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Registered User
Joined: 3/16/2005
Posts: 13
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In comparing the MACD of 2 stocks I see that the scaling parameters are different numbers (i.e. .73 to -.73 and 1.43 to -1.43). Do these numbers represent a percentage of a standard deviation determined for each individual stock? If so, is the standard deviation based on historical highs and lows of each individual stock? If this is also correct,why do the numbers in the scaling change as I zoom out year to year?
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Registered User
Joined: 1/28/2005
Posts: 6,049
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paradice
The numbers represent the value of the MACD indicator.
They scale to the value ("high" "low") shown on the screen.
When you change timeframes the value changes to accommodate
larger or smaller ranges.
Thanks
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Registered User
Joined: 3/16/2005
Posts: 13
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Diceman
If I subtract the long term MA from the Short term MA for the day the MACD line is at .73 I get .73. What you are saying is the short term MA is 73cents higher than the long term. That makes sense.
If I move to TSV my parameters are 321 to-321. Is this
the volume , dollar , or an equated value?
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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paradice,
Watch this short video to learn exactly what MACD is, how it works and what any values it returns mean.
Understanding MACD
While your at it, you should also check out these too
Understanding Moving Averages - Part I, The Basics
Understanding Moving Averages - Part II, Using Multiple Averages
Those are the scale numbers again for TSV. The formula for TSV is not given (unlike MACDs formula). We don't now exactly what the values mean BUT there are things we can look for in TSV (where it is now vs. before and/or if it is above or below zero).
You should consider ordering Peter Worden's video on TSV. It will train you how to uncover hidden strength and weakness with this very popular and powerful indicator. It is the definitive trainer to the indicator.
Check it out here: Books & Videos
- Craig
Here to Help!
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Registered User
Joined: 10/27/2004
Posts: 36
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Happy Independence Day, Craig - and Bruce and Dave if they're there too. Thanks for the assistance you folks have given me - that I might become better independent!
Sincerely wishing you a wonderful 4th! Go play!
islandrover
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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You are very welcome!
- Craig
Here to Help!
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