Pan PrizMA Convergence Divergence
The robot whose operation is shown in the video is available on the Comments page as an example of how to use the indicator of convergence/divergence of moving averages constructed by a quartic polynomial and extrapolated by a quadratic polynomial. Pan PrizMA Convergence Divergence is an option derived from the Pan PrizMA indicator. It can be used in automated trading based on the MACD strategy. Averaging using the quartic polynomial improves the smoothness of lines, adds momentum and rhythm, while extrapolation allows controlling lagging and leading signals.
With the help of Mikhail Kozhemyako (Sepulca), we managed to solve difficulties in testing of the indicator and the EA on its basis.
- Fast_line_1_leverage - the leverage (similar to period) of a short line averaged by a quartic polynomial.
- Fast_line_2_leverage - the leverage of a short line extrapolated by a quadratic polynomial.
- Slow_line_1_leverage - the leverage of a long line averaged by a quartic polynomial.
- Slow_line_2_leverage - the leverage of a long line extrapolated by a quadratic polynomial.
- base - half of the SMA period subtracted from the price. MACD first of all represents lines, and the histogram determines gaps between them.
- Multiplikator - multiplier for the histogram.
- Signal SMA Period - signal line period.
The video shows the operation of the robot, whose description was given in comments to the Pan PrizMA indicator. This is the result of a far-from-complete optimization outside the history, and at the same time using reliable historic data, the indicator is able to identify some of its regularities.