Rank: Newbie
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Joined: 11/7/2009(UTC)
Posts: 9
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Hi!
Still having beginners problems!
I am used to MACD graphs like the ones for example from Stockcharts.com.
A 26,12,9 setup which is normal in most graphing tools.
The result of the MACD indicator is not even close and I am failing to understand it.
Can anyone please educate me how to get a "normal" MACD?
Have tried to create it manually, regardless of the different tricks, I cannot replicate the same as I would expect from my other graphing tools.
Regards,
Shahram
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Rank: Advanced Member
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Joined: 7/12/2007(UTC)
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Location: Perth Western Australia
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The quickest solution that comes to mind is reading the MetaStock Users Manual chapter on "Working with Indicators" (subsection "Modifying an Indicator").
If you still have a problem after reading that chapter then you could try posting a chart which shows the "normal" MACD as you see it........perhaps then someone may be able to help!
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Rank: Newbie
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Joined: 11/7/2009(UTC)
Posts: 9
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Just updated my post with an image. I have read the manual and tried all sorts of tricks. I must have missing some vital information. I just cannot get the averages to give me the same result as other applications.
Regards,
Shahram
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Rank: Advanced Member
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Hi Shahram
I'm not sure that I understand what exactly you are having trouble with but there are a couple of things with indicicators that can confuse many new MS users.
Indicators generally display with a "line" style. If you want to change the sytle from a line to a histogram, for example, you must double-click on the indicator (or select and right-click) and open the Colour/Style tab to change the optons for the selected plot. Repeat this process for each plot that you want to change.
Indicators that include an exponential moving average, and your MACD has three of them, require about five time as much data as the greatest EMA Periods parameter to generate an accurate result. For an MACD that means that you need at least 130 bars of data loaded prior to bar one of the visible chart. The same principle applies to an exploration - MetaStock will generally load about 30% more data than is specified by the greatest Periods parameter of any function used in the exp, but an EMA-based fuction or formula needs much more data than will normlly be loaded if just using the Load Minimum Records option.
Roy
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Rank: Newbie
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Thank you again for taking time on my questions.
I am used to couple of other applications that generates the same MACD. Now I have switched to MS 11 and I cannot get the same results. Even if the presentation is different I am struggling with the result of the actual lines.
I have changed the loaded amount of data with no change. I will upload two images see if you can see why I am not getting the expected MACD results.
Thank you again for your time.
Have changed the desired image above. Never mind the MA lines, it is the signal line that is not giving the expected results. This is MS11 result. http://www.neseco.com/ms11.jpg
Shahram
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Rank: Advanced Member
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Hi Shahram
It looks to me as though you are plotting the signal line as a histogram and the MACD as a line. Try swapping the styles for each plot and see what you get.
One thing I forgot to mention is that the standard MetaStock MACD() function bases the calculation on Periods parameters of 12.3333 and 25.6667 rather than 12/26. If the slightly different values and crossover points cause an unacceptable variation then you should construct a custom MACD indicator using 12 and 26 periods in the EMAs. Note that the MetaStock Mov() function does not use fractions in the Periods parameter, so if you were to use values of 12.3333 and 25.6667 you would get 12 and 25 as the effective Periods values.
Roy
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Rank: Newbie
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Hi Roy!
Thank you very much for all the assistance.
The 12,3 and 25,6 problem might be why I cannot get the exact same graphs as other applications.
The puzzling part is the signal value that just doesn't seam to be calculated the same way. For some reason my other charting application provide negative signal histogram for the last 10 days and MS just doesn't.
I will try to create my own MACD see if I can find where the calculations differ.
Once again, thank you for all the help.
Shahram
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Rank: Newbie
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Joined: 11/7/2009(UTC)
Posts: 9
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Roy!
Just found why I could not get the expected values.
I was apparently looking for MACD (DEMA-smoothed). This indicator is giving me the correct signal values. I just have to read up on what DEMA smoothed does!
:-)
thank you,
Shahram
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