Rank: Advanced Member
Groups: Registered, Registered Users
Joined: 1/19/2005(UTC)
Posts: 1,065
Location: Koh Pha-Ngan, Earth
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Pharon, don't listen to that Patrick guy - he is currently suffering from jet-lag and culture shock. :stretch:
The MACD Histogram is normally considered the difference between the MACD and its EMA signal line.
For example:
[code:1:f07ddd80b9]
{ MACD & Histogram }
{ http://www.metastocktools.com }
{ User inputs }
shortPds:=Input("shorter MACD periods",
1,260,12);
longPds:=Input("longer MACD periods",
2,2600,26);
triggerPds:=Input("MACD signal periods",
1,260,9);
plot:=Input("plot: [1]MACD, [2]Histogram",
1,2,1);
{ MACD }
Mac:=Mov(C,shortPds,E)-Mov(C,longPds,E);
{ Signal }
Signal:=Mov(Mac,triggerPds,E);
{ Histogram }
Hist:=Mac-Signal;
{ Plot in own window }
0;If(plot=1,Signal,Hist);
If(plot=1,Mac,Hist)
[/code:1:f07ddd80b9]
The MACD measures price momentum, whereas the MACDH measures the acceleration/deceleration of price momentum.
Furthermore, the MACDHH (difference between the MACDH and its own EMA signal line) measures acceleration/deceleration of acceleration/deceleration of price momentum.
And as for the MACDHHH... :)
jose '-)
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