reverse engineering MACD-R2
- Thread starter nukethewhales31
- Start date
which one do you want the macd-r2 or the m-macd-r2?
and forex version or stock version
Test the following: Enter long when MACD line crosses above zero line, exit when MACD line crosses below signal line. Enter short when the MACD line crooses below the zero line, exit when the MACD line crosses above the signal line.
macd in the one in the paper is the same yes
its just saying that (macd-singal line / price)*100 = % of crossing inrelation to price
this is just making it so you can enter at .5 or so ride the trend and exit when price becomes over extended.
this was just proving that random walk theory was wrong but what they did with this crossing leveel had tons of implications which ive been working on recently just for forex tho.
From the paper:
"The basic concept of model MACDR2 is the same as in model MACDR1. However, the buy or sell signal is given, if the difference
between the moving averages is bigger or equal than a certain percentage of the stock price at the end of the third day after a crossing."
"The basic concept of model MACDR2 is the same as in model MACDR1. However, the buy or sell signal is given, if the difference
between the moving averages is bigger or equal than a certain percentage of the stock price at the end of the third day after a crossing."
