Price Action Candles with MACD Signals Strategy

// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © goodgains


//@version=5
strategy("Price Action Candles with MACD Signals Strategy", overlay = true)

// @keywords: price-action-candles, macd-strategy, swing-structure, mtf-ema-filter, macd-crossover, strategy-entries, strategy-exits, price-action-signals, swing-high-low, heikin-ashi, structure-breaks, multi-timeframe, entry-exit-rules, candle-patterns, trend-filter, overlay-strategy, confirmed-signals, ema-stack, swing-detection, macd-histogram

// ma settings
ma_length1  = 50
ma_type1    = 'EMA'
ma_tf1      = '15'

ma_length2  = 50
ma_type2    = 'EMA'
ma_tf2      = '60'


// macd settings
swing_length_compare = 10
macd_source = close
macd_fast   = 12 
macd_slow   = 26
macd_signal = 9



// error catching
if timeframe.in_seconds() > timeframe.in_seconds(ma_tf1)
    runtime.error("The max timeframe allowed is 15 minutes.")







// functions
f_ma_calculation(ma_length, ma_type) =>
    float ma_value = switch ma_type
        "EMA" => ta.ema(close[1], ma_length)
        "SMA" => ta.sma(close[1], ma_length)
        "RMA" => ta.rma(close[1], ma_length)
        "HMA" => ta.hma(close[1], ma_length)
        => ta.sma(close[1], ma_length) 


f_get_swing_values(sd_length) =>


    // price action
    sh = ta.pivothigh(high, sd_length, sd_length)
    sl = ta.pivotlow(low, sd_length, sd_length)

    csh = ta.valuewhen(ta.pivothigh(high, sd_length, sd_length), high[sd_length], 0)
    csl = ta.valuewhen(ta.pivotlow(low, sd_length, sd_length), low[sd_length], 0)

    psh = ta.valuewhen(ta.pivothigh(high, sd_length, sd_length), high[sd_length], 1)
    psl = ta.valuewhen(ta.pivotlow(low, sd_length, sd_length), low[sd_length], 1)

    hh = sh >= psh
    lh = sh < psh
    ll = sl <= psl
    hl = sl > psl

    var int trend = na
    trend := ((hh and high >= psh) or close > csh) ? 1 : ((ll and low <= psl) or close < csl) ? -1 : lh or hl ? 0 : trend[1]

    var int last_signal = na
    last_signal := hh ? 2 : lh ? -1 : ll ? -2 : hl ? 1 : last_signal[1]


    // macd
    [macdLine, signalLine, histLine] = ta.macd(macd_source, macd_fast, macd_slow, macd_signal)

    macd_csh = ta.valuewhen(ta.pivothigh(high, sd_length, sd_length), macdLine[sd_length], 0)
    macd_csl = ta.valuewhen(ta.pivotlow(low, sd_length, sd_length), macdLine[sd_length], 0)

    macd_psh = ta.valuewhen(ta.pivothigh(high, sd_length, sd_length), macdLine[sd_length], 1)
    macd_psl = ta.valuewhen(ta.pivotlow(low, sd_length, sd_length), macdLine[sd_length], 1)

    macd_hh = macd_csh >= macd_psh
    macd_lh = macd_csh < macd_psh
    macd_ll = macd_csl <= macd_psl
    macd_hl = macd_csl > macd_psl

    var int macd_trend = na
    macd_trend := ((macd_hh and macdLine >= macd_psh) or macdLine > macd_csh) ? 1 
     : ((macd_ll and macdLine <= macd_psl) or macdLine < macd_csl) ? -1 
     : macd_lh or macd_hl ? 0 : macd_trend[1]

    var int macd_last_signal = na
    macd_last_signal := macd_hh ? 2 : macd_lh ? -1 : macd_ll ? -2 : macd_hl ? 1 : macd_last_signal[1]

    [sh, sl, psh, psl, csh, csl, hh, lh, ll, hl, trend, last_signal,
     macd_psh, macd_psl, macd_csh, macd_csl, macd_hh, macd_lh, macd_ll, macd_hl, macd_trend, macd_last_signal]



