MACDV MTF V3.0 - Improved

How the Overall Signal Works:
1. Individual Indicator Scoring (per timeframe)
Each indicator is scored from -1 (bearish) to +1 (bullish):

MA Momentum: 30% (was 35%)
ADX/DI: 23% (was 25%) - improved logic
MACDV: 20% (was 25%)
RSI: 12% (was 15%)
Bollinger Bands: 10% (NEW)
Volume: 5% (NEW)

2. Multi-Timeframe Aggregation
Each timeframe gets a different weight:

Lower timeframes (1m, 3m, 5m): 2-4% weight
Mid timeframes (15m-1H): 6-10% weight
Higher timeframes (2H-4H, Daily): 12-14% weight
Very high (Weekly, Monthly): 10% weight

Higher timeframes carry more weight because they represent stronger, more reliable trends.
3. Signal Output

Score Range: -1.0 (extreme bearish) to +1.0 (extreme bullish)
Signal Labels:

STRONG BUY (>0.4)
BUY (>0.2)
WEAK BUY (>0.05)
NEUTRAL (-0.05 to 0.05)
WEAK SELL (<-0.05)
SELL (<-0.2)
STRONG SELL (<-0.4)


Confidence %: Shows how strong the signal is

4. Visual Display

Table Row: Shows the overall signal prominently at the bottom
Chart Plot: Signal score plotted with reference lines for each zone
Color Coded: Green for bullish, red for bearish, gray for neutral

Signal Logic Philosophy:
The system is designed to be conservative - it requires agreement across multiple timeframes and indicators before giving strong signals. This reduces false signals but may mean fewer total signals.
The weighting favors:

Long-term trend (MA momentum - 35%)
Trend strength (ADX/DI - 25%)
Short-term momentum (MACDV - 25%)
Momentum confirmation (RSI - 15%)

You can adjust the weights in the scoreIndicator() function to match your trading style!

ADX Values:

70+: "Very Strong Trend"
50-70: "Strong Trend"
40-50: "Trending"
25-40: "Emerging Trend"
20-25: "Weak Trend"
<20: "No Trend/Ranging"


ADX/DI Relationship (now correctly shows):

"Strong Uptrend" - DI+ dominates above ADX
"Strong Downtrend" - DI- dominates above ADX
"Weak Uptrend/Downtrend" - Direction clear but weak
"Choppy Trend" - Both DI lines above ADX (indecision)
"Ranging Market" - ADX below 25

Added Bollinger Bands 📊
What it shows:

Position of price within the bands (0-100%)
Identifies overbought/oversold extremes
Helps spot potential reversals

Status Labels:

Ext. Overbought (>95%)
Overbought (>80%)
Upper/Mid/Lower Range
Oversold (<20%)
Ext. Oversold (<5%)

How it helps:

When price is at extremes (>95% or <5%), expect mean reversion
Complements RSI for better entry/exit timing
10% weight in overall signal

Added Volume Analysis 📈
What it shows:

Current volume vs 20-period average
Confirms or questions the strength of moves

Status Labels:

Very High (>2.0x average)
High (>1.5x)
Above/Below Average
Low (<0.5x)

How it helps:

High volume + bullish indicators = strong confidence
Low volume + signals = weak/questionable moves
5% weight in overall signal (confirmation role)

How to Use the Enhanced Indicator
Reading the Overall Signal:

Check the bottom row - Shows: Signal | Score | Confidence%
Look at higher timeframes first (Daily, 4H, 1H) - they carry more weight
Confirm with volume - Strong signals need volume confirmation
Check BB position - Avoid buying at extremes unless oversold bounce

Best Signal Combinations:
Strong Buy Setup:

Overall Signal: BUY or STRONG BUY
Multiple timeframes: Phase I or II momentum
ADX: Emerging or Strong Trend (>25)
ADX/DI: Strong Uptrend
Volume: Above Average or High
BB: Oversold or Lower Range
MACDV: Rallying or Rebounding

Strong Sell Setup:

Overall Signal: SELL or STRONG SELL
Multiple timeframes: Phase III, IV, or V
ADX: Strong Trend with DI- dominant
Volume: High (confirming the move down)
BB: Overbought or Upper Range
MACDV: Retracing or Reversing

Neutral/Wait:

Mixed timeframe signals
Low volume across timeframes
ADX: Ranging Market
BB: Mid Range
MACDV: Ranging


⚠️ Important Trading Notes:

No indicator is perfect - Use this with price action, support/resistance, and risk management
Higher timeframes matter more - A Daily bearish signal overrides a 5min bullish signal
Volume confirms everything - Low volume signals are suspect
BB extremes can persist - Overbought can become more overbought in strong trends
Always use stop losses - Even "STRONG BUY" signals can fail

The indicator is now significantly more robust with better ADX interpretation, volume confirmation, and mean reversion detection via Bollinger Bands!