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🎯 purpose of usage the primary goal of this indicator is to provide traders with a powerful, macd centric toolkit for identifying potential price divergences early on, local & global reversals opportunities, and optimal entry/exit points traders should not expect perfectly timed divergence detection from this indicator, but what they can surely except is a reliable tool to detect divergences of many different kinds and quality except for the functionality of divergence detection, traders will be provided with the ability to gather broader market sentiment with reversal indicators and proprietary risk evaluation techniques, which will only enhance trader's performance in the long run our indicator completes all these tasks by automatically identifying and displaying regular and hidden divergences, both bullish and bearish traders can choose to see divergences based on the macd histogram or the macd line additionally, thanks to pinescript extensive functionality, all of these divergences can be visually duplicated both on the indicator panel and the main price chart at the same time, which makes the process of evaluating the divergences extremely easy; offering multiple filters including "strictness of divergences" (high, medium, low) to control the quantity and quality of signals, "types of divergences to show" (regular, hidden, or both), and an option to "show divergences in the same wave," allowing traders to choose whether or not they want to see divergences from in the same macd "wave" (term "macd wave" will be explained below in the 'application guide' section) employing mtf dashboard that displays information about the latest divergences (type, age, price) from four user selectable timeframes for the current asset, providing a broader market contex; generating unique buy (🚀) and sell (⚠️) signals based macd lines with conjunction of specialized filter these signals aim to highlight potentially strong price reversals; visually alerting trader about potential local reversing opportunities with additional signals (displayed as triangles on the chart), which are derived from a combination of oscillators and moving averages, offering confirmation signals independent of macd signals & divergences displaying dynamic risk bands around the macd histogram using statistical methods when the histogram extends beyond these bands, it indicates potential reversal zones on the bottom/top of macd panel with coloured diamond shaped labels, helping traders gauge overbought or oversold conditions within the macd itself; providing traders with extensive customization options, such as colors for divergences, macd histogram (gradient or classic style), macd lines, and risk bands all of that ensures clear and personalized chart visualization ⚙️ settings overview this indicator offers a wide array of customizable parameters and visual settings to tailor its functionality and appearance to any possible need let's review all the settings below 📈 application guide application methodology of this indicator may not be so easy to understand to an average trader, so we would like to discuss it in this section in depth also we will explore indicators functionality and the settings actually impact the visuals on the chart let's start with basic step — what will you see when you load the indicator on the chart for the first time this indicator consists of 6 main logic blocks divergences evaluation; mtf dashboard; macd signals; reversal signals; risk bands; advanced visualization let's review each of these blocks to understand precisely how the indicator works divergences evaluation before actually reviewing detection algorithm, we would like to make a step back to explain what divergences actually is and what types of them exist the term 'divergence' itself usually means that there is an inconsistency in the time series data of two sources to understand what divergence mean in the context of trading let's review the screenshot below from the screenshot above you can see, that a divergence appears, when two extremeums of price and indicators of the same timestamp are aligned in the different directions for example, if two lows of price are facing aligned downwards, but low of the indicator are aligned upwards, it is called a regular bullish divergence we won't waste time explain building principles of other divergences, because you can clearly see the pattern on the chart our indicator uses exactly the same templates for detecting divergences in real time however, it is one thing to imagine divergences on the chart and completely another to actually search for them on the real price history, because price impulse an corrections are not even close to the smoothness of the illustrated price moves on the latest screenshot above so, now we know what divergences mean, but how we do actually start to search for them on the chart? industry standard approach is use pivot points of price history and compare them with the pivot points of chosen indicator we believe that this approach is one the most effective ones on the market, because it is easy to replicate and the divergences that are found with the help of it are on average of decent quality however, pivot points require lookback parameter in order to determine pivots, which means, that when you change the lookback, this change will affect the pivot points on the chart 👍 rule of thumb the more lookback of pivot points is, the less pivot points on the chart will appear due to the fact macd's histogram changes quite smoothly, we can set lookback of pivot points to much lower values than average, because otherwise we will introduce too much lag to the indicator by 'lag' we mean the amount of bars it takes for the pivot point to be confirmed the bigger the lag, the longer we will have to wait for the pivot point to be confirmed default lookback value in this indicator is 2, which means, that pivot points are confirmed after 2 bars from the moments of their appearance this value of lookback is sufficient to get divergences on time and take action right away that being said, let's review the examples of divergences from our indicator on the screenshot below a few key observations from the screenshot above regular divergences divergences as marked as coloured label with 'r' symbol inside, while hidden divergences have 