Registered User
Joined: 12/30/2004
Posts: 84
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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.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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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!
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Registered User
Joined: 12/30/2004
Posts: 84
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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".
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Registered User
Joined: 12/19/2004
Posts: 17
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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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