Multiple Timeframe MACD Indicator
The Multiple Timeframe MACD indicator for ThinkOrSwim allows you to plot the classic moving average convergence / divergence indicator from a higher time frame chart onto a lower time frame chart. So if you take entries and trade on a 5 minute chart, but would like to reduce the false entries and noise from normal MACD signals, you can keep your chart on a 5 minute timeframe but add a 30 minute or 15 minute MACD below your chart to take your trade signals from.
What You Get
- The Multiple Timeframe MACD Indicator / lower (subgraph) study with optional built-in crossover alerts.
- The Multiple Time Frame MACD Histogram crossover scanner preset with customizable filters ready to use.
- Simply choose a timeframe and hit scan.
- Alternately you can also adjust the price range and average daily volume presets as well, or remove them if unneeded.
- The lower study includes the ability to plot entry signals for long and short trades as visual cues.
- Customize the associated Moving Average type (simple, exponential, etc.) and MA length.
- All colors and styles are completely customizable.
What Is MACD?
The MACD, or moving average convergence divergence indicator, was invented by Gerald Appel in the 1970s and was later improved by Thomas Aspray in 1986 with the addition of the histogram as a way to anticipate crossovers. The attached chart courtesy of Wikipedia shows an example of the Nasdaq with the default MACD settings of 12, 26, and 9. The blue line is the MACD, or the difference between the 12-day and 26-day EMAs of price. The red line is the signal line, a 9-day EMA of the MACD series itself. The histogram shows the divergence between the MACD and the signal line.
How to Install
- It’s easy! We email you the ThinkOrSwim install links immediately upon check out (and they’ll also be saved in your order history on the site for future reference). Simply click each link and confirm on the next page, and the script will be imported to your system automatically. Optionally, you can also copy/paste each link directly into ThinkOrSwim by clicking the Setup menu at the top right corner of the platform and selecting “Open shared item” and then pasting in each link there.
- Once you’ve clicked or pasted in each link, then you just go activate the thinkscript like you would any other indicator:
- To add an indicator or study to your chart, go to Charts > Studies > Edit Studies, and find the indicator in the alphabetical list, and double-click to add it to your chart.
- To open a strategy, go to Charts > Studies > Edit Studies, and then select “Strategies” tab at the top left of the window. Find the strategy in the alphabetical list, and double-click to add it to your chart.
- To open a scan, go into Stock Hacker and from the menu on the right hand side, select Load Scan Query and choose the scan from the alphabetical list. Then click scan.
- To open a column, right-click the column header and select Customize, then find the column from the alphabetical list of available columns, and double click to add it. Then click OK.
- To customize the settings, just go to Studies > Edit Studies and click the gear icon to the right of the thinkscript. Each study, indicator, or strategy comes with default settings already applied and includes tooltips and hints to help explain what each setting does so you’ll be able to customize it easily. Just click the “(?)” icon next to the setting for a popup explanation.
Note that due to how TOS plots the first 1 hour bar of the day on equities, hourly equities charts without extended hours showing may make the indicator look choppy. Just turn on extended hours in that case and it displays fine, or switch to a different timeframe.
We’re always happy to answer questions, and full email support is provided with every purchase! We’ll make sure you get up and running. If you have questions, email us here or leave a comment!
Example Screenshots of the MTF MACD