MACV Filter Chart
Top Down Analysis | Directional Bias Filter
Last updated
Top Down Analysis | Directional Bias Filter
Last updated
The AlgoBox™ MACV Chart is a custom MACD that visually shows market trends and momentum. It's a valuable tool for identifying market direction.The MACV Chart is a critical step in the Order Of Operations top-down analysis process, before analyzing the Ripple A & B charts for entry strategies.
The peaks, troughs and color zones of the MACV can assist in filtering the directional bias.
The MACV histogram also features Deviation lines which is used as part of an additional strategy called The Masher.
If the MACV histogram background is alternating red and green zones frequently, this indicates potential "chop" or a lack of trending direction.
ES: AlgoBars 6 YM: AlgoBars 7 RTY: AlgoBars 7 NQ: AlgoBars 8
"Don't Fiddle In The Middle" -Vinny E. Mini
The MACV chart with the option "Show Deviations" checked ON will display horizontal standard deviation lines above and below the zero line of the histogram. The first line above and below the zero line is called The No Fiddle Zone. The No Fiddle Zone is a natural evolution of the "Christmas Tree" pattern filtering tactic.
When price is inside the first standard deviation lines above and below the zero line on MACV histogram it is considered to be inside The No Fiddle Zone.
The No-Fiddle Zone highlight and zero line color and opacity can be customized to your desire.
When price is inside the No Fiddle Zone, traders may become more easily trapped and stopped out, as price tends to fluctuate and whipsaw in both directions. This tool turns the MACV chart into an invaluable filtering tool, not only for direction but for a "go or no-go" heuristic.
Heuristics are mental shortcuts that allow people to solve problems and make judgments quickly and efficiently.
The MACV histogram's central axis, or zero line, is referred to as "The Flat Line." It marks the neutral zone within the No-Fiddle Zone. When price is at or near the Flat Line, market sentiment is uncertain, increasing the risk of prolonged trades and potential losses in either direction.
These include color-coded entry bars shown as green and red, along with deviations and divergence markers useful for the Masher Strategy. You can also customize deviation lines as dotted, dashed, or solid. You can customize the highlight regions, known as the "No Fiddle Zone" to your preferred color. Additionally, a zero highlight indicates when the MACV is at a flatline.
This section includes both the Fast MACD and Slow MACD settings, which can be adjusted according to your preferences.
Slow MACD: is a momentum indicator that calculates the difference between a long-term and a short-term moving average, typically used to identify trends and potential reversals in price movements.
Fast MACD: tracks short-term price movements by comparing a short-term and long-term moving average, helping identify trends and potential entry or exit points.
Allows you to add a label on the chart, set the maximum bars to look back, and configure calculations based On Price Change, On Bar Close, or On Each Tick.
On Price Change: Updates the indicator only when there is a change in the instrument's price.
On Bar Change: Updates whenever a new bar closes, recalculating based on the finalized bar data to reflect the latest market conditions and changes in trends.
On Each Tick: Updates with every price change or tick in the market, providing real-time adjustments and reflecting the most current data.
Allows you to customize button colors, adjust the button placement, and modify the font and size to suit your preferences. (The Visual Settings shown are default settings which usually do not need to be changed unless specified in release notes or instructional video, livestream or on Discord etc. Auto scale is recommended to be unchecked.)
Auto Scale: Automatically adjusts the indicator’s scale to fit within the chart’s price axis, ensuring it’s properly visible without manual adjustments.
Displacement: Shifts the indicator's plot forward or backward on the time axis. This setting is useful for aligning the indicator with price bars or other chart elements, especially in cases where you want to visualize future or past data relative to the current price.
Display in Data Box: Determines whether the values are shown in the Data Box, which is an on-screen display that provides detailed information about the current values when you hover over or click on the chart.
Panel: Specifies which panel or sub-panel the indicator is displayed in on the chart. Indicators can be placed in separate panels above or below the main price chart, allowing for organized and uncluttered visualization of multiple indicators.
Price Markers: Controls the display of markers or symbols on the price axis associated with the indicator's values. This setting helps highlight specific price levels or events directly on the price chart for better visibility and analysis.
Scale Justification: Determines where the indicator is positioned on the price scale, such as to the right or left side of the chart.
Visible: Toggles the overall visibility of the indicator, allowing you to hide or show it on the chart as needed.
This option enables you to customize the colors for various elements in the MACV, including the Fast MACD rising bar, Fast MACD falling bar, Slow MACD rising bar, and Slow MACD falling bar. You can adjust these colors to be either solid or dotted based on your preferences.
All settings displayed in the settings image are the current default configurations provided by NinjaTrader and/or the AlgoBox™ Pro software, and may change at any time in future software updates without notice.
Only available on AlgoBox™ for NinjaTrader 8. Try AlgoBox™ for free today.
