For traders who want a trend boundary layered onto the MACD. It reads both chop and trending moves, and is especially handy for judging momentum turns and strength.
The Bollinger Bands MACD indicator (BB MACD) wraps a Bollinger channel around the MACD, built to spot where a trend turns and how strong it is.
A plain MACD shows the gap between a fast and slow moving average. This one adds a midline and an upper/lower band on top of that gap, giving the MACD its own dynamic boundaries. When the MACD drifts inside the channel the trend is weak; when it pushes toward the band edge and flips direction, momentum is shifting. The subwindow marks turns up with green dots and turns down with magenta dots, so a glance at the dots and the bands tells you whether price is ranging or trending.
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