Theory :

MACD is, by definition calculated as a difference of fast and slow EMA (Exponential Moving Average). This versions allows you to :

  • use one of the 4 basic types of averages for calculation :

  • simple moving average

  • exponential moving average

  • smoothed moving average

  • linear weighted moving average

  • it is normalizing those macd values to -1 to +1 range

Usage :

You cans use color changes as signals