MACD Indicator in Pine Script

The Moving Average Convergence Divergence (MACD) is a versatile momentum indicator. This guide covers all MACD implementations.

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Basic MACD

Simple MACD

//@version=6
indicator("MACD Basic", overlay=false)
 
fastLength = input.int(12, "Fast Length")
slowLength = input.int(26, "Slow Length")
signalLength = input.int(9, "Signal Length")
 
[macdLine, signalLine, histLine] = ta.macd(close, fastLength, slowLength, signalLength)
 
plot(macdLine, color=color.blue, title="MACD")
plot(signalLine, color=color.orange, title="Signal")
plot(histLine, title="Histogram", color=color.gray, style=plot.style_histogram)
hline(0)

MACD with Colors

//@version=6
indicator("MACD Color", overlay=false)
 
[macd, signal, hist] = ta.macd(close, 12, 26, 9)
 
// Color histogram based on direction
histColor = hist >= 0 ? color.green : color.red
 
plot(hist, title="Histogram", color=histColor, style=plot.style_histogram, histbase=0)
plot(macd, color=color.blue)
plot(signal, color=color.orange)
 
hline(0)

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Custom MACD Calculation

Manual MACD

//@version=6
indicator("Manual MACD", overlay=false)
 
fast = input.int(12, "Fast")
slow = input.int(26, "Slow")
signal = input.int(9, "Signal")
 
// Calculate EMAs
emaFast = ta.ema(close, fast)
emaSlow = ta.ema(close, slow)
 
// MACD Line
macdLine = emaFast - emaSlow
 
// Signal Line
signalLine = ta.ema(macdLine, signal)
 
// Histogram
histogram = macdLine - signalLine
 
// Plot
plot(macdLine, color=color.blue, title="MACD")
plot(signalLine, color=color.orange, title="Signal")
plot(histogram, title="Histogram", color=histogram >= 0 ? color.green : color.red, style=plot.style_histogram)
 
hline(0)

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MACD Crossover Signals

Basic Crossover

//@version=6
indicator("MACD Crossover", overlay=false)
 
[macd, signal, hist] = ta.macd(close, 12, 26, 9)
 
// Crossover signals
bullishCross = ta.crossover(macd, signal)
bearishCross = ta.crossunder(macd, signal)
 
// Plot
plot(macd, color=color.blue)
plot(signal, color=color.orange)
plot(hist, title="Hist", color=hist >= 0 ? color.green : color.red, style=plot.style_histogram)
 
// Signals
plotshape(bullishCross, location=location.bottom, style=shape.arrowup, color=color.lime, size=size.tiny)
plotshape(bearishCross, location=location.top, style=shape.arrowdown, color=color.red, size=size.tiny)
 
hline(0)

Crossover on Chart

//@version=6
indicator("MACD Crossover on Chart", overlay=true)
 
[macd, signal, hist] = ta.macd(close, 12, 26, 9)
 
sma20 = ta.sma(close, 20)
 
// Filter with trend
uptrend = close > sma20
macdCrossUp = ta.crossover(macd, signal)
macdCrossDown = ta.crossunder(macd, signal)
 
buySignal = macdCrossUp and uptrend
sellSignal = macdCrossDown and not uptrend
 
plot(sma20, color=color.blue)
 
plotshape(buySignal, location=location.belowbar, style=shape.labelup, color=color.green, text="MACD\nBUY")
plotshape(sellSignal, location=location.abovebar, style=shape.labeldown, color=color.red, text="MACD\nSELL")

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MACD Zero Line Cross

Zero Line Signals

//@version=6
indicator("MACD Zero Cross", overlay=false)
 
[macd, signal, hist] = ta.macd(close, 12, 26, 9)
 
// Zero line crosses
aboveZero = ta.crossover(macd, 0)
belowZero = ta.crossunder(macd, 0)
 
plot(macd, color=color.blue)
plot(signal, color=color.orange)
 
plotshape(aboveZero, location=location.bottom, style=shape.arrowup, color=color.green, text="ABOVE 0")
plotshape(belowZero, location=location.top, style=shape.arrowdown, color=color.red, text="BELOW 0")
 
hline(0)

