Dual MACD Cross

What Is This Indicator?

This indicator is a visual tool for reading changes in market momentum.

Instead of giving buy or sell orders, it helps you see when the market’s short-term behavior starts to differ from its underlying direction. Think of it as a way to observe shifts in mood rather than make automatic decisions.

What Do the Lines Mean?

You will see three visual elements:

The thin green line represents the market’s short-term momentum.
It reacts quickly to recent price changes and shows what the market is doing right now.

The thicker white line represents the market’s reference trend.
It moves more slowly and reflects the broader, more stable direction of the market.

The yellow dotted line is the zero baseline.
It does not generate signals. Its only purpose is to help you visually judge whether momentum is generally positive (above zero) or negative (below zero).

How Should This Indicator Be Read?

The key is the relationship between the green and white lines.

When the green line is above the white line, short-term momentum is stronger than the market’s reference trend.
When the green line is below the white line, short-term momentum is weaker.

The indicator is not concerned with how high or low the lines are by themselves.
What matters is how they interact.

What Do the Triangle Markers Mean?

The small triangle markers highlight moments of transition.

An upward triangle appears when the green line crosses above the white line.
This suggests that short-term momentum is beginning to outperform the broader trend.

A downward triangle appears when the green line crosses below the white line.
This suggests that momentum is weakening relative to the broader trend.

These markers are attention points, not commands. They indicate potential change, not certainty.

Why Is the Zero Line Important?

The zero line provides context.

A crossover that happens above the zero line occurs while the market is already in a relatively strong state.
A crossover below the zero line happens in a weaker environment and may represent a failed move or an early attempt at reversal.

The same crossover can mean very different things depending on its position relative to zero.

What Is This Indicator Best Used For?

This indicator is best used to:

Observe early signs of trend changes

Compare short-term momentum versus underlying direction

Confirm what you are already seeing in price action or other indicators

It is not designed to:

Predict tops or bottoms precisely

Act as a standalone buy/sell system

Measure overbought or oversold conditions

A Simple Analogy

Imagine driving a car.

The green line is how hard you are pressing the accelerator.

The white line is your current speed.

The yellow zero line is the difference between moving forward or backward.

The triangles mark moments when acceleration begins to change the car’s actual movement.

The indicator helps you notice when effort starts to translate into direction.

The Right Way to Use It

This indicator does not tell you what to do.
It encourages you to ask better questions:

Is momentum starting to lead or lag?

Is this change supported by price structure?

Does the broader context confirm or contradict this signal?

Used this way, it becomes a tool for awareness, not prediction.

If you’d like, I can also provide:

A one-paragraph version for documentation

A training script for beginners

Or a minimal tooltip-style explanation for sharing with others