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Strategies & Market Trends : TC2000 Users Technical Analysis Forum

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To: NHBob who wrote (1068)9/29/1998 12:23:00 PM
From: Gary Burton  Read Replies (2) of 3291
 
Bob--Go to your V3 if you have one--put in 5/17 period MACD--then change scaling to log (if arithmetic was the one you were using). Note how the shape of the MACD changes. The difference becomes very noticeable when you then go to the DJ-30 chart going back many years using a monthly chart. The log based MACD shows a material divergence. The arithmetic one does not and instead shows a much higher peak in the MACD in 97/98 area than say 86/87. Very different message sent depending on which scaling you use.
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