// ma calculations
ma_value1 = request.security(syminfo.tickerid, ma_tf1, f_ma_calculation(ma_length1, ma_type1), lookahead = barmerge.lookahead_on)
ma_value2 = request.security(syminfo.tickerid, ma_tf2, f_ma_calculation(ma_length2, ma_type2), lookahead = barmerge.lookahead_on)

ma_bull = ma_value1 >= ma_value2
ma_bear = ma_value1 < ma_value2

p_ma1 = plot(ma_value1, title = 'MA 1', color = ma_bull ? color.new(color.teal,40) : ma_bear ? color.new(color.red, 40) : na, editable = false)
p_ma2 = plot(ma_value2, title = 'MA 2', color = ma_bull ? color.new(color.teal,40) : ma_bear ? color.new(color.red, 40) : na, editable = false)

fill(p_ma1, p_ma2, color = ma_bull ? color.new(color.teal,90) : ma_bear ? color.new(color.red, 90) : na, editable = false)


// macd calculations
[macdLine, signalLine, histLine] = ta.macd(macd_source, macd_fast, macd_slow, macd_signal)


// macd logic with price action to find divergence
[sh, sl, psh, psl, csh, csl, hh, lh, ll, hl, trend, last_ts,
 macd_psh, macd_psl, macd_csh, macd_csl, macd_hh, macd_lh, macd_ll, macd_hl, macd_trend, macd_last_signal] = f_get_swing_values(swing_length_compare)

// barcolor(trend == 1 ? color.lime
//  : trend == -1 ? color.rgb(255, 0, 0)
//  : color.yellow)

// bgcolor(macd_trend == 1 ? color.new(color.lime,90)
//  : macd_trend == -1 ? color.new(color.rgb(255, 0, 0),90)
//  : color.new(color.yellow, 90))


var bool macd_divergence_bull = na
var bool macd_divergence_bear = na

pa_color = color.white
f_sh_sl_labels(sh, sl, hh, lh, ll, hl) =>

    var string label_text = na
    if sh
        if hh
            label_text := 'HH'
        else
            label_text := 'LH'
        label.new(bar_index[swing_length_compare], high[swing_length_compare], text = label_text, style=label.style_label_down,
         textcolor = pa_color, color = color.new(pa_color, 100), size = size.tiny, tooltip = label_text)
    
    else if sl
        if hl
            label_text := 'HL'
        else
            label_text := 'LL'
        label.new(bar_index[swing_length_compare], low[swing_length_compare], text = label_text, style=label.style_label_up,
         textcolor = pa_color, color = color.new(pa_color, 100), size = size.tiny, tooltip = label_text)
// f_sh_sl_labels(sh, sl, hh, lh, ll, hl)


macd_divergence_bull := (macd_trend == 1 and trend == -1) and macdLine < 0
macd_divergence_bear := (macd_trend == -1 and trend == 1) and macdLine > 0

signal_wait = 3
var int bars_since_bull_div = 0
var int bars_since_bear_div = 0
bars_since_bull_div := macd_divergence_bull ? 0 : bars_since_bull_div[1] + 1
bars_since_bear_div := macd_divergence_bear ? 0 : bars_since_bear_div[1] + 1

macd_buy = bars_since_bull_div <= signal_wait and ta.crossover(histLine,0)
macd_sell = bars_since_bear_div <= signal_wait and ta.crossunder(histLine,0)

// bgcolor(bars_since_bull_div <= signal_wait ? color.new(color.green, 85)
//  : bars_since_bear_div <= signal_wait  ? color.new(color.red, 85)
//  : na)
// bgcolor(trend == 1 ? color.new(color.lime, 85)
//  : trend == -1 ? color.new(color.rgb(255, 0, 0),85)
//  : color.new(color.yellow, 70))


// generate signals
var bool in_trade = false
var int trade_side = 0
var int last_trade = na

var float target = 99999999.99
var float stop = 0.000000
var float entry_price = 0.00

var bool long_entry = false
var bool short_entry = false

var bool tgt_hit = false
var bool stop_hit = false

var bool long_exit = false
var bool short_exit = false


long_entry := ma_bull and macd_buy and trade_side[1] <= 0 and barstate.isconfirmed
short_entry := ma_bear and macd_sell and trade_side[1] >= 0 and barstate.isconfirmed


