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I am trying to make an oscillator that combines RSI, MACD, and stochastics into one. Then, I want to optimize the input parameters for a particular market to show the most overbought and oversold areas. Can this be done and how? Thanks.
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Sounds like an intersting idea, let's see what can be done.
Here are my ideas...
I was thinking of simply adding the values of the three indicators but because the stochastic and macd consist of multiple values there is an issue of which ones to use. MACD is usally a small number, relative to the stochastic and RSI, so we need a way to normalize the indicators, if we want to add them up. Other wise the MACD component will never be seen.
Stochastic goes from -100 to +100
RSI goes from -75 to +75
MACD varies between -1 and +1
If you give me an idea of how you want to combine the three indicators, given the above issues, maybe we can identify a next step. -
Re: Reply to post 'Combination Oscillator'
The objective would be to combine these indicators into one. Optimize each
of the inputs to give the best reading for a particular market. The
resultant oscillator would be give buy/sell signals when they were at the
extremes of 10% and 90%. Can this be done?
----- Original Message -----
From: <[email protected]>
To: <[email protected]>
Sent: Tuesday, December 02, 2003 8:53 AM
Subject: Reply to post 'Combination Oscillator'
> Hello drscheck,
>
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