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dfst24a
Posted : Sunday, November 20, 2005 2:01:40 AM
Registered User
Joined: 12/30/2004
Posts: 84
Can you assist with how to create a visual representation (one for short term and one for long term) of the following:

This indicator takes the Moving Average Convergence Divergence (MACD) indicator with the standard 12,26,9 setting and converts MACD on a scale from 0 to 100 with lookback periods of 15 (Short term)and 40 bars (long term). It normalizes momentum readings across all stocks between 0 and 100 (with 0 showing the weakest momentum and 100 showing the strongest momentum). The Momentum line is shown in green. The strength of the Price is also plotted in black, also from 0 to 100.







Craig_S
Posted : Sunday, November 20, 2005 9:01:18 AM


Worden Trainer

Joined: 10/1/2004
Posts: 18,819
I need to learn how it converts it to the 0 to 100 scale to normalize it. Do you have that information?

I could just make a stochastic of the MACD but I am not sure that is what it is looking for.

- Craig
Here to Help!
dfst24a
Posted : Sunday, November 20, 2005 6:29:26 PM
Registered User
Joined: 12/30/2004
Posts: 84
This is a comment (below) I pulled from an link. Does this help clarify your question?

"I believe normalize means that the formula was simply charting a percentage movement over a given timeframe. By finding the highest and lowest move within that period, the current position of the MACD anf the price line could be plotted relative to these extremes".
davemc
Posted : Saturday, November 26, 2005 7:16:15 AM
Registered User
Joined: 12/19/2004
Posts: 17
This is the tradestation code for Momentum Divergence Indicator from Price Headley's book: Big Trends in Trading, page 114.

I know that someone out there can convert this to TC2005, Since Tanstaafl and J2D2 were able convert the Tradestation language for acceleration bands.

(with setting = 15 bars; 40 bars is intermediate-term setting)

Input:FastMA(12),SlowMA(26),MacdMA(9),Input2(15),
BuyZone(30),SellZone(90);

Value1=IFF(Highest(Macd(Close,FastMA,SlowMA),Input2)-
Lowest(Macd(Close,FastMA,SlowMA),Input2)<>0,Highest
(MACD(Close,FastMA,SlowMA),Input2)-Lowest(MACD(Close,
FastMA,SlowMA),Input2),50);

Value2=IFF(Highest(close,Input2)-Lowest(close,Input2)<>
0,Highest(close,Input2)-Lowest(close,Input2),50);

Plot1(100*(close-Lowest(close,Input2))/Value2,"Close%");

Plot2(100*(MACD(Close,FastMA,SlowMA)- Lowest(MACD(Close,
FastMA,SlowMA),Input2))/Value1,"MACD%");

Plot3(BuyZone, "BuyZone");

Plot4(SellZone, "SellZone");

Hope This Helps,
davemc
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