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hunkinsf
Posted : Monday, October 8, 2007 5:40:13 PM
Registered User
Joined: 10/7/2004
Posts: 27
Why can MACD, the MOST used function, not be used in a PCF?

I even successfully recreated the MACD function manually within the PCF but because of the number of days I desire (MACD (16,42,9)) the PCF becomes too unwieldy.

How do I overcome this limitation?
Craig_S
Posted : Tuesday, October 9, 2007 7:00:40 AM


Worden Trainer

Joined: 10/1/2004
Posts: 18,819
Have you checked out the MACD PCF examples under this video?
Understanding MACD

- Craig
Here to Help!
hunkinsf
Posted : Tuesday, October 9, 2007 8:49:03 AM
Registered User
Joined: 10/7/2004
Posts: 27
Dear Craig:

Thank you so much for pointing me to the MACD video.

My objective is to test MACD crossing MACD avg per my own weekly setting (16,42,9).  (That's 16,42 and 9 WEEKS).

I implemented your logic as follows:XAVGC80-XAVGC210 > XAVG(XAVGC45,80)-XAVG(XAVGC45,210)

I got back many erroneous results on which I hope you can enlighten. 

For symbol ABV, as an example, if you plot a weekly (line, not histogram) chart using 16,42,9, you can clearly see MACD is below MACD avg.

Yet the PCF tested true with the following values:

69.07-62.27 > 66.64-59.94

Where have I gone wrong?

Thanks!
Craig_S
Posted : Tuesday, October 9, 2007 8:59:29 AM


Worden Trainer

Joined: 10/1/2004
Posts: 18,819
Your PCF does not correspond to a weekly MACD.

You would have to create a pretty big PCF to get the weekly MACD crossing its average.

Try this for me....

1. Remove your MACD
2. Add a MACD of 16,41,1
3. Add a moving average of the MACD with a period of 9

Then do a visual difference sort of the MACD and the average on your weekly charts.  It creates a nice easy sort for you.

Check out this video: Comparing indicators using Visual Difference sorts


- Craig
Here to Help!
hunkinsf
Posted : Tuesday, October 9, 2007 2:12:06 PM
Registered User
Joined: 10/7/2004
Posts: 27
Dear  Craig:

Need some clarification:

<< Your PCF does not correspond to a weekly MACD>>

Did you mean I can't simply translate 16,42,9 weeks into 80,210,45 days for my PCF XAVG functions? If true, I simply can't create PCFs to scan weekly stats?

<<1. Remove your MACD
2. Add a MACD of 16,41,1
3. Add a moving average of the MACD with a period of 9>>

In the process of doing this, I noticed the 9 day XAVG of my MACD (16,42,9) actually differs from the avg line plotted by the MACD itself.  Why would that be?  They should be identical!?

Thanks,
Dick
Bruce_L
Posted : Tuesday, October 9, 2007 2:34:14 PM


Worden Trainer

Joined: 10/7/2004
Posts: 65,138
QUOTE (hunkinsf)
Did you mean I can't simply translate 16,42,9 weeks into 80,210,45 days for my PCF XAVG functions? If true, I simply can't create PCFs to scan weekly stats?

A Weekly MACD is based on samples of Daily values taken once every five trading days. Simply multiplying the periods by five will not return the same value. You can create Weekly Personal Criteria Formulas for MACD, but they are much longer:

Weekly MACD Histogram 16,42,9 xUp Zero:

