can someone please explain
Hi can anyone explain this part of the code in the "macd sample ea " .
.... Important notice: to exclude insignificant changes of the MACD indicator (small
'hillocks' on the chart) from our analysis, we introduce an additional measure
of controlling the size of the plotted 'hillocks' as follows: the indicator size
should be at least 5 units of the minimum price (5*Point, which for USD/CHF = 0.
0005 and for USD/JPY = 0.05). What are they actually measuring ? Is it just the
level the macd reaches ? thanks in advance
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IF you look at the idea behind MACD indicator then you understand that value between
two moving averages can be very small. Sometimes the price isn't moving anywhere, going a little up
to come a little down and so some time. Then the MACD indicator is near zero level
going and coming back. This time you can consider as dead time. If you make a analysis
then those dead zones are changing values but giving no information. moving average
goes down but there is no movement. Looks like those folks wants to exclude that
kind of dead zone from analysis to get more accurate data.
The level of 5 pips seems a little small to give an reasonable effect!
The level of 5 pips seems a little small to give an reasonable effect!
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