Registered User Joined: 5/20/2005 Posts: 178

Dear trainer,
I understand it is too hard/long to write a pcf on MACD divergence from price. However, is it possible to write a pcf on the linear regression 21 on the MACD(10,21,7) and to show divergence from price that way?
Thanks
james

Registered User Joined: 5/20/2005 Posts: 178

and how about a linear regression 21 on price? can you also write a pcf on that?
james

Worden Trainer
Joined: 10/7/2004 Posts: 65,138

Here's one way to write a 21Period Linear Regression of Price:
AVGC21 + 10 * (10 * C + 9 * C1 + 8 * C2 + 7 * C3 + 6 * C4 + 5 * C5 + 4 * C6 + 3 * C7 + 2 * C8 + C9  C11  2 * C12  3 * C13  4 * C14  5 * C15  6 * C16  7 * C17  8 * C18  9 * C19  10 * C20) / 770
If you are interested in divergences, you are actually probably interested in the slope instead of the endpoint (which is just the last part of the formula):
(10 * C + 9 * C1 + 8 * C2 + 7 * C3 + 6 * C4 + 5 * C5 + 4 * C6 + 3 * C7 + 2 * C8 + C9  C11  2 * C12  3 * C13  4 * C14  5 * C15  6 * C16  7 * C17  8 * C18  9 * C19  10 * C20) / 770
Do you want the MACD Linear Regression Formula to be of the MACD, the Trigger Line or the Histogram? Do you want the Linear Regression endpoint or slope?
Bruce Personal Criteria Formulas TC2000 Support Articles

Registered User Joined: 5/20/2005 Posts: 178

Thanks bruce, i believewould like the MACD linear regression formula to be of the MACD. What is the trigger line?
a question about the formula, why divide by 770?
james

Worden Trainer
Joined: 10/7/2004 Posts: 65,138

Here's one way to write a 21Period Linear Regression of the raw Exponential MACD Line:
AVG(XAVGC10,21)  AVG(XAVGC21,21) + 10 * (10 * (XAVGC10  XAVGC21) + 9 * (XAVGC10.1  XAVGC21.1) + 8 * (XAVGC10.2  XAVGC21.2) + 7 * (XAVGC10.3  XAVGC21.3) + 6 * (XAVGC10.4  XAVGC21.4) + 5 * (XAVGC10.5  XAVGC21.5) + 4 * (XAVGC10.6  XAVGC21.6) + 3 * (XAVGC10.7  XAVGC21.7) + 2 * (XAVGC10.8  XAVGC21.8) + (XAVGC10.9  XAVGC21.9)  (XAVGC10.11  XAVGC21.11)  2 * (XAVGC10.12  XAVGC21.12)  3 * (XAVGC10.13  XAVGC21.13)  4 * (XAVGC10.14  XAVGC21.14)  5 * (XAVGC10.15  XAVGC21.15)  6 * (XAVGC10.16  XAVGC21.16)  7 * (XAVGC10.17  XAVGC21.17)  8 * (XAVGC10.18  XAVGC21.18)  9 * (XAVGC10.19  XAVGC21.19)  10 * (XAVGC10.20  XAVGC21.20)) / 770
Here's the slope portion:
(10 * (XAVGC10  XAVGC21) + 9 * (XAVGC10.1  XAVGC21.1) + 8 * (XAVGC10.2  XAVGC21.2) + 7 * (XAVGC10.3  XAVGC21.3) + 6 * (XAVGC10.4  XAVGC21.4) + 5 * (XAVGC10.5  XAVGC21.5) + 4 * (XAVGC10.6  XAVGC21.6) + 3 * (XAVGC10.7  XAVGC21.7) + 2 * (XAVGC10.8  XAVGC21.8) + (XAVGC10.9  XAVGC21.9)  (XAVGC10.11  XAVGC21.11)  2 * (XAVGC10.12  XAVGC21.12)  3 * (XAVGC10.13  XAVGC21.13)  4 * (XAVGC10.14  XAVGC21.14)  5 * (XAVGC10.15  XAVGC21.15)  6 * (XAVGC10.16  XAVGC21.16)  7 * (XAVGC10.17  XAVGC21.17)  8 * (XAVGC10.18  XAVGC21.18)  9 * (XAVGC10.19  XAVGC21.19)  10 * (XAVGC10.20  XAVGC21.20)) / 770
770 is the sum of the squares of the coefficients.
Bruce Personal Criteria Formulas TC2000 Support Articles

