How to use the Zigzag of MacD? - Technical Indicators

Mladen Rakic 2012.10.10 18:46 #361

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yoppy

First of all, in my opinion divergence is a highly subjective term. What a man can spot with no problem, a computer can not (since computer is not able to generalize) Our eye is able to see divergence even on a first glance when there is no way how the troughs can be matched normally with computer (first of all there is a matter of choosing what is forming the divergence, ... )

Second, the nature of divergence is to lag, so it is a lagging thing. Maybe that is why they look so good when drawn on chart : they can not be spotted at run-time but only after the fact

yoppy:
Hello..Mr Mladen

what if there is divergency, I hope you can give a mark in zig zag.......

Thank you...

Macd, rsi divergence with Elite indicators :) New metatrader 4 compatible

lightwind_99 2012.10.17 02:16 #362

Mladen,

I'm, wondering is it possible regarding the Zigzag of macd utilizes KAMA (kauffman) or other adaptive moving averages? Seems to me the regular MA's on low settings are highly sensitive giving wavy patterns on the MACD which leads to alot of invalid signals. Turning the settings higher on the other hand leads to lag. Kauffman seems to be optimal on MACD, may filter the trend and likewise gives a clearer onset of convergence and divergence. this is just a thought