Hey fellow traders! Today, we're diving into the XMACD indicator for MetaTrader 5. This nifty tool is an upgraded version of the classic MACD, giving you flexibility with histogram and signal line smoothing algorithms. You’ve got a choice of ten different smoothing options, so let’s break them down:
- SMA - Simple Moving Average;
- EMA - Exponential Moving Average;
- SMMA - Smoothed Moving Average;
- LWMA - Linear Weighted Moving Average;
- JJMA - JMA Adaptive Average;
- JurX - Ultralinear Smoothing;
- ParMA - Parabolic Smoothing;
- T3 - Tillson's Multiple Exponential Smoothing;
- VIDYA - Smoothing with Tushar Chande's Algorithm;
- AMA - Smoothing with Perry Kaufman's Algorithm.
A little heads-up—the Phase1 and Phase2 parameters can mean different things depending on the smoothing algorithm you choose. For instance, with JMA, the Phase variable ranges from -100 to +100. In contrast, for T3, it’s a smoothing ratio times 100, while VIDYA uses a CMO oscillator period and AMA works with a slow EMA period. So, make sure you're clear on how these parameters affect your chosen algorithm. For AMA, the fast EMA is fixed at 2, and the power ratio is also set to 2.
Another cool feature of this indicator is that the histogram and signal line colors change based on market conditions. Plus, the ColorXMACD_Alert indicator can notify you if the signal line color shifts on the latest closed bar. Just remember to copy the SmoothAlgorithms.mqh library classes to your terminal_data_folder\MQL5\Include directory for it to work seamlessly. You can find a detailed explanation of these classes in the article "Averaging Price Series for Intermediate Calculations Without Using Additional Buffers".
This indicator was initially created in MQL4 and discussed in an earlier article titled "Effective Averaging Algorithms with Minimal Lag: Use in Indicators and Expert Advisors" back on March 3, 2009.
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