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And if the traditional MACD could be normalized and get Maximum and Minimum Values (+ 100, - 100) and get OverBought and OverSold levels too ?
For this, we have to created a normalized MACD.
Let's take a traditional MACD (12,26,9).
Let's say that the Maximum and Minmum Values of the Normalized MACD will be + 100 and - 100.
How to do that ?
The tradional MACD vary in values. All the time.
Let's consider a certain period of time = a certain historical period of markets. Let's say the last 120 periods of the MACD.
Value 1 = the Maximum Value of the MACD during the last 120 periods.
Value 2 = the Mimimum Value of the MACD during the last 120 periods.
Value 3 = the Absolute Value of Value 1.
Value 4 = the Absolute Value of Value 2.
Case 1 : Value 3 >= Value4 then Value 1 = + 100.
Case 2 : Value 3 < Value4 then Value 2 = - 100
If Case 1 :
Value 5 = New Normalized MACD
= current value of traditional MACD(12,26,9)
multiplied by 100
divided by Value3
If Case 2 :
Value 5 = New Normalized MACD
= current value of traditional MACD(12,26,9)
multiplied by 100
divided by Value4
Plot also the SignalLine and Histogram.
Add Maximum and Minimu Study Values at + 100 and - 100
Plot OverBought and OverSold Levels.
Who can program it ?
Olivier
/ rrent Value 1 / Value
Compare the Maximum (Positive) and
And if the traditional MACD could be normalized and get Maximum and Minimum Values (+ 100, - 100) and get OverBought and OverSold levels too ?
For this, we have to created a normalized MACD.
Let's take a traditional MACD (12,26,9).
Let's say that the Maximum and Minmum Values of the Normalized MACD will be + 100 and - 100.
How to do that ?
The tradional MACD vary in values. All the time.
Let's consider a certain period of time = a certain historical period of markets. Let's say the last 120 periods of the MACD.
Value 1 = the Maximum Value of the MACD during the last 120 periods.
Value 2 = the Mimimum Value of the MACD during the last 120 periods.
Value 3 = the Absolute Value of Value 1.
Value 4 = the Absolute Value of Value 2.
Case 1 : Value 3 >= Value4 then Value 1 = + 100.
Case 2 : Value 3 < Value4 then Value 2 = - 100
If Case 1 :
Value 5 = New Normalized MACD
= current value of traditional MACD(12,26,9)
multiplied by 100
divided by Value3
If Case 2 :
Value 5 = New Normalized MACD
= current value of traditional MACD(12,26,9)
multiplied by 100
divided by Value4
Plot also the SignalLine and Histogram.
Add Maximum and Minimu Study Values at + 100 and - 100
Plot OverBought and OverSold Levels.
Who can program it ?
Olivier
/ rrent Value 1 / Value
Compare the Maximum (Positive) and