Hi Bruce,

A while back you gave me the following formula for a PCF that included MACD;

  MACD(3, 10) <= MIN(MACD(3, 10, 0), 21)

My question is as follow. I understand the MACD uses Exponential moving averages, is the above formula constructed with exponential moving averages? and if it is, is there a way to change that same formula but using Simple Moving Averages?

Thanks Bruce

That formula uses exponential moving averages. If you wanted to use simple moving averages you would have to write out the MACD instead of using the MACD function.

AVGC3 - AVGC10 = MIN(AVGC3 - AVGC10, 21)

Thanks Bruce

You're welcome.