davez
8 posts
msg #32733
- Ignore davez |
8/1/2004 8:27:15 PM
My understanding of the MACD calc is almost exactly as you describe in the Indicator Index "... To create the MACD, the difference of the two moving averages is plotted as the primary plot. A secondary plot is generated which is a moving average of the initial, or primary plot. The secondary plot is slow version of the primary plot and typically buy or sell signals are generated when a crossover between these two lines occur."
To be more precise, these should be exponential MA's?
So, using the common MACD of 12-26-9 on a daily chart, the first line plotted is the difference between the 12 and 26 day EMA's. The second line plotted is a 9 day EMA of the first line. To define a crossing of these two lines then, wouldn't all three of these values need to be specified?
Yet a crossing of these two lines is defined here as :
MACD Fast Line(12,26) crossed below the MACD Slow Line(12,26)
How is the '9' value in the Slow Line accounted for in this crossing?
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robdavis
69 posts
msg #32735
- Ignore robdavis |
8/1/2004 11:04:37 PM
Good point. You're right. Three parameters, no two, should be the norm. This is a valid, needed, and fixable issue for SF Support. This point of yours also applies to both fast *and* slow stochastics.
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tomb
267 posts
msg #32739
- Ignore tomb |
8/2/2004 9:19:35 AM
Hi,
The third parameter is assumed to be "9" in the example you provided. If you leave off any paramters, the defaults of "12,26,9" will be used. For example:
You can specify all 3 parameters. For example:
Hope that helps,
Tom.
StockFetcher.com Support
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davez
8 posts
msg #32742
- Ignore davez |
8/2/2004 5:24:22 PM
Hi Tom.
It looks like it works - no matches today for other values, but there were for three months ago.
Thanks
davez
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