Author: Andrey N. Bolkonsky
The Moving Averages Convergence/Divergence Indicator by William Blau is described in the book Momentum, Direction, and Divergence: Applying the Latest Momentum Indicators for Technical Analysis".
The Moving Average Convergence/Divergence (MACD) technical Indicator is the difference between two exponentially smoothed moving averages (EMA) (fast EMA has period s and slow EMA has period r).
The sign of MACD indicates the relative position of fast s-period EMA and slow r-period EMA. It's positive when EMA(s)>EMA(r) and negative if EMA(s)<EMA(r). The increase of the |MACD| (absolute value) indicates the divergence of moving averages, the decrease of of the |MACD| indicated the convergence of EMAs.
Moving Averages Convergence/Divergence by William Blau.
Moving Averages Convergence/Divergence is calculated by formula:
macd(price,r,s) = EMA(price,s) - EMA(price,r)
s < r
The formula of MACD by William Blau looks as follows:
MACD(price,r,s,u) = EMA( macd(price,r,s) ,u) = EMA( EMA(price,s)-EMA(price,r) ,u)
s < r
Translated from Russian by MetaQuotes Software Corp.
Original code: https://www.mql5.com/ru/code/375
Ergodic Mean Deviation Index (MDI) Oscillator by William Blau.Mean Deviation Index Blau_MDI
Mean Deviation Index (MDI) by William Blau.