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MACD Histogram

Histogram Only

//@version=6
indicator("MACD Histogram Only", overlay=false)
 
[macd, signal, hist] = ta.macd(close, 12, 26, 9)
 
// Gradient colors
barColor = hist > hist[1] ? color.lime : color.red
 
plot(hist, title="Histogram", color=barColor, style=plot.style_histogram, histbase=0, linewidth=2)
 
hline(0)

Histogram with Zones

//@version=6
indicator("MACD Histogram Zones", overlay=false)
 
[macd, signal, hist] = ta.macd(close, 12, 26, 9)
 
// Strong momentum (large histogram)
strongMomentum = math.abs(hist) > math.abs(hist[1]) * 1.5
 
barColor = hist >= 0 ? color.green : color.red
barColorStrong = hist >= 0 ? color.lime : color.maroon
 
plot(hist, title="Histogram", color=strongMomentum ? barColorStrong : barColor, style=plot.style_histogram, histbase=0)
 
hline(0)

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MACD Divergence

Bullish Divergence

//@version=6
indicator("MACD Bullish Divergence", overlay=true)
 
lookback = input.int(5, "Lookback")
 
[macd, signal, hist] = ta.macd(close, 12, 26, 9)
 
// Find pivot lows
priceLow = ta.pivotlow(low, lookback, lookback)
macdLow = ta.pivotlow(hist, lookback, lookback)
 
// Divergence: price lower low, MACD higher low
bullishDiv = priceLow and macdLow and low[lookback] < low[lookback * 2 + 1] and hist[lookback] > hist[lookback * 2 + 1]
 
sma20 = ta.sma(close, 20)
plot(sma20)
 
plotshape(bullishDiv, location=location.belowbar, style=shape.labelup, color=color.lime, text="BULLISH\nDIV")

Bearish Divergence

//@version=6
indicator("MACD Bearish Divergence", overlay=true)
 
lookback = 5
 
[macd, signal, hist] = ta.macd(close, 12, 26, 9)
 
// Find pivot highs
priceHigh = ta.pivothigh(high, lookback, lookback)
macdHigh = ta.pivothigh(hist, lookback, lookback)
 
// Divergence: price higher high, MACD lower high
bearishDiv = priceHigh and macdHigh and high[lookback] > high[lookback * 2 + 1] and hist[lookback] < hist[lookback * 2 + 1]
 
sma20 = ta.sma(close, 20)
plot(sma20)
 
plotshape(bearishDiv, location=location.abovebar, style=shape.labeldown, color=color.red, text="BEARISH\nDIV")

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Multi-Timeframe MACD

HTF MACD

//@version=6
indicator("Multi-Timeframe MACD", overlay=false)
 
tf = input.timeframe("D", "Timeframe")
 
[macdCurrent, signalCurrent, histCurrent] = ta.macd(close, 12, 26, 9)
 
[macdHTF, signalHTF, histHTF] = request.security(syminfo.tickerid, tf, ta.macd(close, 12, 26, 9))
 
// Current
plot(macdCurrent, color=color.blue, title="MACD")
plot(signalCurrent, color=color.orange, title="Signal")
plot(histCurrent, title="Hist", color=histCurrent >= 0 ? color.green : color.red, style=plot.style_histogram)
 
// HTF (line only)
plot(macdHTF, color=color.red, title="HTF MACD", linewidth=2)
 
hline(0)

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MACD with RSI Combo

MACD + RSI

//@version=6
indicator("MACD + RSI", overlay=false)
 
rsiLength = input.int(14, "RSI Length")
 
// MACD
[macd, signal, hist] = ta.macd(close, 12, 26, 9)
 
// RSI
rsi = ta.rsi(close, rsiLength)
 
// Combined signal: MACD cross + RSI extreme
buySignal = ta.crossover(macd, signal) and rsi < 40
sellSignal = ta.crossunder(macd, signal) and rsi > 60
 
// Plot MACD
plot(macd, color=color.blue)
plot(signal, color=color.orange)
plot(hist, title="Hist", color=hist >= 0 ? color.green : color.red, style=plot.style_histogram)
 