Registered User Joined: 5/20/2005 Posts: 178

Dear Bruce,
Thank you for the formula. What are the differences of using endpoint or slope formula? (i am trying to find the divergence on stock price and technical indicators, both positive and negative divergences)
james

Registered User Joined: 5/20/2005 Posts: 178

Bruce,
I have recently changed my settings on the MACD. Instead of MACD(10,21,7), i am using MACD(5,21,5). If i want to adjusting the setting changes to the pcfs you wrote, is it correct that all i need to change is replacing all XAVGC10 to XAVGC5? and that i still dont understand how did you get 770. can you explain that more in detail?
Thanks again
james

Worden Trainer
Joined: 10/7/2004 Posts: 65,138

jlin827, Since the Linear Regression Period didn't change, that should work:
Here's one way to write a 21Period Linear Regression of the raw Exponential MACD Line:
AVG(XAVGC5,21)  AVG(XAVGC21,21) + 10 * (10 * (XAVGC5  XAVGC21) + 9 * (XAVGC5.1  XAVGC21.1) + 8 * (XAVGC5.2  XAVGC21.2) + 7 * (XAVGC5.3  XAVGC21.3) + 6 * (XAVGC5.4  XAVGC21.4) + 5 * (XAVGC5.5  XAVGC21.5) + 4 * (XAVGC5.6  XAVGC21.6) + 3 * (XAVGC5.7  XAVGC21.7) + 2 * (XAVGC5.8  XAVGC21.8) + (XAVGC5.9  XAVGC21.9)  (XAVGC5.11  XAVGC21.11)  2 * (XAVGC5.12  XAVGC21.12)  3 * (XAVGC5.13  XAVGC21.13)  4 * (XAVGC5.14  XAVGC21.14)  5 * (XAVGC5.15  XAVGC21.15)  6 * (XAVGC5.16  XAVGC21.16)  7 * (XAVGC5.17  XAVGC21.17)  8 * (XAVGC5.18  XAVGC21.18)  9 * (XAVGC5.19  XAVGC21.19)  10 * (XAVGC5.20  XAVGC21.20)) / 770
Here's the slope portion:
(10 * (XAVGC5  XAVGC21) + 9 * (XAVGC5.1  XAVGC21.1) + 8 * (XAVGC5.2  XAVGC21.2) + 7 * (XAVGC5.3  XAVGC21.3) + 6 * (XAVGC5.4  XAVGC21.4) + 5 * (XAVGC5.5  XAVGC21.5) + 4 * (XAVGC5.6  XAVGC21.6) + 3 * (XAVGC5.7  XAVGC21.7) + 2 * (XAVGC5.8  XAVGC21.8) + (XAVGC5.9  XAVGC21.9)  (XAVGC5.11  XAVGC21.11)  2 * (XAVGC5.12  XAVGC21.12)  3 * (XAVGC5.13  XAVGC21.13)  4 * (XAVGC5.14  XAVGC21.14)  5 * (XAVGC5.15  XAVGC21.15)  6 * (XAVGC5.16  XAVGC21.16)  7 * (XAVGC5.17  XAVGC21.17)  8 * (XAVGC5.18  XAVGC21.18)  9 * (XAVGC5.19  XAVGC21.19)  10 * (XAVGC5.20  XAVGC21.20)) / 770
Bruce Personal Criteria Formulas TC2000 Support Articles
