Macd

[inandlong]

Quote from globaltrader:

Break down the MACD formula....actually look at how it is derived...and understand it......
if you REALLY understand it...then you will be able to look at a price chart and draw a fairly accurate MACD by freehand.....
if you can do that then you are starting to understand price and how it moves...
remember MACD, stochastics, RSI....they are ALL a DERIVATIVE of price.....the original series always shows its colors before the derivative......a derivative just simplifies things for the guys who don't understand the original series.

Sorry guys, I am not adept at annotating more than one quote per post so I have to post twice.

I am unsure what you mean by original series, so I will comment on what I think you mean, which in this case is price.

If price is what you mean then I disagree with your premise that price shows its colors before the indicator. Specifically, the use of stochastics and macd to reveal changes in momentum, particularly for me the macd. Although, if you are able to discern a descrease in momentum from price alone then that is wonderful. However, the macd, RSI, and stochastics do a fantastic job of revealing weak rallies and selloffs with strength.

 

[Breakout]

Quote from inandlong:



Breakout you are right about Lane's definition. Appel, the designer of the MACD, uses the terms negative divergence and positive divergence, and he also uses the terms bearish divergence and bullish divergence. Perhaps because his indicator also references convergence and divergence , too much of the same names referring to different ideas was more than he could bare.

Of course, "a rose by any other name ...."

Thanks for the heads up on Lane, Breakout.

Oh, Okay..."Positive Divergence" with the McDee.

Thanks

 

[Breakout]

Nice "Negative Divergence" with the McDee this morning.

 

[spieler]

this is the vocabulary i 'am familiar with
The important is to know how to interpret and we agree on that

 

[Breakout]

Quote from spieler:

this is the vocabulary i 'am familiar with
The important is to know how to interpret and we agree on that

That's cool...Remercie pour vos données...

 

[profitseer]

Quote from easyguru:

a innovative and very effective way to use MACD

THE 4MACD SYSTEM
BY ROBERT CUMMINGS

http://www.omniumsoftware.com/FourMACD.htm

thanks easy, nice link. Well written and fun to read. Now give me some time to go back and study it and set it all up. This is just the kind of crazy idea I like playing with.

 

[EqtTrdr]

ZerolagMACD

custom indicator I made for Tradestation


inputs: Price (close), length(13) ;
value1= xaverage(price,length);

inputs: length2 (13);
value2= xaverage(value1,length2);

value3= value1 - value2;

value4= value1 + value3;

inputs: Price3 (close), length3(21);
value5= xaverage(price3,length3);

inputs: length4 (21);
value6= xaverage(value5,length4);

value7= value5- value6;

value8= value5 + value7;

value9 = value4 - value8;



Plot1( Value9, "ZeroLagMACD" ) ;
Plot2 (0);

============================
if you want, plot it against any other MACD you will find this turns faster than any other MACD... doesn't lag

therefore"zero-lagMACD"