// Plot RSI
plot(rsi, color=color.purple, title="RSI", scale=scale.left)
 
hline(0)
 
// Signals
plotshape(buySignal, location=location.bottom, style=shape.arrowup, color=color.lime)
plotshape(sellSignal, location=location.top, style=shape.arrowdown, color=color.red)

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Complete MACD Indicator

//@version=6
indicator("Complete MACD", overlay=false)
 
// === INPUTS ===
fastLength = input.int(12, "Fast")
slowLength = input.int(26, "Slow")
signalLength = input.int(9, "Signal")
showHist = input.bool(true, "Show Histogram")
showCross = input.bool(true, "Show Crossovers")
 
// === CALCULATIONS ===
[macdLine, signalLine, histLine] = ta.macd(close, fastLength, slowLength, signalLength)
 
// === PLOTTING ===
plot(macdLine, color=color.blue, title="MACD", linewidth=2)
plot(signalLine, color=color.orange, title="Signal", linewidth=2)
 
if showHist
    histColor = histLine >= 0 ? color.green : color.red
    plot(histLine, title="Histogram", color=histColor, style=plot.style_histogram, histbase=0)
 
hline(0)
 
// === SIGNALS ===
if showCross
    bullishCross = ta.crossover(macdLine, signalLine)
    bearishCross = ta.crossunder(macdLine, signalLine)
 
    plotshape(bullishCross, location=location.bottom, style=shape.arrowup, color=color.lime, size=size.tiny)
    plotshape(bearishCross, location=location.top, style=shape.arrowdown, color=color.red, size=size.tiny)

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MACD Strategies

Basic MACD Strategy

//@version=6
strategy("MACD Strategy")
 
[macd, signal, hist] = ta.macd(close, 12, 26, 9)
 
// Long entry
if ta.crossover(macd, signal)
    strategy.entry("MACD Long", strategy.long)
 
// Short entry
if ta.crossunder(macd, signal)
    strategy.entry("MACD Short", strategy.short)
 
// Exit on reverse cross
if ta.crossunder(macd, signal)
    strategy.close("MACD Long")
 
if ta.crossover(macd, signal)
    strategy.close("MACD Short")
 
plot(macd)
plot(signal)
hline(0)

MACD with Stop Loss

//@version=6
strategy("MACD with SL", overlay=true)
 
[macd, signal, hist] = ta.macd(close, 12, 26, 9)
 
// ATR for stop
atr = ta.atr(14)
 
// Entry
if ta.crossover(macd, signal)
    strategy.entry("MACD Long", strategy.long)
    strategy.exit("SL", stop=strategy.position_avg_price - atr * 2, limit=strategy.position_avg_price + atr * 3)
 
if ta.crossunder(macd, signal)
    strategy.entry("MACD Short", strategy.short)
    strategy.exit("SL", stop=strategy.position_avg_price + atr * 2, limit=strategy.position_avg_price - atr * 3)
 
plot(ta.sma(close, 20))

MACD + MA Filter

//@version=6
strategy("MACD + MA Filter")
 
[macd, signal, hist] = ta.macd(close, 12, 26, 9)
sma200 = ta.sma(close, 200)
 
// Trend filter
uptrend = close > sma200
downtrend = close < sma200
 
// Entries with trend filter
if uptrend and ta.crossover(macd, signal)
    strategy.entry("MACD Long", strategy.long)
 
if downtrend and ta.crossunder(macd, signal)
    strategy.entry("MACD Short", strategy.short)
 
// Exit
if ta.crossunder(macd, signal)
    strategy.close_all()
 
plot(sma200)

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MACD Reference

Component	Formula	Description
MACD Line	EMA(12) - EMA(26)	Fast - Slow EMA
Signal Line	EMA(9) of MACD	Smoothed MACD
Histogram	MACD - Signal	Momentum
Positive	MACD > Signal	Bullish
Negative	MACD < Signal	Bearish

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Next Steps

• bollinger-bands - Learn Bollinger Bands
• atr - Learn ATR
• basics - Build strategies

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MACD is a powerful indicator for identifying trend changes and momentum.