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pinto View Drop Down
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Joined: 29 Aug 2008
Posts: 2 		Post Options Post Options   Quote pinto Quote  Post ReplyReply Direct Link To This Post Topic: macd histogram scan
    Posted: 29 Aug 2008 at 10:43am

Hi,

I would like to run a scan that tells me when a weekly macd histogram first ticks upward after several weeks decent.


Can anyone help please?

tia  Smile          Pinto
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maximo View Drop Down
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Posts: 232 		Post Options Post Options   Quote maximo Quote  Post ReplyReply Direct Link To This Post Posted: 31 Aug 2008 at 8:40pm
Hi Pinto,
 
What a great idea for  a scan!  This finds the start of all new uptrends and
often well before the MACD crosses over.
 
I created a simplified MACD indicator which is 99.5% the same and it checks for
this signal:   3 descents  before 1 ascent of the histogram and this must be
below the zero line.   Add the following new indicator and create a new scan,
select 'is an indicator signal' and weekly or daily whichever you choose.
 

{ Trend MAC }

[Description:="Simplified MACD"]

a1 := input("Short MA",12,1);

a2 := input("Long MA",26,1);

a3 := input("Signal period",9,1);

[color=blue]

mac:=(C*ma(C,a1,E)-C*ma(C,a2,E))*.20;

mac;

[color=red]

ma(mac,a3,E)

[Name=Histogram; linestyle=Histogram; color=black]

histogram:=mac-ma(mac,a3,E);

histogram;

[Name=" "; linestyle=Marker; marker=Long]

descent3:=if(histogram < 0 and histogram > hist(histogram,1) and hist(histogram,1)<=hist(histogram,2) and hist(histogram,2)<=hist(histogram,3) and hist(histogram,3)<=hist(histogram,4),1,undefined);

descent3;

 
 
 


Edited by maximo - 01 Sep 2008 at 3:54pm
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pinto View Drop Down
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Posts: 2 		Post Options Post Options   Quote pinto Quote  Post ReplyReply Direct Link To This Post Posted: 02 Sep 2008 at 8:02am
Hi Maximo,
thanks for that.

I have built the indicator and scan and it certainly shows up interesting things, however, it misses some of the things I want.
It is probably my lack of knowledge I suspect -------- here is an example of what I want it to find.

If you look at a weekly chart of ipl ---- you will see that the weekly macd jumped on the week ending 22/8/08 ------------- the scan misses that signal.
Is it because there are not enough (consistent) weeks in decline before that?
It does, however, give a signal on the week ending 1/8/08.

The scan I want would not be the only criteria for a long entry as many times the weekly macd will begin an upward movement whilst the price is still in decline. I have noticed that when this happens a lot of the time the price will begin an upward movement when the macd gets somewhat closer to the line. This is often the start of a solid up trend.

Along with macd I look at momentum indicators on a shorter time frame as well as financial strength ---- it doesn't often happen but when the 3 are in alignment it really can be party time.

Pinto
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maximo View Drop Down
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Posts: 232 		Post Options Post Options   Quote maximo Quote  Post ReplyReply Direct Link To This Post Posted: 02 Sep 2008 at 5:45pm

Yes I could see exactly from your example, thanks that helps.

I replaced the code with original MACD formula and made the histogram detection a fraction flexible. ie. 99.9% is close enough to allow a signal.   IPL was missed from the weekly scan because the ascent bar of the histogram was within 1% higher of the previous bar.  It's now close enough to pass the scan.   I really like this entry signal and speaking of financial strength (TA wise)  it would go well with those closing above the 41 MA weekly & 200 MA daily.   Can see by looking at a few charts that at least 2 out of 3 signals result in a price swing.     
 

{ MACD+ }

[Description:="MACD+ Momentum Swing Signal"]

a1 := input("Short MA",12,1);

a2 := input("Long MA",26,1);

a3 := input("Signal period",9,1);

r1 := 2/(a1+1);

r2 := 2/(a2+1);

ma12 := C*r1 + previous(C)*(1-r1);

ma26 := C*r2 + previous(C)*(1-r2);

res := wait(ma12 - ma26,25);

signal := ma(res,a3,E);

[Name=MACD; color=dodger blue]

res;

[name=Signal; linestyle=solid; color=red]

signal;

[color=navy]

0;

[Name=Histogram; linestyle=Histogram; color=black]

histogram:=res - signal;

histogram;

[Name=" "; linestyle=Marker; marker=Long]

descent3:=if(histogram < 0 and histogram*0.999 > hist(histogram,1) and hist(histogram*0.999,1) < hist(histogram,2) and hist(histogram*0.999,2) < hist(histogram,3) and hist(histogram,3) < hist(histogram,4),1,undefined);

descent3;



Edited by maximo - 03 Sep 2008 at 3:07am
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