VELOCITY MACD Trading Guide

The Velocity MACD is a quantitative technical analysis tool. Velocity MACD Indicator A low-lag, MACD-style oscillator based on normalized price velocity. It's designed for faster trend detection compared to a traditional MACD.

What does the indicator show?

• Market Structure & Momentum: Visualizes prevailing trend directions and key reversal zones.
• BUY / SELL Signals: Highlights confirmed entry and exit opportunities based on quantitative rules.
• Dynamic Boundaries: Provides adaptive levels for managing trade risk and reward expectations.

Key Settings

• Velocity Period (velocityPeriod): Controls the calculation period and sensitivity for market detection.
• Smoothing Period (smoothingPeriod): Controls the calculation period and sensitivity for market detection.
• Volatility Period (volatilityPeriod): Controls the calculation period and sensitivity for market detection.
• Signal Line Period (signalPeriod): Controls the calculation period and sensitivity for market detection.
• Hist Up Rising (histUpRising): Controls the calculation period and sensitivity for market detection.
• Hist Up Falling (histUpFalling): Controls the calculation period and sensitivity for market detection.
• Hist Down Falling (histDownFalling): Controls the calculation period and sensitivity for market detection.
• Hist Down Rising (histDownRising): Controls the calculation period and sensitivity for market detection.
• Velocity Line (velocity): Controls the calculation period and sensitivity for market detection.
• Signal Line (signal): Controls the calculation period and sensitivity for market detection.
• Zero Line (zero): Controls the calculation period and sensitivity for market detection.
• Histogram Raw (histogram): Controls the calculation period and sensitivity for market detection.
• Cross Up (crossUp): Controls the calculation period and sensitivity for market detection.
• Cross Down (crossDown): Controls the calculation period and sensitivity for market detection.
• Velocity Line (velocity): Controls the calculation period and sensitivity for market detection.
• Signal Line (signal): Controls the calculation period and sensitivity for market detection.
• Histogram (histogram): Controls the calculation period and sensitivity for market detection.
• Velocity Crosses Above Signal (crossUp): Controls the calculation period and sensitivity for market detection.
• Velocity Crosses Below Signal (crossDown): Controls the calculation period and sensitivity for market detection.

How to use Strategy Parameters (Condition Source)

Within the Strategy Tester module, this indicator can be used both as a direct signal source and as a market-state filter.

1. Signal Events

• crossUp - Velocity Crosses Above Signal event signal.
• crossDown - Velocity Crosses Below Signal event signal.

2. Filters and Trade Levels

• velocityPeriod - Velocity Period value used for structural qualification or thresholds.
• smoothingPeriod - Smoothing Period value used for structural qualification or thresholds.
• volatilityPeriod - Volatility Period value used for structural qualification or thresholds.
• signalPeriod - Signal Line Period value used for structural qualification or thresholds.
• histUpRising - Hist Up Rising value used for structural qualification or thresholds.
• histUpFalling - Hist Up Falling value used for structural qualification or thresholds.
• histDownFalling - Hist Down Falling value used for structural qualification or thresholds.
• histDownRising - Hist Down Rising value used for structural qualification or thresholds.
• velocity - Velocity Line value used for structural qualification or thresholds.
• signal - Signal Line value used for structural qualification or thresholds.
• zero - Zero Line value used for structural qualification or thresholds.
• histogram - Histogram Raw value used for structural qualification or thresholds.
• crossUp - Cross Up value used for structural qualification or thresholds.
• crossDown - Cross Down value used for structural qualification or thresholds.
• velocity - Velocity Line value used for structural qualification or thresholds.
• signal - Signal Line value used for structural qualification or thresholds.
• histogram - Histogram value used for structural qualification or thresholds.

Strategy Example: Enter Long when buySignal is true and trendFilter == 1, ensuring trades align with dominant momentum.