MACV Filter Chart

Top Down Analysis | Directional Bias Filter

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.

MACV chart with "Show Deviations" option checked but no other indicators above the histogram.

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.

Frequent alternating of red and green background indicates an accumulation zone. Target 1 is ideal for trades taken during in these areas.

Click here to put the AlgoBox™ No Fiddle Zone indicator on your other charts.

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Default MACV AlgoBars Settings

• ES: AlgoBars 6

• YM: AlgoBars 8

• RTY: AlgoBars 8

• NQ: AlgoBars 9

• CL: AlgoBars 7

• GC: AlgoBars 7

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The No-Fiddle Zone

"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.

To enable deviation lines which help to identify potential price reversals, navigate to the Vinnys MACV Entry System in the indicator settings. Under the Visual Settings tab, find "Show Deviations" and ensure it is checked.

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 highlighted region between the first deviation lines above and below the zero line, is known as "The No-Fiddle Zone." This region is automatically highlighted by the AlgoBox™ software.

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.

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Flat Line

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.

Here’s an example of "The Flat Line" displayed in red within the highlighted "No Fiddle Zone" region in yellow.

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Jagged On The Tape (Warning)

The MACV histogram can reveal when a potentially large move is about to happen.

Jagged On The Tape (highlighted with a blue neon circle) = A big move may potentially occur.

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Click here to learn about the Masher Strategy using the MACV histogram.

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MACV Filter Settings

The MACV Filter offers a variety of customizable settings, allowing you to adjust them according to your preferences. Default AlgoBox™ settings are shown.

1. Visual Settings

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.

2. Parameters

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.

3. Setup

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.

4. Visuals

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.

5. Plot

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.

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Video Tutorial: MACV

WATCH: Vinny E. Mini teaches the MACV chart, strategies and much more in this video tutorial.

Video Tutorial: Flat Line

WATCH: Vinny E. Mini explains The Flat Line and several tactics with it, in this short clip.

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Video Examples: Jagged On The Tape

Watch the 4:06:00 time stamped segment in the live stream below and see Vinny E. Mini trade the big move during a jagged MACV signal:

WATCH: Vinny E. Mini shows the "Jagged on the tape" warning signal that a big move is about to occur, while trading live, at the 4:06:00 time stamp.

WATCH: A short compilation of Jagged on the tape warning.

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Only available on AlgoBox™ for NinjaTrader 8. Try AlgoBox™ for free today.

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