MACD v

MACD v

? MACD-V — Volatility-Normalized Momentum Indicator

Inspired by award-winning quantitative trader Alex Spiroglou,
the MACD-V is a powerful evolution of the classic MACD — delivering a volatility-normalized momentum framework that produces consistent, actionable signals across all securities and timeframes.

While the traditional MACD measures the difference between two EMAs, the MACD-V goes a step further by dividing this difference by the market’s volatility (ATR).
This normalization makes the indicator:

• ✅ Comparable across timeframes

• ✅ Comparable across instruments and markets

• ✅ Objective — with universal overbought and oversold levels

• ✅ More precise in signal timing and accuracy

⚙️ Formula

This creates a volatility-adjusted momentum value expressed as a percentage, allowing traders to interpret strength and exhaustion with greater clarity.

? Momentum Lifecycle Roadmap

• Avoid signals in ranging conditions where whipsaws dominate.

• Anticipate timing challenges near overbought/oversold levels.

• Focus on high-probability setups in strong momentum conditions.

? Range-Regime Rules (with 200 EMA)

Bullish Regime

• Price above 200 EMA

• Overbought readings: > +150

• Buying opportunities: between -50 and -150

• Rare, deep buying zones: < -100

Bearish Regime

• Price below 200 EMA

• Oversold readings: < -150

• Selling opportunities: between +50 and +150

• Rare selling zones: > +100

⚡ Spiroglou’s Simple Momentum System (DAX Futures 1991–2021)

System Rules:

• Enter long when MACD-V > +70 (strong upward momentum)

• Exit at +2.85% Take Profit, or after 15 days if still profitable

• Maximum holding period: 77 days

Results:

• 201 profitable trades over 30 years

• 77.23% hit their take-profit target

• Consistent performance across multiple market cycles

? MACD-V Histogram (MACD-VH)

A volatility-normalized histogram providing short-term momentum readings with extreme levels at +40 and -40.
Unlike the classic MACD histogram that compares relative bar heights, MACD-VH delivers absolute, normalized levels that are universally interpretable.

? Key Benefits

• ? Universal Momentum Levels — eliminates guesswork and subjectivity

• ? Reliable Backtesting — consistent values across timeframes and assets

• ? Cross-Market Application — works equally well on Forex, Stocks, Crypto, and Indices

• ? Objective Risk Management — range rules guide position sizing, stop placement, and profit targets

• ? Systematic Trading Framework — transforms subjective MACD interpretation into a quantified, repeatable strategy

⚠️ Usage Notes

• Works best on H1 and higher timeframes.

• Avoid low-volatility periods where ATR normalization may exaggerate readings.

• Combine with price structure and trend confirmation tools for optimal accuracy.