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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: sidney-8 who wrote (51842)	5/23/2000 4:53:00 PM
From: HairBall	Read Replies (1) \| Respond to of 99985

mmcnally: I am not a good one to ask this question, as I am self taught. So, I can't really give you a reference. I can only tell you I have come up with my own formulas based on many hours of strategizing, trial & error and back testing. Hopefully others may have some kind of answer for you, but I think putting in some hours is going to be your best solution. That means testing alterations of the MACD with various stocks, indexes and over various time intervals as well. Simply put, a lot of work... Regards, LG

To: sidney-8 who wrote (51842)	5/23/2000 5:39:00 PM
From: flatsville	Respond to of 99985

mike--I've wondered the same thing myself. Looked far and wide and the closest I've come to a general discussion of this is here: stockcharts.com The most popular formula for the "standard" MACD is the difference between a security?s 26-day and 12-day exponential moving averages. This is the formula that is used in many popular technical analysis programs, including StockCharts.com charts, and quoted in most technical analysis books on the subject. Appel and others have since tinkered with these original settings to come up with a MACD that is better suited for faster or slower securities. Using shorter moving averages will produce a quicker, more responsive indicator, while using longer moving averages will produce a slower indicator, less prone to whipsaws. For our purposes in this article, the traditional 12/26 MACD will be used for explanations. Later in the indicator series, we will address the use of different moving averages in calculating MACD. In part III you get this blurb--but no real guidance or methodology: stockcharts.com MACD can be applied to daily, weekly or monthly charts. MACD represents the convergence and divergence of two moving averages. The standard setting for MACD is the difference between the 12 and 26-period EMA. However, any combination of moving averages can be used. The set of moving averages used in MACD can be tailored for each individual security. For weekly charts, a faster set of moving averages may be appropriate. For volatile stocks, slower moving averages may be needed to help smooth the data. No matter what the characteristics of the underlying security, each individual can set MACD to suit his or her own trading style, objectives and risk tolerance. Still, I think the four part discussion is very useful and generally well written. You might email the author, Arthur Hill, under Send Us Your Feedback!. Please post if he responds.

To: sidney-8 who wrote (51842)	5/23/2000 9:18:00 PM
From: Les H	Respond to of 99985

You might try also Systems & Forecasts web site since Gerald Appel defined the MACD system: systemsandforecasts.com Sample use of MACD at systemsandforecasts.com There are a number of instructional pages on MACD on sites such as Equis and WallStreetCity.