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MACD double bottom divergence

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superwick

Posted : Sunday, July 9, 2006 6:54:20 PM

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Joined: 4/29/2006
Posts: 9

I've got a PCF to find double bottoms

100 * MINL21 / MINL21.21

And then I have an easyscan that shows me all double bottoms using that PCF.

Now I want to add to it by showing my all double bottoms where the MACD Histogram had a corresponding lower low.

How do I do this?

Craig_S

Posted : Sunday, July 9, 2006 8:01:21 PM

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What are the MACD histo settings you are using?

- Craig
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superwick

Posted : Sunday, July 9, 2006 8:48:57 PM

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short 12
Long 26
Period 9

Exponential

Craig_S

Posted : Sunday, July 9, 2006 8:56:51 PM

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You want the value of the MACD today to be the lowest for the past 42 day?

- Craig
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superwick

Posted : Sunday, July 9, 2006 9:26:37 PM

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I'm not sure what you mean.. I'm pretty new at this sorry.

I'm assuming that for the double bottom on the chart the macd histogram made a double bottom, so I'm just trying to make a scan that'll show the second bottom of the histogram being more shallow than the first.

Craig_S

Posted : Sunday, July 9, 2006 10:00:38 PM

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Joined: 10/1/2004
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This will be tricky. You can MIN something like C but not MACD (at least not easily over 21 days).

Try this for now:

100*((XAVGC12-XAVGC26)-(XAVG(XAVGC12,9)-XAVG(XAVGC26,9)))/(XAVGC12.21-XAVGC26.21)-(XAVG(XAVGC12.21,9)-XAVG(XAVGC26.21,9)))

This gives the value of the MACD today as a percent of the value 21 days ago.

- Craig
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superwick

Posted : Monday, July 10, 2006 12:44:59 AM

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ok thank you! i will try this out tonight.

diceman

Posted : Monday, July 10, 2006 1:35:37 AM

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Joined: 1/28/2005
Posts: 6,049

"100*((XAVGC12-XAVGC26)-(XAVG(XAVG12,9)-XAVG(XAVG26,9)))/(XAVGC12.21-XAVGC26.21)-(XAVG(XAVG12.21,9)-XAVG(XAVG26.21,9)))"

I think some of the "Cs" are missing in XAVG"C".

Thanks

diceman

Posted : Monday, July 10, 2006 9:44:58 AM

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Joined: 1/28/2005
Posts: 6,049

I believe this is the intended formula:

100*((XAVGC12-XAVGC26)-(XAVG(XAVGC12,9)-XAVG(XAVGC26,9)))/(XAVGC12.21-XAVGC26.21)-(XAVG(XAVGC12.21,9)-XAVG(XAVGC26.21,9)))

Thanks

Craig_S

Posted : Monday, July 10, 2006 9:55:15 AM

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You have an eye for typos, diceman. Thanks (fixed, BTW)

- Craig
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bustermu

Posted : Monday, July 10, 2006 10:29:30 AM

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Posts: 2,645

QUOTE (Craig_S)

Craig,

In general, division by a quantity that can change sign should not be done. The problem is easily observed if you plot the PCF as a Custom Indicator.

Thanks,
Jim Murphy

Craig_S

Posted : Monday, July 10, 2006 10:35:01 AM

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Good point.

What do you think is the best way to compare these two histo points? Subtraction?

100*((XAVGC12-XAVGC26)-(XAVG(XAVGC12,9)-XAVG(XAVGC26,9)))-(XAVGC12.21-XAVGC26.21)-(XAVG(XAVGC12.21,9)-XAVG(XAVGC26.21,9)))

- Craig
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bustermu

Posted : Monday, July 10, 2006 10:19:27 PM

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Posts: 2,645

QUOTE (Craig_S)

Craig,

You did not mean the PCF you wrote (parentheses).

Consider:

(XAVGC12-XAVGC26-(XAVG(XAVGC12,9)-XAVG(XAVGC26,9)))
<(XAVGC12.21-XAVGC26.21-(XAVG(XAVGC12.21,9)-XAVG(XAVGC26.21,9)))

At least, 21*21 = 441 similar inequalities AND'ed and OR'ed together properly will determine if the lowest histogram value of the 42 days occurred in the most recent 21 days. This sounds like the original request. Maybe not?

Thanks,
Jim Murphy

Craig_S

Posted : Tuesday, July 11, 2006 6:00:43 AM

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There is no doubt that would work if someone took the time to create the beast.

(((XAVGC12-XAVGC26-(XAVG(XAVGC12,9)-XAVG(XAVGC26,9))) < (XAVGC12.21-XAVGC26.21-(XAVG(XAVGC12.21,9)-XAVG(XAVGC26.21,9)))) AND
((XAVGC12-XAVGC26-(XAVG(XAVGC12,9)-XAVG(XAVGC26,9))) < (XAVGC12.22-XAVGC26.22-(XAVG(XAVGC12.22,9)-XAVG(XAVGC26.22,9)))) AND
((XAVGC12-XAVGC26-(XAVG(XAVGC12,9)-XAVG(XAVGC26,9))) < (XAVGC12.23-XAVGC26.23-(XAVG(XAVGC12.23,9)-XAVG(XAVGC26.23,9)))) AND
[continue this pattern until you get to]
((XAVGC12-XAVGC26-(XAVG(XAVGC12,9)-XAVG(XAVGC26,9))) < (XAVGC12.42-XAVGC26.41-(XAVG(XAVGC12.41,9)-XAVG(XAVGC26.41,9)))) AND
((XAVGC12-XAVGC26-(XAVG(XAVGC12,9)-XAVG(XAVGC26,9))) < (XAVGC12.42-XAVGC26.42-(XAVG(XAVGC12.42,9)-XAVG(XAVGC26.42,9)))))
OR
(((XAVGC12.1-XAVGC26.1-(XAVG(XAVGC12.1,9)-XAVG(XAVGC26.1,9))) < (XAVGC12.21-XAVGC26.21-(XAVG(XAVGC12.21,9)-XAVG(XAVGC26.21,9)))) AND
((XAVGC12.1-XAVGC26.1-(XAVG(XAVGC12.1,9)-XAVG(XAVGC26.1,9))) < (XAVGC12.22-XAVGC26.22-(XAVG(XAVGC12.22,9)-XAVG(XAVGC26.22,9)))) AND
((XAVGC12.1-XAVGC26.1-(XAVG(XAVGC12.1,9)-XAVG(XAVGC26.1,9))) < (XAVGC12.23-XAVGC26.23-(XAVG(XAVGC12.23,9)-XAVG(XAVGC26.23,9)))) AND
[continue this pattern until you get to]
((XAVGC12.1-XAVGC26.1-(XAVG(XAVGC12.1,9)-XAVG(XAVGC26.1,9))) < (XAVGC12.42-XAVGC26.41-(XAVG(XAVGC12.41,9)-XAVG(XAVGC26.41,9)))) AND
((XAVGC12.1-XAVGC26.1-(XAVG(XAVGC12.1,9)-XAVG(XAVGC26.1,9))) < (XAVGC12.42-XAVGC26.42-(XAVG(XAVGC12.42,9)-XAVG(XAVGC26.42,9)))))

You would then OR another set for XAVGC12.2..... You would do this 21 times until you get to XAVGC12.21.....

- Craig
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