Hi Rich...
Long time no talk.. Yes, there are 2 versions of the MACD equation. Richard's and the one I gave you. For Richard's, I'm not sure what to do with it <gg>..
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Let's take some time a figure out the MACD for ya...
FOR MSWIN:
Here is my equation for the MACD (13,34,89)
Mov(C,13,E)-Mov(C,34,E)
Now.. Once you created this new indicator in the indicator builder, then go to your favorite chart. Once you the chart opened, plot the new MACD indicator. Once plotted, double click on the graph (line itself).. Click on the tab named color/style (dialogue box). For Style: Choose the histograph type. Looks like this ~ <g>
Then click on the "horizontal line" tab.. Type in 0, and then click ADD. This will add the 0 trigger line.
click on apply, and it should be done. The MACD should be shown as a histograph with a zero trigger line.
Now, you want the signal line. (89 day MA). Go to the indicator box in the toolbar. Select moving average and DRAG it ON TOP of the MACD plot. It will pop up a dialogue asking for the period of moving average. Select 89, and you should have it. Change the color of the signal line if you want.
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For me, personally, I don't look at the signal line. I just look at the histograph itself. Looking at:
1) if it is above/below the 0 trigger line.
2) the slope. Divergence/convergence (price moving with the histograph or opposite)
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Okay.. Now for the DNS. You can open a chart for oracle or sun. ORCL/SUNW.
You should have gotten a DNS 8 for both stocks for friday's data..
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I hope this cleared up everything. If not, please post again.. I want you to able to finally get started w/ the macd. Very good beginner's indicator and easy to use. Many parameters you can play with too.
13,34,89 for long-term
8,17,9 for short term.
I've also seen 5,34,89
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Rich, wish you luck... If you are really really stuck. Call me up. Email me and I'll give you my phone number...
Chris |