// define position
entry_price := long_entry[1] or short_entry[1] ? open :  in_trade == true ? entry_price[1] : na
trade_side := long_entry[1] ? 1 : short_entry[1] ? -1 : in_trade == false ? 0 : trade_side[1]
last_trade := (trade_side != 0 and trade_side != trade_side[1]) ? trade_side : last_trade[1]


// define targets and stops
var float stop_distance = 0.00
var float calc_shortstop = 0.00
var float calc_longstop = 0.00

calc_shortstop := math.max(csh, ta.highest(high, swing_length_compare))
calc_longstop := math.min(csl, ta.lowest(low, swing_length_compare))

stop_distance := long_entry[1] ? math.abs(open - calc_longstop)
 : short_entry ? math.abs(open-calc_shortstop)
 : stop_distance[1]

target := trade_side == 1 ? (entry_price + (stop_distance * 2.00))
 : trade_side == -1 ? (entry_price - (stop_distance * 2.00))
 : na

stop := long_entry[1] ? calc_longstop
 : short_entry[1] ? calc_shortstop
 : trade_side != 0 ? stop[1]
 : na

tgt_hit := trade_side == 1 and high >= target or trade_side == -1 and low <= target
stop_hit := trade_side == 1 and low <= stop or trade_side == -1 and high >= stop

long_exit := (tgt_hit or stop_hit) and in_trade[1] == true and trade_side[1] == 1
short_exit := (tgt_hit or stop_hit) and in_trade[1] == true and trade_side[1] == -1   

in_trade := long_entry or short_entry ? true : long_exit or short_exit ?  false : in_trade[1]

// bgcolor(trade_side == 1 and low <= stop ? color.new(color.white, 70) : na)
// bgcolor(trade_side == 1 ? color.new(color.lime,80) : trade_side == -1 ? color.new(color.red, 80) : na)

// plot signals
// plotshape(long_entry ? low - (syminfo.mintick * 20) : na,
//  style=shape.labelup, editable=false, text= "BUY", textcolor=color.white,
//  location= location.belowbar, color=color.new(#2e847c, 0), size=size.tiny)

// plotshape(short_entry ? high + (syminfo.mintick * 20) : na,
//  style=shape.labeldown, editable=false, text='SELL', textcolor=color.white,
//  location=location.abovebar, color=color.new(#ff0000, 0), size=size.tiny)

// plotshape(long_exit ? high + (syminfo.mintick * 20) : na,
//  style=shape.labeldown, editable=false, text='Exit', textcolor=color.white,
//  location=location.abovebar, color=color.new(#434651, 40), size=size.tiny)

// plotshape(short_exit ? low - (syminfo.mintick * 20) : na,
//  style=shape.labelup, editable=false, text= "Exit", textcolor=color.white,
//  location= location.belowbar, color=color.new(#434651, 40), size=size.tiny)


p_entry = plot(in_trade ? entry_price : na, title = 'Entry', color = color.blue, style = plot.style_circles, editable = false)
p_tgt = plot(in_trade ? target : na, title = 'Target', color = color.lime, style = plot.style_circles, editable = false)
p_stop = plot(in_trade ? stop : na, title = 'Stop', color = color.rgb(255, 0, 0), style = plot.style_circles, editable = false)

fill(p_entry, p_tgt, title = 'Profit Zone', color = color.new(color.green, 90))
fill(p_entry, p_stop, title = 'Loss Zone', color = color.new(color.red, 90))



// send orders
if long_entry
    strategy.entry("LE", direction = strategy.long)

if short_entry
    strategy.entry("SS_E", direction = strategy.short)

if strategy.position_size > 0
    strategy.exit("LX", from_entry = "LE", limit = target, stop = stop, comment = 'LX')

if strategy.position_size < 0
    strategy.exit("SS_X", from_entry = "SS_X", limit = target, stop = stop, comment = 'LX')