The Volume-Weighted MACD HistogramThe related article is copyrighted material from Stocks & Commodities 2009 Oct
Macd-v
MAC-Z VWAP Indicator [LazyBear]This a modified MAC-Z using Z-VWAP. Since this uses VWAP, the signals are derived indirectly from both volume and price action.
I have also included a way to smooth MACZ-VWAP, you can enable it via options page.
Note that this will not work on any FX pair, as volume is not available.
Referenced indicators:
Z-distance from VWAP:
MAC-Z Indicator:
Z-Score:
Complete list of my indicators:
GDoc: docs.google.com
Chart:
Ergotic MACD Strategy This is one of the techniques described by William Blau in his book
"Momentum, Direction and Divergence" (1995). If you like to learn more,
we advise you to read this book. His book focuses on three key aspects
of trading: momentum, direction and divergence. Blau, who was an electrical
engineer before becoming a trader, thoroughly examines the relationship
between price and momentum in step-by-step examples. From this grounding,
he then looks at the deficiencies in other oscillators and introduces some
innovative techniques, including a fresh twist on Stochastics. On directional
issues, he analyzes the intricacies of ADX and offers a unique approach to help
define trending and non-trending periods.
Blau`s indicator is like usual MACD, but it plots opposite of meaningof
stndard MACD indicator.
Ergotic MACD This is one of the techniques described by William Blau in his book
"Momentum, Direction and Divergence" (1995). If you like to learn more,
we advise you to read this book. His book focuses on three key aspects
of trading: momentum, direction and divergence. Blau, who was an electrical
engineer before becoming a trader, thoroughly examines the relationship
between price and momentum in step-by-step examples. From this grounding,
he then looks at the deficiencies in other oscillators and introduces some
innovative techniques, including a fresh twist on Stochastics. On directional
issues, he analyzes the intricacies of ADX and offers a unique approach to help
define trending and non-trending periods.
Blau`s indicator is like usual MACD, but it plots opposite of meaningof
stndard MACD indicator.
MAC-Z Indicator [LazyBear]This indicator is a composite of MACD and Z-Score (requested by @ChartAt). The general idea is that counter-trend component of the Z-score is used to adjust/improve the trend component of the MACD. The advantage is that it is a more accurate and “assumption-free” and can more accurately describe how a market or stock actually works in a given time frame.
I have also added support to smooth out the MAC-Z using Laguerre filter (Thanks @TheLark for the excellent LMA). Note that smoothing removes the "noise" component additive of Z-Score, so you may miss some good signals. By default Laguerre smoothing is OFF, I suggest playing with the Gamma to see if you can find a proper trade-off value.
Theme credits --> @liw0
More info:
cssanalytics.wordpress.com
TheLark: Laguerre PPOA while ago I posted a more flexible MACD, known as PPO (See that post for details).
Yesterday I had a request by @ChartArt for a Laguerre MACD. Since I favor PPO to MACD, here it is!
Completely untested, and not at all price fit. Play with the numbers and leave a comment if you come up with an interesting combination or idea ;)
MACD Crossover MACD – Moving Average Convergence Divergence. The MACD is calculated
by subtracting a 26-day moving average of a security's price from a
12-day moving average of its price. The result is an indicator that
oscillates above and below zero. When the MACD is above zero, it means
the 12-day moving average is higher than the 26-day moving average.
This is bullish as it shows that current expectations (i.e., the 12-day
moving average) are more bullish than previous expectations (i.e., the
26-day average). This implies a bullish, or upward, shift in the supply/demand
lines. When the MACD falls below zero, it means that the 12-day moving average
is less than the 26-day moving average, implying a bearish shift in the
supply/demand lines.
A 9-day moving average of the MACD (not of the security's price) is usually
plotted on top of the MACD indicator. This line is referred to as the "signal"
line. The signal line anticipates the convergence of the two moving averages
(i.e., the movement of the MACD toward the zero line).
Let's consider the rational behind this technique. The MACD is the difference
between two moving averages of price. When the shorter-term moving average rises
above the longer-term moving average (i.e., the MACD rises above zero), it means
that investor expectations are becoming more bullish (i.e., there has been an
upward shift in the supply/demand lines). By plotting a 9-day moving average of
the MACD, we can see the changing of expectations (i.e., the shifting of the
supply/demand lines) as they occur.
