Logarithmic (or not) MACD
This indicator let's you choose between a logarithmic MACD and a regular one.
The difference between a regular and logarithmic MACD is often very little, but having the ability to choose is nice!
For those who don't know a regular MACD calculates it signal and MACD lines using EMAs on nominal change ($ change).
On the other hand by calculating the log of those nominal change we end up charting not the $ change, but the % change.
I'll give you a little example:
On the left is the normal MACD and on the right the LMACD
We can clearly see on the LMACD that the indicator is following a trend of lower highs while on the normal MACD such trend is less clear.
I could clearly find examples of the opposite. In the end, with this script you get to choose which one you'll use and in which scenarios.
Hope you enjoy!
The difference between a regular and logarithmic MACD is often very little, but having the ability to choose is nice!
For those who don't know a regular MACD calculates it signal and MACD lines using EMAs on nominal change ($ change).
On the other hand by calculating the log of those nominal change we end up charting not the $ change, but the % change.
I'll give you a little example:
On the left is the normal MACD and on the right the LMACD
We can clearly see on the LMACD that the indicator is following a trend of lower highs while on the normal MACD such trend is less clear.
I could clearly find examples of the opposite. In the end, with this script you get to choose which one you'll use and in which scenarios.
Hope you enjoy!