MACD indicator

 

We are continuing discussion about the indicators.

We have the following thread:

https://www.mql5.com/en/forum/175886

https://www.mql5.com/en/forum/177239

https://www.mql5.com/en/forum/177358

https://www.forex-tsd.com/forum/debates-discussions/9785-rsi-indicator

https://www.mql5.com/en/forum

https://www.mql5.com/en/forum/173170

https://www.mql5.com/en/forum/176430

Now we are talking about MACD.

 

"Technical Analysis from A to Z":

The MACD ("Moving Average Convergence/Divergence") is

a trend following momentum indicator that shows the relationship between two moving averages of prices.

The MACD was developed by

Gerald Appel, publisher of Systems

and Forecasts.

The MACD is the difference between

a 26-day and 12-day exponential moving average.

A 9-day exponential moving average,

called the "signal" (or "trigger") line

is plotted on top of the MACD to show

buy/sell opportunities. (Appel specifies

exponential moving averages as percentages.

Thus, he refers to these three moving averages

as 7.5%, 15%, and 20% respectively.)[/CODE]

Appel, Gerald. The Moving Average Convergence-Divergence Method. Great Neck, NY: Signalert, 1979.

Interpretation

The MACD proves most effective

in wide-swinging trading markets.

There are three popular ways

to use the MACD: crossovers,

overbought/oversold conditions,

and divergences.[/CODE]

Crossovers

The basic MACD trading rule is

to sell when the MACD falls below its

signal line. Similarly, a buy signal occurs

when the MACD rises above its signal line.

It is also popular to buy/sell when

the MACD goes above/below zero.[/CODE]

[CODE]Overbought/Oversold Conditions

The MACD is also useful as an

overbought/oversold indicator.

When the shorter moving average

pulls away dramatically from the

longer moving average (i.e., the MACD rises),

it is likely that the security price is

overextending and will soon return

to more realistic levels.

MACD overbought and oversold

conditions exist vary from security

to security.

[CODE]Divergences

A indication that an end to the current

trend may be near occurs when

the MACD diverges from the security.

A bearish divergence occurs when

the MACD is making new lows while

prices fail to reach new lows.

A bullish divergence occurs when

the MACD is making new highs

while prices fail to reach new highs.

Both of these divergences are most

significant when they occur

at relatively overbought/oversold levels.

[CODE]Calculation

The MACD is calculated by

subtracting the value of a 26-day

exponential moving average from

a 12-day exponential moving average.

A 9-day dotted exponential

moving average of the MACD

(the "signal" line) is then

plotted on top of the MACD.
 

MACD with any MA

I modified MACD a little bit so you can choose mode sma, ema, smma, or lwma.

 

Where did you get MACD indicatator with two lines like the above chart ?

 

OSMA Indicator Problem

Hi

I found the OSMA color indicator but it is showing different results from MT4 OSMA.

Image and indicator attached.

Can someone fix this for me

BEST WISHES,

NEW TRADER

Files:
 

^^ It's from cja, post # 5

https://www.mql5.com/en/forum/177922

 

Trading Systems:

MACD(5,34,5) for asctrend M5 system:

- elite section thread (all the attachments are on the 1st post);

- some image with description.

Better MACD Divergence Signals is here.

Farewell setup: trading system is here.

Fruity Pebbles Trading System with many MACD indicators converted from VT.

 

Ideas:

Simple MACD w/ Semi-Martingale MM is here.

MACD Code: good idea to code MACD as the same with different platforms and different coding sources as ebooks and so on. Just to compare many MACD codes explanation to code the right one. The thread is here.

MACD Parabolic SAR: the idea is here.

CCI + MACD: the idea is on this thread.

Schaff Trend Cycle: the thread about what is the connected between Schaff Trend Cycle and MACD and some ideas about it.

Multi-indics indicator: multi- indicators indicator is here.

Combination of bollinger bands and macd: somewhere on this thread.

 

More to follow.

(reserved post).

 

OSMA color

The OSMA color indicator is very close to the MACD so I just leave it here:

Files:
osma1.gif  16 kb
 

EAs:

GridMACD is here (fixed version)..

- Explanation about this EA/settings is here.

- GridMACD with trailing stop version development thread.

MACD histogram EA is here.

Simple MACD EAs:

- Automated MACD Trader: public thread.

- SIMPLE-MACD-EA: public thread.

TimeBasedEA: buy and sell specific currency pair at specific time based on MACD_Sample EA is here.

MACD-WDD EA: public thread.

MACD_signal EA: on this post.

EA with StepMA and MACD: the thread.

based.on MACD300 pip/month article as reference on 4H-TF-GBPJPY>+88% backtest: EA based on MACD.