'h' inside their label (we will call this symbol 'divergence type symbol' from now on); if the divergence is bullish, label of the divergence will have bullish colour and '📈' before divergence type symbol; if the divergence is bearish, label of the divergence will have bearish colour and '📉' before divergence type symbol example regular bullish divergence => blue '📈r' label, hidden bearish divergence = red '📉h' label by the way, you can choose whether or not you want to see certain type of divergences on the chart (parameter 'types of divergences to show', group "divergences / main settings") and configure divergence display mode (parameter 'show divergences on the", group "divergences / visual settings') in the settings of the indicator let's review how changes in the settings above affect visuals of divergences on the screenshot below observations from the screenshot above are self explanatory, so we won't waste making additional comments on them we also need to mention, that by default this indicator displays divergences, which appear only on the macd histogram, but you can also choose to display divergences from macd line this way you will have more divergences to choose from and more options for your decision making process see how you can enable divergences from macd lines on the chart on the screenshot below from this screenshot you can see, that not all possible divergences are displayed on the chart why is that? this happens because we have additional filters, which prevent displaying of certain divergences, which don't pass special conditions we will review these filters in depth now at the moment of publication we have 3 parameters filters ''max waves to search", "strictness of divergences" and "show divergences in the same wave" each of them is configurable in the settings of the settings can be changed all of these filters are actively applied to the data of macd even before the divergence actually appears to ensure the highest possible quality of the detected divergences and minimum lag important note term "macd wave" will be used quite a number of times in the sections below by "macd wave" we mean a time range, where the macd histogram was consistently either bullish or bearish take a look at the screenshot below to visual explanation talking about ''max waves to search" parameter, this parameter controls how many macd waves will be scanned for divergences by default this parameter is set to 2, because with value indicator produces moderate amount of divergences and with a quite good quality it is important to note, that the value of this parameter already includes current macd wave for example, if this parameter is set to 2, indicator will scan for divergences current and previous macd waves see the visual explanation of this parameter on the screenshot below talking about "strictness of divergences", this is a quite sophisticated parameter, because it involves multiple threshold for filtering inside itself — 'high 🔴', 'medium 🟠' and 'low 🟢' high 🔴 this is strictest of all thresholds it works like this when a new macd wave is being formed, indicator tracks highest(for bearish divergences)/lowest(for bullish divergences) value of macd histogram tracking process ends when macd histogram crosses macd zero line after this cross latest found macd histogram highest/lowest extremum is saved to the pivot point array for future use and there starts the process of detecting divergences because macd histogram can appear either positive or negative for an unlimited time, events for macd crossing zero level cannot be predicted such events can occur 5 times during 20 last bars at one period of time and can occur once in 1000 bars at another this leads to the fact this threshold posses potentially very high lag, which can lead to taking trades very late however(!), during certain times in the market, where bullish and bearish macd wave frequently follow each other, this threshold actually prevents a lot of bad divergences from displaying, leaving on the best ones up to traders evaluation that being said, we advise every trader to evaluate this threshold on their charts and see if it can be of use for your own strategies see the example of divergence from 'high' threshold with explanation on the screenshot below medium 🟠 this is the default threshold for this indicator it produces enough divergences with minimum lag and loss of quality it works like this when macd histogram crosses macd zero level, indicator start to track highest/lowest histogram value, until macd histogram crosses this level again (same process as in 'high' threshold), but while the highest/lowest value is being tracked, indicator checks if newly found extremum creates divergence with previous extremums and if it does, divergence will be drawn immediately see the example of divergence from 'medium' threshold with explanation on the screenshot below (for the purposes of demonstration, we will enable parameter 'show divergences in the same wave', which will be explained after this section) low 🟢 the litest of all thresholds basically, this threshold allows any divergence to be on the chart this threshold has a lowest lag of all, which is equal to pivot lookback value, but also doesn't ensure quality of the divergences at all, making charts flooded with divergences of questionable quality, so would advise to use this threshold with great caution see the comparison of orderblocks from 'low' threshold to orderblocks of previous two thresholds you should notice how many divergences are generated with 'low' threshold and how bad most of them are however, during 'smooth' times, when markets move slowly and without chopiness, this threshold will find good divergences faster than any other threshold and these divergences will be actually good, so you shouldn't always bet against this threshold as always, we would advise traders to test it on their charts to decide wherever or not this threshold will be of use for them talking about "show divergences in the same wave", this parameter always indicator to search for divergences inside the same wave this parameter is off by default, because on average same wave's divergences are not that great however, only a personal back test of this threshold will reveal whether or not this parameter is useful for a particular market or time period however, to see the effects of this parameter you