Indicators: MACD Divergence - page 3
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Indicators: Moving Average of Oscillator (OsMA)
newdigital, 2014.03.21 07:04
Scalping with MACD (based on dailyfx article)
When a scalper begins their day, there are usually quite a few questions that need to be answered before ever placing a trade.
What’s moving the market this morning?
Which markets are most active?
What drivers (or news) might come out to push the market further?
Is my coffee ready yet?
These are just a few examples… but suffice it to say that those who are day-trading in markets have quite a bit on their mind every single trading day.
The Setup
Before a scalper ever triggers a position they need to first find the appropriate market environment.
For fundamental-based traders, Multiple Time Frame Analysis can be helpful; but more important is their outlook or opinion and the fact that that outlook or opinion should mesh with the ‘bigger picture’ view of what’s going on at the moment.
For scalpers, the hourly and 4-hour charts carry special importance, as those are the ideal timeframes for seeing the bigger picture.
After that, traders should look to diagnose the trend (or lack thereof).
A great indicator for investigating trend strength is the Average Directional Index (ADX). Also popular for investigating trends is the Moving Average Indicator.
The Entry
After the day-trader has found a promising setup, they then need to decide how to trigger into positions, and MACD can be a very relevant option for such situations.
Because the trader already knows the direction they want to trade in, they merely need to wait for a corresponding signal via MACD to initiate the position.
When MACD crosses up and over the signal line, the trader can look to go long.
After a long position is triggered, the trader can look to close the position when MACD moves down and under the signal line (which is usually looked at as a sell signal, but because you did the ‘bigger picture analysis’ with the longer-term chart, this is merely a ‘close the long signal.’)
Scalpers can trigger positions when MACD Signal takes place in direction of their bias
On the other side of this equation: If the trader had determined the trend to be down on the longer-term chart or if their fundamental bias is pointing lower, they can look for MACD to cross down and under the signal line to trigger their short position.
And once MACD crosses up and over the signal line, the trader can look to cover their short position.
Scalpers can close positions when opposing MACD Signal takes place
The Context
The aforementioned approach can work phenomenally in a day-trading/scalping approach. But the fact-of-the-matter is that scalping profitably entails a lot more than just a trading plan, and an entry strategy.
Risk management is the undoing of most new traders; and day-traders and scalpers fall victim to this susceptibility even more so than most.
look this sample that I got from another trade system that use this macd with 2 color .
Thank to the owner of this indicator.
Thank you guys for sharing good idea.
@zemo Nice MACD indicator picture, which site did you get that?
@ Sergey Golubev thank for good explanation. Is it possible to code a MACD indicator which Zemo has posted? It look very interesting.
Thank you.
Thank to the owner of this indicator.
Thank you guys for sharing good idea.
@zemo Nice MACD indicator picture, which site did you get that?
@ Sergey Golubev thank for good explanation. Is it possible to code a MACD indicator which Zemo has posted? It look very interesting.
Thank you.
this macd I got the picture from invest charts" plataform... that has it with color direction change
No posts from 2016 to today. I think it is time to wake up this thread.
Mr Alain Verleyen is it possible to add push notification to the indicator, please?
And thank you very much publishing to this great creation. I cant believe it is only using 1 candle for confirmation. I've never seen a faster divergence indicator than this. Simply amazing!Yes weird. Anyway, did you read this "useless answer" above in the topic ?
Hi Alain, please can you help me with the solution to this. I have recently started learning how to code and after finding your indicator and this thread, i tried to fix the code but no luck. Any help will be appreciated. Thanks
Fix what code ? Show your code and explain the problem you have.
Sorry for not being clear. I am attempting to make the indicator signal appear on the second candle instead of the third candle (if at all possible). I see you posted a clue on this and I have tried tweaking your code with the little knowledge i have but no luck. I have messed around with rates_total to macdbuffershift but not quite sure where to be looking.
You missed the point. The post you are referring to was about HOW to get the signal from an EA, you obviously can't have it by just getting the last 2 candles values, you need the third.
It's NOT possible to have an early signal because to detect a divergence you need a peak/trough and for that you need an additional candle which CLOSE. So when candle 0 just open, that means candle 1 is close, and it allow to confirm the peak/trough at candle 2. If someone want to modify the indicator to use unconfirmed peak/trough to have early signal, one can do it, but I will not help to that because it's a bad idea as you will get a lot of bad signals.
What could be done is to DRAW the signal on candle 1 or even candle 0, but that will change nothing, and I decided to draw the signal on the candle which actually show the peak/trough.
You missed the point. The post you are referring to was about HOW to get the signal from an EA, you obviously can't have it by just getting the last 2 candles values, you need the third.
It's NOT possible to have an early signal because to detect a divergence you need a peak/trough and for that you need an additional candle which CLOSE. So when candle 0 just open, that means candle 1 is close, and it allow to confirm the peak/trough at candle 2. If someone want to modify the indicator to use unconfirmed peak/trough to have early signal, one can do it, but I will not help to that because it's a bad idea as you will get a lot of bad signals.
What could be done is to DRAW the signal on candle 1 or even candle 0, but that will change nothing, and I decided to draw the signal on the candle which actually show the peak/trough.