MACD BB Lines

The MACD BB Lines indicator is built from a standard MACD indicator with Bollinger Bands added to the signal line. The MACD values are shown as dots. During an uptrend the MACD dots will print above the upper Bollinger Band. Accordingly, MACD dots print below the lower Bollinger Band for a downtrend.

Indicator Description

 

The MACD BB Lines indicator allows for identifying four trend states:

  • MACD rising and above upper Bollinger Band (uptrend)
  • MACD rising and below upper Bollinger Band (neutral)
  • MACD falling and below lower Bollinger Band (downtrend)
  • MACD falling and above lower Bollinger Band (neutral)

The four trend states are shown via the color of the MACD dots. The trend is exposed as a public property and can be accessed via a strategy or another indicator.

A bullish trend is more likely to persist when it starts near or slightly above the MACD zeroline. A bearish trend is more likely to persist when it starts near or slightly below the MACD zeroline.

The indicator comes with paint bars, visual and sound alerts. The alerts allow for detecting breakouts from the Bollinger Bands and zeroline crosses.