MACD indicator
"Technical Analysis from A to Z":
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.
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]
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.
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
^^ It's from cja, post # 5
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:
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.
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
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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.