will likely need to switch to 'low' threshold of divergence strictness, because situations where this parameter has effect on other threshold, are extremely rare see example of divergences generated with show divergences in the same wave being turned on on the screenshot below that's it for divergence detection algorithms mtf dashboard this particular module is stupidly simple indicator requests data about latest divergence from four other timeframes of the current asset and display this data in the dashboard even though this kind of functionality is not that advanced and any experienced pinecoder could replicate it, we haven't found indicators with alike functionality even in the similar to this indicator paid products, which lead us to believe that this feature might be of good use to the traders, which use divergences in the trading strategy the purpose of mtf dashboard is very simple provide traders with understanding of global price sentiment by analyzing and displaying data about latest divergence from different timeframes it is also important to note, that because divergences are a considered to be rare events and good divergences are in fact rare, this dashboard display the age of the latest divergences of other timeframes to give a trader a understanding how up to date mtf sentiment from a particular timeframe is you can see the explanation on mtf dashboard's structure on the screenshot below contents of the dashboard are explained on the screenshot above, so we won't waste time explaining them again macd signals we decided to enhance this indicator with custom signals system to help traders for see potential global and local price reversal opportunities this way trading with divergences becomes less risky and traders have more clarity of the potential market risks, which will only help potentially increase their trading performance and prevent unnecessary losses in the long run talking about the signals of this particular module, we need to mention that these signals are fundamentally based crosses of macd line and macd signals line however, just displaying signals from crosses of macd lines wouldn't be sufficient simply because too much bad signals will be generated, because macd itself is quite old indicator which doesn't work as good as it did decades ago this fact lead us to creation of our own filter for macd, which is based on latest pivot points of macd and filters out lots of fake signals, helping traders focusing on the signals which really matter on the chart these signals are displayed as coloured labels, which have distinct emoji inside of them for visual clarity '🚀' for bullish signals and '⚠️' for bearish ones these signals are called "ultra signals" we would like to point out, that these signals should not be used as primary source of signals, but they can certainly be of use as bias confirmation tool for any other trading strategy you can see the examples of ultra signals on the chart on the screenshot below if you would like to find the best settings for ultra signals, you can try fine tuning macd settings in "macd / general settings" group in the indicator settings reversal signals this particular module is comprised of series of oscillators and moving average, working in conjunction to filter out market noise and provide traders with good local price reversal opportunities these signals are displayed on the chart as coloured up/down triangles, highlighting opportunities for bullish/bearish reversal respectively to achieve optimal quality of signals for your own strategy, you can try to experiment with 'lookback' parameter from "reversal signals / main settings" group of settings you can see the examples of reversal signal on the chart on the screenshot below risk bands this module is intended to provide traders with understanding when does macd histogram go beyond its average extremums, crossing extreme value zones this kind of technique to evaluate macd histogram current value is not typical for such indicators, but it usually provides a good understanding of potential price reversal opportunities, which can be of great help to any trader, which uses strategies, that require understanding of such reversal probabilities the extreme value zones for macd, which this module generates, are called risk bands, because when displayed on the chart they form distinct zones above and beyond macd histogram, which if crossed by macd histogram will display coloured diamond shaped labels the colour of these labels is determined on which risk band is crossed if 2nd upper band is crossed, bright red diamond label will be shown on the top of macd panel; if 1st upper band is crossed, dark red diamond label will be shown on the top of macd panel; if 1st lower band is crossed, dark green diamond label will be shown on the bottom of macd panel; if 2nd lower band is crossed, bright green diamond label will be shown on the bottom of macd panel risk bands themselves are calculated by our proprietary risk system, which incorporates statistical principles, such 'standard deviation', to enhance macd histogram's evaluation process and get the most accurate extreme value levels, which if crossed would show good reversal opportunities on average risk bands has two configurable parameters in its group of settings 'risk factor' and 'width factor' 'risk factor' defines how far risk bands will be from macd zero line, 'width factor' defines how "wide" internal bands will be between each other experiment with these parameters to configure risk bands for our own needs you can see reversal labels from risk bands and learn how different parameters of risk bands impact them on the chart on the screenshot below advanced visualization this module enhances options for customization of visual elements of divergences and histogram colouring scheme first, let's talk how it affect divergences important parameters for the visualization of divergences are 'colour background' — enable background colouring of the background strip on the candle, on which divergence ended colour of this background strip will be the same as the colour of its divergence to understand how it looks like see the example on the screenshot below this setting helps identifying divergences visually much faster 'show divergences lines', 'show divergences label', 'width of divergences lines' and colour options — basic customization