is normalized i prefer to use a standard MACD for that, but you can use the stochastic for sure.
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Added custom oversold and overbought levels, remember, if both indicators make a crossover/cross under on their respective zones trades will be more accurate and safe. Added option to volume weight the MACD. Stochastic settings changed to K=6 and D=6 by default, this removes fake signals and make it work better with the MACD.
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English: - Added option to highlight background color ONLY if the NMACD is overbough or oversold when crossover/crossunder occurs.
Español: - Agregada opción para resaltar el color de fondo SOLO cuando el NMACD está sobrecomprado o sobrevendido cuando ocurren los cruces al alza/baja.
Excelente trabajo! Se agradece. Dejo una observación: El histograma del MACD tiene ligeras diferencias con respecto al original (Convergencia/Divergencia de la media móvil) aunque se configuren iguales (12-26-9). Por ejemplo: El "original" puede mostrar volúmenes rojos y este verdes y viceversa para el mismo precio del activo. Esto no es tan grave, pero para aplicar algunas estrategias puede generar dudas. Si es a propósito, pido disculpas. Saludos y gracias nuevamente.
JoseMetal
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@PG11, Gracias compañero, de hecho en la descripción pongo que no se recomienda usarlo para divergencias debido a que es un MACD NORMALIZADO, por ende, los valores fluctúan de 0 a 100 y los histogramas variarán con el original, además los valores por defecto son ligeramente diferentes para hacerlo más preciso, siento que la descripción no esté en castellano de entrada, los administradores de TradingView me lo suelen bloquear si lo pongo en ambos idiomas de entrada, en la actualización lo pondré en castellano :)
PG11
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@JoseMetal, si, fue mí error de no mirar la escala. Gracias igual. Saludos.