MAD Indicator performance
2025-02-05
Category: None

MAD indicator  again doing its job perfectly, its your partner in crime friends especially in crypto world.

Here’s how the indicator performing (totally customizable and you can set alerts as well):
 	1.	Background Zones: 
	•	The chart is segmented into red and green background zones.
	•	Red Zones: Indicate bearish conditions or a downward trend based on the indicator’s signals (e.g., Z-score, RSI, or volume).
	•	Green Zones: Indicate bullish conditions or an upward trend.
 	2.	Buy and Sell Signals: 
	•	“BUY” Labels: These are generated when certain conditions (like crossing the lower band, divergence, or other volume and trend-based parameters) indicate potential upward momentum.
	•	“SELL” Labels: These appear when conditions favor a downward trend (e.g., price crossing the upper band, weakening momentum, or specific Z-score values).
	•	The signals align with price movements, especially during reversals or breakout points.
 	3.	Key Lines and Indicators: 
	•	A blue line (likely an EMA) serves as a trend filter to assess the market’s direction.
	•	Two outer bands may represent dynamic thresholds based on Z-score or Bollinger Bands, helping the MAD indicator identify extreme price movements or reversals.
	•	The red trendline illustrates price action, marking support or resistance.
 	4.	Performance: 
	•	In the downtrend section (Red Zone): Consecutive “SELL” signals align with price dips, capturing a significant portion of the move.
	•	During the uptrend section (Green Zone): “BUY” signals are issued at the start of the reversal, and the background turns green, aiding trend-following traders.
	•	Transitional points are marked by RSI and Z-score values, helping the indicator avoid whipsaws in sideways markets.

 Overall Evaluation: 

The  MAD indicator  seems effective in:
	•	Identifying strong trends.
	•	Capturing reversal points.
	•	Filtering out false signals during periods of high noise with its cooldown or band logic.

If you’d like a deeper analysis of the MAD indicator’s components or suggestions for improvement based on this performance, let me know!