MetaStock MACD

[Scrutch]

Hello,

Just got eSignal running and I have a need to write the MACD formula that eSignal is using. I'm a bit confused as to how to set up the histogram and the moving averages.

Is the histogram just the Mov(C,12,S)-Mov(C,26,S)?

Also would like to know how the two moving averages are calculated.

Scrutch

[JayF]

Scrutch,

Are you looking for the EFS formula for the MACD + Histogram? Or are you asking how to add the MACD study + Histogram into eSignal?

If you need the former, then you will find this information in the locally installed file \eSignal\Formulas\Library\macd.efs

To do the latter, select Chart Options - Basic Studies -> MACD



This should have the histogram on it by default, however if it does not, then select Chart Options - Edit Studies... then select the MACD study from the drop-down box. Then put a check in the box next to Display in the Histogram frame.

[Scrutch]

Hi Jay,

Thanks for the response... What I'm trying to do is write code so I can show this indicator in MetaStock. I'm not a MetaStock programmer but think I can handle this if I can just figure out what the Histogram is and how the two moving averages are calculated.

I have MetaStock open and eSignal open with the MACD histogram plotted on both charts. The values seem to be a bit different from one to the other but it also appears that I am not getting the same data at the same time between the two programs. MetaStock and eSignal are both set to 1 min bars and I'm trying to see if the values are the same.

Thanks,
Scrutch

[ACM]

Re: Reply to post 'MetaStock MACD'

Scrutch
The histogram is the difference between the values of the MACD and the
Signal line.
Alex

[JayF]

Scrutch,

The default MACD in eSignal is calculated as such.

MACD Line = (12 period exponential MA based off of the close) - (26 period exponential MA based off of the close)
Signal Line = 9 period simple MA based off of the MACD Line
Histogram = MACD Line - Signal Line

Any difference you may be seeing, is most likely due to different period MA's or Signal Line settings or whether a simple, exponential, etc MA is used or possibly the source for the MA's. If you check the Edit Studies window in eSignal, it will summarize what settings are selected.

[gspiker]

By default the signal line is calculated as an EMA in eSignal. Most other software calculates it as a simple MA. There are historical reasons eSignal is choosing to keep it this way, however you can override the default in the edit study box, as JayF describes.

I would look at this as the first cause of divergance between the two results.

G

[Scrutch]

Thanks for all the response... This makes life a lot eaiser...

Ok, I'm getting close now...

I have:
MACD 12 and 26 set up as an expoential average
Signal as a 9 simple average of the MACD
Histogram as MACD minus Signal

At least this is a lot closer than I've been before. Looking at the edit studies I thought that eSignal was using all simple averages to calculate the entire formula. I still don't have the same values between MS and eSig but they are getting close. I'll keep at it and really appreciate all the help that has been bestowed upon me. Very friendly group...

Regards,
Scrutch

[Scrutch]

THANKS ALL:

For some reason my MetaStock data is now in sync with eSignal and all three values are an exact match...

Thanks to all involved,
Scrutch