MACD query:
Can someone please explain the difference between these two MACD calculations: say we have a typical 8 17 9 macd we want to calculate, I have seen two different formulas used to calculate them as follows:
Assume the same inputs:
mp1:=Input("Short MA",1,377,8);
mp2:=Input("Long MA",1,377,17);
mp3:=Input("Signal MA",1,377,9);
Version A
(Mov(C,mp1,E)-Mov(C,mp2,E))-(Mov((Mov(C,mp1,E)-Mov(C,mp2,E)),mp3,E))
Version B:
Mov(Mov(C,mp1,E)-Mov(C,mp2,E),mp3,E);
I believe version A is the correct one, and I can corroborate this with the graph of the macd at www.wallstreetcity.com. What the heck is version B that I have seen quite frequently? If you try and optimize the values, yields some strange values, putting you in trades on the wrong side of the macd, that 'happen' to be profitable! Testing both functions thorougly with optimized results for all 3 paramteters has formula A winning B by more than 2 to 1 in almost all cases, and is consistent. Any thoughts on what the heck B is then?
Regards and thanks.
Oh, and by the way, if anyone would like to share their cash generating machine formulas with the rest of us to help out in this crazy market, I'd be grateful. I haven't actually started trading with MS yet, but I am still learning. Is anyone finding that using MS has made a significant difference in thier trading/investing profits? |
