LUX MACD PRICE FORECAST Trading Guide
The MACD Price Forecasting indicator is an advanced tool that utilizes historical price behavior and momentum states to probabilistically project future price paths and potential trajectory bounds.
What does the indicator show?
- Forecast Cone: Shaded bands extending into the future displaying the upper (bullish), middle (average), and lower (bearish) probable price trajectories based on historical volatility.
- Signal Areas: Colored background highlights identifying the specific candles where the momentum shift triggered a new forecast calculation.
- Reference Price Line: A static horizontal line marking the exact price at the moment the current trend or forecast was initiated.
Key Settings
- MACD Parameters: Fast, Slow, and Signal lengths defining the internal momentum baseline that triggers the forecasts.
- Maximum Memory & Forecasting Length: Controls how many historical samples to hold and how many bars into the future the projection should extend.
- Percentile Bounds: Determines the statistical width of the cone (e.g., extracting the Top 80th and Bottom 20th percentiles of historical moves).
- Advanced Filters (ATR, Momentum, QQE): Strict conditions forcing the indicator to compare the current setup only to past setups that had identical volatility and momentum signatures.
How to use Strategy Parameters (Condition Source)
Within the Strategy Tester module, you can leverage the data from this indicator to create powerful logical conditions for trade entries and exits.
1. Forecast Triggers & Trend States
Discrete moments indicating that market momentum has shifted and a new projection path has been calculated.
forecastUpdated— Fires exactly when a new forecast cone is generated.uptrendStart/downtrendStart— Marks the absolute beginning of the internal MACD directional shift.
Strategy Example: You can execute a trade to ride the new momentum accurately by entering a Long position when uptrendStart is true.
2. Projected Price Targets
Specific future price points generated by the AI's probability cone, useful for take-profits.
forecastUpperPrice— The projected optimistic target based on historical performance.forecastMidPrice— The statistically average expected destination price.forecastLowerPrice— The pessimistic bound of the projection.
Strategy Example: Open a Long position on a breakout and dynamically set your Take Profit logic to execute a Limit Order at the forecastUpperPrice.
3. Relative Percentage Targets
The percent-based expected movement, making it robust across different timeframes.
forecastUpperPct/forecastMidPct/forecastLowerPct— The percentage expected move toward the respective bounds.
Strategy Example: Only accept forecastUpdated buy signals if forecastMidPct > 2.0, avoiding low-return setups in choppy markets.