Indicators: KaseCD & Kase Peak OscillatorI have included ports of 2 indicators from MT4 (not from the original commercial source). I couldn't cross check if these matched their commercial equivalents (you need to assume they don't!). If you own any of these in other platforms, appreciate if you could publish some comparison results here.
Kase Peak Oscillator is the difference between two trend measurements, one for rising markets and the other for falling markets. KCD is the PeakOsc minus its own average. So, KPO takes the place of a traditional oscillator and the KCD takes place of the traditional MACD.
Ms.Kase claims KCD is far more accurate than MACD.
More info:
- www.kaseco.com
- beathespread.com
Let me know if you have experience with the original indicators and are willing to help improve these clones. Thanks.
Indicator: Elder Impulse SystemAccording to Elder, "The Impulse System encourages you to enter a trade cautiously but exit fast, by identifying inflection points where a trend speeds up or slows down. This is the professional approach to trading, the total opposite of the amateur's style. Beginners jump into trades without thinking too much and take forever to get out, hoping and waiting for the market to turn their way."
The Impulse System is based on two indicators, a 13-day exponential moving average and the MACD-Histogram. The moving average identifies the trend, while the MACD-Histogram measures momentum. As a result, the Impulse System combines trend following and momentum to identify impulses that can be traded.
By default it uses your chart's time frame, but you can set it to any custom time frame via options page. Optionally, price bars can be color coded too.
More info:
stockcharts.com
Steps to import / use custom indicators from this chart:
PDF: drive.google.com
Indicators: Volume-Weighted MACD Histogram & Sentiment Zone OscVolume-Weighted MACD Histogram
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Volume-Weighted MACD Histogram, first discussed by Buff Dormeier, is a modified version of MACD study. It calculates volume-averaged Close price for finding the histogram.
More info:
www.moneyshow.com
Sentiment Zone Oscillator
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Sentiment Zone Oscillator, developed by Walid Khalil, is a complementing oscillator to VZO and PZO.
To quote Walid:
>> The sentiment zone oscillator (SZO) is a leading contrary oscillator that measures the extreme emotions of a single market or share.
>> It measures and defines both extremes, bullishness (overoptimism) and bearishness (overpessimism), that could lead to a change
>> in sentiment, eventually changing the trend of the time frame under study. The SZO was devised on the belief that after several waves
>> of rising prices, investors begin to get bullish on the stock with increasing confidence since the price has been rising for some time.
>> The SZO measures that bullishness/bearishness and marks overbought/oversold levels.
SZO has its own oversold/overbought bands. Also, when SZO goes above 7, it indicates extreme optimism. When the SZO goes below -7, it indicates extreme pessimism.
More info: www.traders.com
How to import / use custom indicators from this chart?
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PDF: drive.google.com
MacD Custom Indicator-Multiple Time Frame+All Available Options!This MacD Indicator has every feature available. See First Post for Details.
Indicator: Schaff Trend Cycle (STC)Another new indicator for TV community :)
STC detects up and down trends long before the MACD. It does this by using the same exponential moving averages (EMAs), but adds a cycle component to factor instrument cycle trends. STC gives more accuracy and reliability than the MACD.
More info: www.investopedia.com
Feel free to "Make mine" this chart and use the indicator in your charts. Appreciate any feedback on how effective this is for your instrument (I have tested this only with BTC).
For people trading BTC:
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Try 3/10 or 9/30 for MACD (fastLength/slowLength). They seem to catch the cycles better than the defaults. :)
Indicator: 4MACD 4MACD allows you to see all facets of the current condition or that of a coming change in one pane. You can see the direction of the current momentum. You can see the initiation of a change; you can then see that change occur as the price and momentum move in an opposite direction.
Note that you still need to use other indicators like BB, OBV for confirmation. More details at www.omniumsoftware.com
BTW, I am not a trader, but a coder. I spend lot of time here at TV and have learnt a lot about how pro-traders think.
This is my way of giving back to TV community. Hope you find this useful (do check out my other indicators). Appreciate any comments / feedback.