.011286325722049 * (C + 41 / 43 * (C5 + 41 / 43 * (C10 + 41 / 43 * (C15 + 41 / 43 * (C20 + 41 / 43 * (C25 + 41 / 43 * (C30 + 41 / 43 * (C35 + 41 / 43 * (C40 + 41 / 43 * (C45 + 41 / 43 * (C50 + 41 / 43 * (C55 + 41 / 43 * (C60 + 41 / 43 * (C65 + 41 / 43 * (C70 + 41 / 43 * (C75 + 41 / 43 * (C80 + 41 / 43 * (C85 + 41 / 43 * (C90 + 41 / 43 * (C95 + 41 / 43 * (C100 + 41 / 43 * (C105 + 41 / 43 * (C110 + 41 / 43 * (C115 + 41 / 43 * (C120 + 41 / 43 * (C125 + 41 / 43 * (C130 + 41 / 43 * (C135 + 41 / 43 * (C140 + 41 / 43 * (C145 + 41 / 43 * (C150 + 41 / 43 * (C155 + 41 / 43 * (C160 + 41 / 43 * (C165 + 41 / 43 * (C170 + 41 / 43 * (C175 + 41 / 43 * (C180 + 41 / 43 * (C185 + 41 / 43 * (C190 + 41 / 43 * (C195 + 41 / 43 * (C200 + 41 / 43 * (C205 + 41 / 43 * (C210 + 41 / 43 * (C215 + 41 / 43 * (C220 + 41 / 43 * (C225 + 41 / 43 * (C230 + 41 / 43 * (C235 + 41 / 43 * (C240 + 41 / 43 * (C245 + 41 / 43 * (C250 + 41 / 43 * (C255 + 41 / 43 * (C260 + 41 / 43 * (C265 + 41 / 43 * (C270 + 41 / 43 * (C275 + 41 / 43 * (C280 + 41 / 43 * (C285 + 41 / 43 * (C290 + 41 / 43 * (C295 + 41 / 43 * (C300 + 41 / 43 * (C305 + 41 / 43 * (C310 + 41 / 43 * (C315 + 41 / 43 * (C320 + 41 / 43 * (C325 + 41 / 43 * (C330 + 41 / 43 * (C335 + 41 / 43 * (C340 + 41 / 43 * (C345 + 41 / 43 * (C350 + 41 / 43 * (C355 + 41 / 43 * (C360 + 41 / 43 * (C365 + 41 / 43 * (C370 + 41 / 43 * (C375 + 41 / 43 * (C380 + 41 / 43 * (C385 + 41 / 43 * (C390 + 41 / 43 * (C395 + 41 / 43 * (C400 + 41 / 43 * (C405 + 41 / 43 * (C410 + 41 / 43 * (C415 + 41 / 43 * (C420 + 41 / 43 * (C425 + 41 / 43 * (C430 + 41 / 43 * (C435 + 41 / 43 * (C440 + 41 / 43 * (C445 + 41 / 43 * (C450 + 41 / 43 * (C455 + 41 / 43 * (C460 + 41 / 43 * (C465 + 41 / 43 * (C470 + 41 / 43 * (C475 + 41 / 43 * (C480 + 41 / 43 * (C485 + 41 / 43 * (C490 + 41 / 43 * (C495 + 41 / 43 * (C500 + 41 / 43 * (C505 + 41 / 43 * (C510 + 41 / 43 * (C515 + 41 / 43 * (C520 + 41 / 43 * (C525 + 41 / 43 * (C530 + 41 / 43 * (C535 + 41 / 43 * (C540 + 41 / 43 * (C545 + 41 / 43 * (C550 + 41 / 43 * (C555 + 41 / 43 * (C560 + 41 / 43 * (C565 + 41 / 43 * (C570 + 41 / 43 * (C575 + 41 / 43 * (C580 + 41 / 43 * (C585 + 41 / 43 * (C590 + 41 / 43 * (C595 + 41 / 43 * (C600 + 41 / 43 * (C605 + 41 / 43 * (C610 + 41 / 43 * (C615 + 41 / 43 * (C620 + 41 / 43 * (C625 + 41 / 43 * (C630 + 41 / 43 * (C635 + 41 / 43 * (C640 + 41 / 43 * (C645 + 41 / 43 * (C650 + 41 / 43 * (C655 + 41 / 43 * (C660 + 41 / 43 * (C665 + 41 / 43 * (C670 + 41 / 43 * (C675 + 41 / 43 * (C680 + 41 / 43 * (C685 + 41 / 43 * (C690 + 41 / 43 * (C695 + 41 / 43 * (C700 + 41 / 43 * (C705 + 41 / 43 * (C710 + 41 / 43 * (C715 + 41 / 43 * (C720 + 41 / 43 * (C725)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) + .180265106000503 * (C + .8 * (C5 + .8 * (C10 + .8 * (C15 + .8 * (C20 + .8 * (C25 + .8 * (C30 + .8 * (C35 + .8 * (C40 + .8 * (C45 + .8 * (C50 + .8 * (C55 + .8 * (C60 + .8 * (C65 + .8 * (C70 + .8 * (C75 + .8 * (C80 + .8 * (C85 + .8 * (C90 + .8 * (C95 + .8 * (C100 + .8 * (C105 + .8 * (C110 + .8 * (C115 + .8 * (C120 + .8 * (C125 + .8 * (C130 + .8 * (C135 + .8 * (C140 + .8 * (C145 + .8 * (C150))))))))))))))))))))))))))))))) > .134575382340651 * (C + 15 / 17 * (C5 + 15 / 17 * (C10 + 15 / 17 * (C15 + 15 / 17 * (C20 + 15 / 17 * (C25 + 15 / 17 * (C30 + 15 / 17 * (C35 + 15 / 17 * (C40 + 15 / 17 * (C45 + 15 / 17 * (C50 + 15 / 17 * (C55 + 15 / 17 * (C60 + 15 / 17 * (C65 + 15 / 17 * (C70 + 15 / 17 * (C75 + 15 / 17 * (C80 + 15 / 17 * (C85 + 15 / 17 * (C90 + 15 / 17 * (C95 + 15 / 17 * (C100 + 15 / 17 * (C105 + 15 / 17 * (C110 + 15 / 17 * (C115 + 15 / 17 * (C120 + 15 / 17 * (C125 + 15 / 17 * (C130 + 15 / 17 * (C135 + 15 / 17 * (C140 + 15 / 17 * (C145 + 15 / 17 * (C150 + 15 / 17 * (C155 + 15 / 17 * (C160 + 15 / 17 * (C165 + 15 / 17 * (C170 + 15 / 17 * (C175 + 15 / 17 * (C180 + 15 / 17 * (C185 + 15 / 17 * (C190 + 15 / 17 * (C195 + 15 / 17 * (C200 + 15 / 17 * (C205 + 15 / 17 * (C210 + 15 / 17 * (C215 + 15 / 17 * (C220 + 15 / 17 * (C225 + 15 / 17 * (C230 + 15 / 17 * (C235 + 15 / 17 * (C240 + 15 / 17 * (C245 + 15 / 17 * (C250 + 15 / 17 * (C255 + 15 / 17 * (C260 + 15 / 17 * (C265 + 15 / 17 * (C270 + 15 / 17 * (C275)))))))))))))))))))))))))))))))))))))))))))))))))))))))) AND .011286325722049 * (C5 + 41 / 43 * (C10 + 41 / 43 * (C15 + 41 / 43 * (C20 + 41 / 43 * (C25 + 41 / 43 * (C30 + 41 / 43 * (C35 + 41 / 43 * (C40 + 41 / 43 * (C45 + 41 / 43 * (C50 + 41 / 43 * (C55 + 41 / 43 * (C60 + 41 / 43 * (C65 + 41 / 43 * (C70 + 41 / 43 * (C75 + 41 / 43 * (C80 + 41 / 43 * (C85 + 41 / 43 * (C90 + 41 / 43 * (C95 + 41 / 43 * (C100 + 41 / 43 * (C105 + 41 / 43 * (C110 + 41 / 43 * (C115 + 41 / 43 * (C120 + 41 / 43 * (C125 + 41 / 43 * (C130 + 41 / 43 * (C135 + 41 / 43 * (C140 + 41 / 43 * (C145 + 41 / 43 * (C150 + 41 / 43 * (C155 + 41 / 43 * (C160 + 41 / 43 * (C165 + 41 / 43 * (C170 + 41 / 43 * (C175 + 41 / 43 * (C180 + 41 / 43 * (C185 + 41 / 43 * (C190 + 41 / 43 * (C195 + 41 / 43 * (C200 + 41 / 43 * (C205 + 41 / 43 * (C210 + 41 / 43 * (C215 + 41 / 43 * (C220 + 41 / 43 * (C225 + 41 / 43 * (C230 + 41 / 43 * (C235 + 41 / 43 * (C240 + 41 / 43 * (C245 + 41 / 43 * (C250 + 41 / 43 * (C255 + 41 / 43 * (C260 + 41 / 43 * (C265 + 41 / 43 * (C270 + 41 / 43 * (C275 + 41 / 43 * (C280 + 41 / 43 * (C285 + 41 / 43 * (C290 + 41 / 43 * (C295 + 41 / 43 * (C300 + 41 / 43 * (C305 + 41 / 43 * (C310 + 41 / 43 * (C315 + 41 / 43 * (C320 + 41 / 43 * (C325 + 41 / 43 * (C330 + 41 / 43 * (C335 + 41 / 43 * (C340 + 41 / 43 * (C345 + 41 / 43 * (C350 + 41 / 43 * (C355 + 41 / 43 * (C360 + 41 / 43 * (C365 + 41 / 43 * (C370 + 41 / 43 * (C375 + 41 / 43 * (C380 + 41 / 43 * (C385 + 41 / 43 * (C390 + 41 / 43 * (C395 + 41 / 43 * (C400 + 41 / 43 * (C405 + 41 / 43 * (C410 + 41 / 43 * (C415 + 41 / 43 * (C420 + 41 / 43 * (C425 + 41 / 43 * (C430 + 41 / 43 * (C435 + 41 / 43 * (C440 + 41 / 43 * (C445 + 41 / 43 * (C450 + 41 / 43 * (C455 + 41 / 43 * (C460 + 41 / 43 * (C465 + 41 / 43 * (C470 + 41 / 43 * (C475 + 41 / 43 * (C480 + 41 / 43 * (C485 + 41 / 43 * (C490 + 41 / 43 * (C495 + 41 / 43 * (C500 + 41 / 43 * (C505 + 41 / 43 * (C510 + 41 / 43 * (C515 + 41 / 43 * (C520 + 41 / 43 * (C525 + 41 / 43 * (C530 + 41 / 43 * (C535 + 41 / 43 * (C540 + 41 / 43 * (C545 + 41 / 43 * (C550 + 41 / 43 * (C555 + 41 / 43 * (C560 + 41 / 43 * (C565 + 41 / 43 * (C570 + 41 / 43 * (C575 + 41 / 43 * (C580 + 41 / 43 * (C585 + 41 / 43 * (C590 + 41 / 43 * (C595 + 41 / 43 * (C600 + 41 / 43 * (C605 + 41 / 43 * (C610 + 41 / 43 * (C615 + 41 / 43 * (C620 + 41 / 43 * (C625 + 41 / 43 * (C630 + 41 / 43 * (C635 + 41 / 43 * (C640 + 41 / 43 * (C645 + 41 / 43 * (C650 + 41 / 43 * (C655 + 41 / 43 * (C660 + 41 / 43 * (C665 + 41 / 43 * (C670 + 41 / 43 * (C675 + 41 / 43 * (C680 + 41 / 43 * (C685 + 41 / 43 * (C690 + 41 / 43 * (C695 + 41 / 43 * (C700 + 41 / 43 * (C705 + 41 / 43 * (C710 + 41 / 43 * (C715 + 41 / 43 * (C720 + 41 / 43 * (C725 + 41 / 43 * (C730)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) + .180265106000503 * (C5 + .8 * (C10 + .8 * (C15 + .8 * (C20 + .8 * (C25 + .8 * (C30 + .8 * (C35 + .8 * (C40 + .8 * (C45 + .8 * (C50 + .8 * (C55 + .8 * (C60 + .8 * (C65 + .8 * (C70 + .8 * (C75 + .8 * (C80 + .8 * (C85 + .8 * (C90 + .8 * (C95 + .8 * (C100 + .8 * (C105 + .8 * (C110 + .8 * (C115 + .8 * (C120 + .8 * (C125 + .8 * (C130 + .8 * (C135 + .8 * (C140 + .8 * (C145 + .8 * (C150 + .8 * (C155))))))))))))))))))))))))))))))) <= .134575382340651 * (C5 + 15 / 17 * (C10 + 15 / 17 * (C15 + 15 / 17 * (C20 + 15 / 17 * (C25 + 15 / 17 * (C30 + 15 / 17 * (C35 + 15 / 17 * (C40 + 15 / 17 * (C45 + 15 / 17 * (C50 + 15 / 17 * (C55 + 15 / 17 * (C60 + 15 / 17 * (C65 + 15 / 17 * (C70 + 15 / 17 * (C75 + 15 / 17 * (C80 + 15 / 17 * (C85 + 15 / 17 * (C90 + 15 / 17 * (C95 + 15 / 17 * (C100 + 15 / 17 * (C105 + 15 / 17 * (C110 + 15 / 17 * (C115 + 15 / 17 * (C120 + 15 / 17 * (C125 + 15 / 17 * (C130 + 15 / 17 * (C135 + 15 / 17 * (C140 + 15 / 17 * (C145 + 15 / 17 * (C150 + 15 / 17 * (C155 + 15 / 17 * (C160 + 15 / 17 * (C165 + 15 / 17 * (C170 + 15 / 17 * (C175 + 15 / 17 * (C180 + 15 / 17 * (C185 + 15 / 17 * (C190 + 15 / 17 * (C195 + 15 / 17 * (C200 + 15 / 17 * (C205 + 15 / 17 * (C210 + 15 / 17 * (C215 + 15 / 17 * (C220 + 15 / 17 * (C225 + 15 / 17 * (C230 + 15 / 17 * (C235 + 15 / 17 * (C240 + 15 / 17 * (C245 + 15 / 17 * (C250 + 15 / 17 * (C255 + 15 / 17 * (C260 + 15 / 17 * (C265 + 15 / 17 * (C270 + 15 / 17 * (C275 + 15 / 17 * (C280))))))))))))))))))))))))))))))))))))))))))))))))))))))))

QUOTE (hunkinsf)
<<1. Remove your MACD
2. Add a MACD of 16,41,1
3. Add a moving average of the MACD with a period of 9>>

In the process of doing this, I noticed the 9 day XAVG of my MACD (16,42,9) actually differs from the avg line plotted by the MACD itself.  Why would that be?  They should be identical!?

No. This is why Craig had you change the last setting of the MACD to 1. This allows you to do the Comparison Sort on a Weekly Chart without dealing with the sorts of formulas I just provided.

-Bruce
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