MACDelta Scalping Indicator – AI-Tuned for Indian Indices

This indicator is designed for intraday scalping on Indian indices such as the Nifty Metal Index. It fuses momentum analysis through MACD with dynamic Fibonacci retracement zones derived from recent price pivots, forming a "Delta Wave" region that acts as a price pressure zone.

Core Logic and Workflow:

Momentum Signal via MACD:
The indicator uses a customized MACD setup with parameters (fast length 14, slow length 25, signal length 9) to detect shifts in momentum. It tracks MACD crossover events (both bullish and bearish) to time potential reversals.
Delta Wave Fibonacci Zone:
Using a rolling window of 10 bars, it calculates recent pivot highs and lows, defining a dynamic price range. From this, it determines key Fibonacci retracement levels at 50% and 61.8%. This “golden zone” identifies a price region where reversals are more probable.
Signal Confirmation Window:
To ensure relevance, the indicator only triggers sell signals within a strict 3-bar window after a bearish MACD crossover. It also confirms that the price crosses below the upper Fibonacci boundary (50% retracement) within this timeframe, indicating confirmed downside pressure.
Visual Alerts:
When conditions align, the indicator plots clear “SELL” markers above the bars on the chart for easy identification by the trader.
AI Fine-Tuning:
The original logic was further optimized using Agentic AI, which refined parameter values and timing windows, minimizing false signals and enhancing trade signal quality.

Backtesting & Performance:
Extensive backtesting from 2009 to 2022 on Indian indices shows the indicator reliably signals significant corrections and short-term downswings. Notably, it outperformed the Nifty Metal Index during periods of technical correction, validating its practical utility for scalping strategies.