3 periods MACD

[tsunamizawa]

Every traders know MACD(12,26), but not every traders know the others two ( MACD(6,19) and MACD(19,39). Combining the 3 periods MACD in one chart, may look very interesting.
quote from Gerald Appel book ;
You should maintain at least two MACD combinations a faster one for buying
AND a slower one for selling.

When market trends are very positive, Buy very fast AND Sell very slow. You can
employ the 6–19 combination for buying, OR you can employ the somewhat more
reliable 12–26 combination. The 19- to 39-Day combination is used for selling.

When market trends are neutral to somewhat positive, Buy fast AND Sell slow.
Use the 12–26 combination for buying. Use the 19–39 combination for selling.

When market trends are clearly negative, Buy fast AND Sell fast. You can use the
12–26 MACD combination for both buying AND selling, in which case you will
sometimes be selling before the slower-moving 19- to 39-Day MACD has
crossed from below to above 0. However, unless a stop-out takes place, the
12–26 MACD lines should generally rise above 0 as a precondition for a Sell.

AFL MACD TMS for Amibroker user. You may converse to Meta .
http://www.mediafire.com/view/4h9hvvnar65we4t/AFL MACD TMS.docx

 

[tsunamizawa]

YHOO with MACD TMS

 

[tsunamizawa]

GOOG with MACD TMS

 

[tsunamizawa]

Every traders know MACD(12,26), but not every traders know the others two ( MACD(6,19) and MACD(19,39). Combining the 3 periods MACD in one chart, may look very interesting.
quote from Gerald Appel book ;
You should maintain at least two MACD combinations a faster one for buying
AND a slower one for selling.

When market trends are very positive, Buy very fast AND Sell very slow. You can
employ the 6–19 combination for buying, OR you can employ the somewhat more
reliable 12–26 combination. The 19- to 39-Day combination is used for selling.

When market trends are neutral to somewhat positive, Buy fast AND Sell slow.
Use the 12–26 combination for buying. Use the 19–39 combination for selling.

When market trends are clearly negative, Buy fast AND Sell fast. You can use the
12–26 MACD combination for both buying AND selling, in which case you will
sometimes be selling before the slower-moving 19- to 39-Day MACD has
crossed from below to above 0. However, unless a stop-out takes place, the
12–26 MACD lines should generally rise above 0 as a precondition for a Sell.

AFL MACD TMS for Amibroker user. You may converse to Meta .
http://www.mediafire.com/view/4h9hvvnar65we4t/AFL MACD TMS.docx

signal ( 19,39, 16 )
should be
signal ( 19, 39, 9 )
for details, read Gerald Appel book Tecnical Analysis Power Tools for Active Investors, start page 165....

 

[tsunamizawa]

AAPL GOOG YHOO testing with data from 2000 to 2012
blue area is the area the most number of stocks will stay .
yellow area is the area the stocks have the highest possibility to reverse.

 

[NVP]

agreed

the Macd is very under rated and underused as as tool

everyone uses the default settings .........thats like buying a car and only using 1 gear

N

 

[tsunamizawa]

agreed

the Macd is very under rated and underused as as tool

everyone uses the default settings .........thats like buying a car and only using 1 gear

N

let see what Chip Anderson ( stockcharts.com ) says :

http://blogs.stockcharts.com/chartwatchers/2013/09/the-mighty-mo-momentum.html

 

[tsunamizawa]

AFL MACD TMS for amibroker user ( free download )
has been downloaded 542 times.

 

[tsunamizawa]

SNP with 3 periods MACD and 3 charts ( bar, candle, cloud )

 

[tsunamizawa]

free download

downloaded almost 2000 times
AFL MACD TMS
free download
http://www.mediafire.com/view/4h9hvv..._MACD_TMS.docx

 

[Dinos]

Or another variation of the theme, using 2 MACD's fast and slow and only taking trades when both agree, thus reducing the element of whipsaw and exiting when the confluence of both MACD breaks.

 

[tsunamizawa]

downloaded almost 2500 times
AFL MACD TMS
free download
http://www.mediafire.com/view/4h9hvv..._MACD_TMS.docx

photo sharing websites

 

[louistrader]

Or another variation of the theme, using 2 MACD's fast and slow and only taking trades when both agree, thus reducing the element of whipsaw and exiting when the confluence of both MACD breaks.

I have heard and seen this approach before. My issue with it is that if you're looking for both to agree, you're really just trading the MACD with the slower setting as it is the slower one that is ultimately making you decide to enter a position.

Does anyone know when or how the industry standard settings came to be?

 

[timsk]

. . . Does anyone know when or how the industry standard settings came to be?

Hi louistrader,
Generally speaking, most 'standard' settings are the ones recommended by the technician who developed the indicator. For example, the standard settings on Bolly Bands are those recommended by John Bollinger and the standard settings on RSI are those recommended by Welles Wilder. On this basis, my assumption would be that the standard settings for MACD are those recommended by its developer - Gerald Appel.
Tim.

 

[louistrader]

Hi louistrader,
Generally speaking, most 'standard' settings are the ones recommended by the technician who developed the indicator. For example, the standard settings on Bolly Bands are those recommended by John Bollinger and the standard settings on RSI are those recommended by Welles Wilder. On this basis, my assumption would be that the standard settings for MACD are those recommended by its developer - Gerald Appel.
Tim.

A very informative post. Thank you, Tim.

 

[tsunamizawa]

Hi louistrader,
Generally speaking, most 'standard' settings are the ones recommended by the technician who developed the indicator. For example, the standard settings on Bolly Bands are those recommended by John Bollinger and the standard settings on RSI are those recommended by Welles Wilder. On this basis, my assumption would be that the standard settings for MACD are those recommended by its developer - Gerald Appel.
Tim.

let's see what Larry William say about time frame;

What time frame to use?
In 1973 when I first wrote about %R, initially I used a 10 or 14 day window as the time frame to construct
the index, using the highest high, lowest low of that window. I said at that time;
“…use the ten day basis for %R… there are other time periods to use such as 25 days, etc.
Choose whichever seems to be working best on the current cycles. That’s the key… extracting
the correct time period. People are always asking me for a uniform time period… unfortunately
there isn’t any. If pressed, I tell them that a twenty day period is optimum…”