Results 1 to 9 of 9

Thread: MACD question

  1. #1
    Junior Member

    MACD question !!!

    hello everyone,

    i have been trying to apply the MACD indicator while paper trading to see if i could get a hold of it...in the school and all over the internet everyone is talking about two lines crossing however when i load the indicator in MT4 i only see a histogram and a dotted red line, how can i get the other line so i can apply the "crossing" strategy?

    thank you

  2. #2
    Specialist Member pinoyoptions's Avatar
    Hi Akrambr here a copy of MACD , Histogram and SMA EMA.. the one you been looking for.

    https://www.asuswebstorage.com/navig...1608D85320646Y

    I put it on my personal webstorage...DL for free.. anytime.

  3. #3
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by akrambr View Post
    hello everyone,

    i have been trying to apply the MACD indicator while paper trading to see if i could get a hold of it...in the school and all over the internet everyone is talking about two lines crossing however when i load the indicator in MT4 i only see a histogram and a dotted red line, how can i get the other line so i can apply the "crossing" strategy?

    thank you
    did you get it worked out? what you are looking for is called the MACD oscillator versus the more commonly used MACD histogram. I want to make sure that you understand the MACD histogram is a pictorial representation of the crossovers in the MACD oscillator. If you use MACD histogram with another oscillator like stochastic or rsi you can acheive a better result than using the MACD HIstogram and oscillator together....does that make sense to you?

  4. #4
    Junior Member

    Thank you !!!

    Quote Originally Posted by Michael Hodges View Post
    did you get it worked out? what you are looking for is called the MACD oscillator versus the more commonly used MACD histogram. I want to make sure that you understand the MACD histogram is a pictorial representation of the crossovers in the MACD oscillator. If you use MACD histogram with another oscillator like stochastic or rsi you can acheive a better result than using the MACD HIstogram and oscillator together....does that make sense to you?
    thank you pinoyoptions, i downloaded it sucessfully

    Michael, i got it working yes thank you, i have to be honest and say that i don't fully understand what you mean, what does the histogram represent again? i still haven't learnt about stochastic or RSI and how they work, i will read about them first in school and maybe then i would understand what you mean fully. thank you for your support.

    PS. I like your articles in the school

  5. #5
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by akrambr View Post
    thank you pinoyoptions, i downloaded it sucessfully

    Michael, i got it working yes thank you, i have to be honest and say that i don't fully understand what you mean, what does the histogram represent again? i still haven't learnt about stochastic or RSI and how they work, i will read about them first in school and maybe then i would understand what you mean fully. thank you for your support.

    PS. I like your articles in the school
    Ok, if you can, put up on your charts the macd histogram and the macd oscillator. look at the oscillator, the short moving average moves over and under the longer moving average, converging and diverging from it. This is what the histogram does. It measures the divergences and convergences of the moving averages on the oscillator. when the short MA is above the long MA the histogram is above the zero line, if the short MA is below the long MA then the histogram is below the zero line. Crossovers on the histogram correlate to the crossovers of the short and long moving averages on the MACD oscillator.

    Does that help any?

  6. #6
    Solid Member Zanadu's Avatar
    Hello Michael,

    I have a question regarding setting up the same scene you have mention in your
    article "Best MACD Entries Strategy"

    There you are saying

    Quote "The two moving averages specified are 50 bar simple moving average and 100 bar simple moving average. " Unquote

    While I have selected Moving Averages from the Navigator I got a window where there are many options such as

    Parameter/Level/Visualisation
    Then, Period/Shift
    MA Method
    Apply to
    Style and so on

    As I do not know anything of those things could you please assist me in setting 50 and 100 moving averages.

    What does these moving averages mean ?

    What does it mean "The two MACD’s are both standard 12/26/9 but one is histogram and the other is oscillator style"

    And what does those number (12/26/9) mean.

    I am too ignorant of the subject and want to learn step by step.

    I would appreciate your valuable assistance

  7. #7
    Solid Member Zanadu's Avatar
    Hi Michael,

    Please let me know how I can clean up the Meta 4 from unnecessary lines and indicators
    which I might have inserted while exploring the tool. I want to have only with clear
    data (only) so that I can start afresh when you reply to my above thread

  8. #8
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by Zanadu View Post
    Hello Michael,

    I have a question regarding setting up the same scene you have mention in your
    article "Best MACD Entries Strategy"

    There you are saying

    Quote "The two moving averages specified are 50 bar simple moving average and 100 bar simple moving average. " Unquote

    While I have selected Moving Averages from the Navigator I got a window where there are many options such as

    Parameter/Level/Visualisation
    Then, Period/Shift
    MA Method
    Apply to
    Style and so on

    As I do not know anything of those things could you please assist me in setting 50 and 100 moving averages.

    What does these moving averages mean ?

    What does it mean "The two MACD’s are both standard 12/26/9 but one is histogram and the other is oscillator style"

    And what does those number (12/26/9) mean.

    I am too ignorant of the subject and want to learn step by step.

    I would appreciate your valuable assistance
    Sorry for the delayed response. Sounds like you are using MT4 or other platform and sorry to say I don't have any experience with them. I use charts from OptionsXpress (I got my start trading options, not forex like most binary traders). I think Bogdan is a good source for that answer and even has an MT4 thread. As for the rest.

    Moving averages are a line drawn along side price action that is derived from an average price. It is called a moving average because each day one number is added and another is dropped of the list. A 30 bar moving average uses 30 days or 30 candlesticks of data. If you are on a daily chart it is a 30 day moving average, if it is an hourly chart it is a 30 hour moving average.

    Moving averages can be simple or exponential. Simple moving averages give equal weight to all data points, exponential give more weight to the front end of the data. Simple moving averages are less sensitive, exponential moving averages are more sensitive.

    the 12/26/9 is the setting for the MACD, it means a 12 bar and a 26 bar moving average smoothed by a 9 bar moving average. There are two ways to view MACD, histogram and oscillator, the article should explain that but come back for more answers if you need. There are also other articles in the school about MACD you should read and also on my blog.

    Cheers.

  9. #9
    Solid Member Zanadu's Avatar
    Thank you very much Michael !

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
3