Moving Average Spread

The percentage spread between two moving averages displayed with multiple colors. This is of course basically MACD but in practice better in my view because of the alternative approach to coloring the results.

Your typical 4 color MACD script on here works in the manner where if the previous bar close is higher or lower than the current bar close, the color is changed. Due to the nature of how price fluctuates, in my experience this makes finding a good signal into and out of a trend from MACD more difficult.

Instead, the spread percentage here is colored incrementally in steps as the spread between the two MA's widens or closes.

The above example hopefully illustrates the difference. Typically with this you can more clearly see the smooth transition between trends a lot quicker.

There are several MA's to choose from, the ability to choose an alternative symbol, an anchor time period, bar colors, and two sets of colors (7 or 16).

You'll want to play around with the different MA types, timeframes, and lengths to get your desired results but it can be illuminating.

For example, using a fast "zero lag moving average" along with a regular EMA that both have identical lengths can lead to nicely granular results.

This is easily the most useful thing I've put together for myself on here so hopefully it helps some others out there as well.