3 Rules MACD:
Almost every trader used or at least took a look at Gerald
Appel's MACD. Looking at our Old Bag of Tricks we rescued a technique
several traders used/use which is adding additional filters to MACD in
order to avoid false or weak entry signals over traditional crossovers.
We cannot recall in the material we rescued where/when this technique
was created and who was the author, so if you know that, please tell us
and we will credit him/her properly.
The rules are quite simple and we split the indicator in 2 parts, so
the user can use the first part as a starting point for a trading setup -
for manual trading or plugging in into an EA - and the second one as a
visualizer for the patterns being found in the chart. We love visual
cues so we did the maximum in this second part so the users willing to
use this indicator as a part of a setup (or filter) in a manual trading
operation gaining visual aids as the entry point is arriving.
Indicator 1 Minions.3RulesMACD_Signal can be used alone and/or
be plugged in as a entry signal or a filter. It shows on a chart the
theoretical BUY and SELL signals as colored arrows.
Indicator 2 - Minions.3RulesMACD_Patterns can be added to the
chart along with indicator 1 or used alone. Both indicators have no
internal bond between them. This indicator 2 will open in a sub window,
plot the traditional MACD in a 2-line format (no Histogram) and
additionally will plot in colors the formations of the entry points,
numbering them as 1-2-3, being 3 the climax, that corresponds the the
arrows found in Signal indicator 1.
Hope this indicator will be useful to the community!
Please feel free to post bugs, comments, ideas and tips on what type
of markets, stocks and timeframes this indicator performs well.
Author: Minions Labs
Thanks for this code, its really awesome.
How do I use this to create an EA, auto buy & sell?
Hi, in general several EA traders have their own "generic" framework which just handle all the trade activity/errors/checking/etc... and these frameworks just receive the signals from thos 2 buffers to act... I have my own...
If you are a coder you can adapt some of your existing EAs refactoring your code and use iCustom() to read those buffers...