MACD Breakout SW

Probability emerges to record higher prices when MACD breaks out oscillator historical resistance level. It's strongly encouraged to confirm price breakout with oscillator breakout since they have comparable effects to price breaking support and resistance levels; surely, short trades will have the same perception.

As advantage, many times oscillator breakout precedes price breakout as early alert to upcoming event as illustrated by 2nd & 3rd screenshot. Furthermore, divergence is confirmed in case of absence of continuation signal prior to highest high or lowest low and reversal signal is encountered.

Concept is based on find swing levels which based on number of bars by each side of peak or trough - as mentioned by first screenshot - and in turn subjected to change by indicator settings "swing backstep".

Indicator signals are shown only on separated window; however, in case of desire to have signals displayed on chart window, pertained indicator could be found at https://www.mql5.com/en/market/product/120481/

Indicator recommended to be used coinciding with other indicators for price support and resistance, supply & demand zones, and/or trend indicator/s

Having desire to use the indicator in your EA, consider buffer no 3 for long trades, and buffer no 4 for short trades

indicator setting:

• Backward number of Bars : No of backward bars in demand to analyse by indicator
• Swing Backstep (min no of bars) : minimum no of bars to form peak or trough by each side
• MACD Fast Period : MACD fast EMA period
• MACD Slow Period : MACD slow EMA period
• MACD Signal Period : MACD signal SMA period
• MACD Applied Price : Applied price for EMA calculation
• Show only early breakout signals : Only display oscillator breakouts when occurs with delay of price breakout (if required).
• Breakout Signal Gap :  controls the distance between signal arrow and bar wick

Note:

No indicator will guarantee 100% of winning trades, but trader shall backtest for optimized setting in conjunction with other indicators