parameters, which when combined allow trader to customize divergences appearance on the chart in the most suitable way possible some of the advanced parameters, like "show divergences from" and etc , were omitted in the list below, because there were explained in the sections far above when talking about macd's most important visual settings, we need to mention these 'colours bars with macd' — enables colouring of the main chart's price bars in the current colour of newest macd histogram value, which helps see the trend of macd histogram directly on the chart and evaluate entry opportunities with much greater ease this settings by default is on, so you can see the example of bar being coloured on any other screenshots, which we have previously already provided; 'show shadow histogram' — enables a 'shadow' version macd histogram, which makes macd look like its casts a shadow this is shadow doesn't have much of practical use — it was made purely for aesthetics reasons by default this parameter is on, but you can always turned it off in the settings whenever you want; 'histogram colour modei — defines the way of how macd histogram will be coloured and has two modes gradient and classic gradient mode chooses colours for macd histogram based histogram's value in comparison to the highest and lowest histogram values across certain bar range from the past this mode is made purely for aesthetic reasons, because it make macd look more pleasant to human eye classic mode works the same as classic macd colouring algorithm from tradingview's default macd implementation and can be described like this \ if current macd histogram (hist) is > 0 and is rising, 'histogram+ brighter colour' colour will be used; \ if hist > 0 and is falling, 'histogram+ darker colour' colour will be used; \ if hist < 0 and is rising, 'histogram brighter colour' colour will be used; \ if hist < 0 and is falling, 'histogram darker colour' colour will be used; these advanced settings, listed above, provide trader with an extensive arsenal of visualization options, which if configured correctly will improve speed of data analysis and reduce amount of visual clutter on the chart 🔔 alerts this indicator employs alerts for an event when new divergence on macd histogram or macd line occurs on the current timeframe while creating the alert below 'condition' field choose 'any alert() function call' when this alert is triggered, it will generate this kind of message // alerts for divergences on macd histogram string msg template macd hist = "exchange\ asset, timeframe regular or hidden bullish or bearish divergence on macd histogram was found at divergence end bar high or low" string msg example macd hist = "binance\ btcusdt, 15m regular bearish divergence on macd histogram was found at 170000 00" // alerts for divergences on macd line string msg template macd line = "exchange\ asset, timeframe regular or hidden bullish or bearish divergence on macd line was found at divergence end bar high or low" string msg example macd line = "binance\ btcusdt, 15m regular bearish divergence on macd line was found at 170000 00" also alerts for this indicator include alert conditions for bullish divergence of the current timeframe, bearish divergence of the current timeframe ultra buy for the current timeframe, ultra sell for the current timeframe 📌 notes while being a powerful divergence scanner, this indicator is best used as a confirmation tool in conjunction with other trading strategies, whatever they might be (smc, statistics, sentiment — doesn't really matter); the "strictness of divergences" and "pivot period" can significantly alter signal frequency and quality each trader should conduct his own experiments with these settings on historical data to find what best suits his strategy and trading style overall; traders should mtf dashboard to gain a broader market perspective a confluence of divergences across multiple timeframes usually does indicate prevailing power of the found bias; we would advise trader to not take direct trades from the divergences without proper confirmation tools, but knowing how much people skip rule, we strong suggest using high safety risk management principles when trading solely by divergences themselves we would like to point out once again, that ultra signals, reversal signals and reversal labels of risk bands should not be used as primary source of signals, because due to their nature they inherit the lag of the indicators that are built with, which is reason that such signals are mostly suitable only as confirmation for already existing signals, produced by main strategies of a particular trader; this indicator has extensive number of parameters, which filter divergences in a many different ways, and, even though default parameters of this indicator are already suitable to start applying the indicator itself, we would like each trader to experiment with all these parameters to find these, that would make most sense for his/her strategies; don't forget about broad visual customization opportunities, which can actually help you organize the indicator in the way so that you chart would be clean and easy to read cleanliness of the trading chart is an underestimated quality, so take advantage of the opportunities of the indicator to capitalize on it 🏁 afterword aqpro macd pro is designed in such a way that it transforms the standard macd into a multifaceted analysis 'powerhouse' by automating the detection of various divergence types, offering sophisticated filtering options, and integrating features like "ultra signals," reversal indicators, macd based risk bands, and an mtf dashboard, it equips traders with a future proof suite of tools, which enhance trader's opportunities even further while allowing trader to take almost full control on settings of these tools and chart's visuals this indicator will be found valuable by traders, who employ trend based strategies and who would like to enhance their analysis with new generation divergence based indicators; by traders, who search for tools with solid features packs, that would help them gather global market sentiment with little to no effort, mark local & global reversal opportunities and help organize the chart all these requirements are met in this one indicator ℹ️ if you have questions about this or any other of our indicators, please leave it in the comments