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Free: Volatility Normalized MACD-V

Awhile back I had a trader email requesting I code this indicator for Thinkorswim. At the time I wasn’t able to get to it, and I’ve subsequently lost the email, so I thought I would put this out there in the universe in case he happens to run across it here, and in case anyone else can use it.

Easycators Volatility Normalized MACD-V implementation:

And here’s the research paper with the details:

“The output of the indicator is
the amount of momentum a security has,
that is in excess of its average volatility,
expressed as a percentage.
We are measuring directional strength,
“purified” from volatility fluctuations”

Alex Spiroglou
Traditional MACD vs. Volatility Normalized MACD-V for Thinkorswim