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January 2012 Stocks and Commodities Traders Tips


Reversing MACD :

AIQ Version:

Original article by Johnny Dough
AIQ Code by Richard Denning

The AIQ code for for Johnny Dough’s reverse MACD functions and indicators from the article, “Reversing MACD”, is provided at the web site noted below.
In Figure 1, I show a chart of Green Mountain Coffee Inc. with the two PMAC Indicators and the MACD indicators. The cyan line is the PMACzero, which is the price tomorrow that would have to be attained for the MACD to equal zero. This indicator has wide swings because sometimes a big move in price is needed to bring the MACD back to zero. The purple line shows the PMACeq indicator which shows tomorrow’s price that would make MACD the same as it was today. It stays close to the current price. The lower panel shows the MACD (white) and the MACD signal (yellow) indicators.

Captions:
Figure 1: PMACzero (cyan) and PMACeq (purple) indicators on a chart of Green Mountain Coffee Inc. with MACD (white) and MACD signal line (yellow) indicators (lower panel).

EDS Code for Reversing MACD
Reversing MACD .EDS
(right click and choose Save As)


 

Traders Studio Version :

Original article by Johnny Dough
Traders Studio Code by Richard Denning

The TradersStudio code for Johnny Dough’s reverse MACD functions and indicators from the article, “Reversing MACD”, is provided at the web sites noted below. The following code files are provided in the download from the websites:

  • Function: “PMACeq” computes the price for tomorrow that will make the MACD tomorrow equal to the value it had today
  • Function: “PMAClevel” computes the price for tomorrow that will make the MACD equal to the the level that is input
  • Indicator Plot: “PMAC_Ind” for displaying the two PMAC Indicators, PMACeq and PMACzero on a chart

In Figure 1, I show a chart of Apple Inc. with the two PMAC Indicators and the MACD indicators. The white line is the PMACzero, which is the price tomorrow that would have to be attained for the MACD to equal zero. This indicator has wide swings because sometimes a big move in price is needed to bring the MACD back to zero. The yellow line shows the PMACeq indicator which shows tomorrow’s price that would make MACD the same as it was today. It stays close to the current price. The lower panel shows the MACD (light green) and the MACD signal (dark green) indicators.

Captions:
Figure 1: PMACzero (white) and PMACeq (yellow) indicators on a chart of Apple Inc. with MACD (light green) and MACD signal line (dark green) indicators (lower panel).

Traders Studio Code for Reversing MACD:
ReversingMACD Dec 2011.zip
(right click and choose Save As)

 

 

 

 

 

 

 

 

 

 

 

 

 

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