Forex Factory (http://www.forexfactory.com/forum.php)
-   Platform Tech (http://www.forexfactory.com/forumdisplay.php?f=69)
-   -   The real macd.. not MT4's (http://www.forexfactory.com/showthread.php?t=69409)

CounterTrend Feb 9, 2008 2:23pm | Post# 1

The real macd.. not MT4's
 
Hello,

Helpful fellow members, could someone post the real MACD indicator not the one comes with MT4. The MT one looks rather ugly. Appreciate response in advance.

Trader KGB Feb 9, 2008 3:06pm | Post# 2

1 Attachment(s)
Here you go. It's not just the looks, the MT4 default MACD indicator actually calculates it differently/incorrectly.
MACD True.mq4

forexmoments Feb 9, 2008 5:10pm | Post# 3

Here you go. It's not just the looks, the MT4 default MACD indicator actually calculates it differently/incorrectly.
I don't understand why Metatrader does that. A disgrace!

Leigh Feb 9, 2008 6:18pm | Post# 4

Macd alert
 
1 Attachment(s)
Hello,

Helpful fellow members, could someone post the real MACD indicator not the one comes with MT4. The MT one looks rather ugly. Appreciate response in advance.
This one has an alert and seems very close to the "Real Macd " indicator posted.
What do you think?

Cheers.
Click to Enlarge

Name: Macd compare.JPG
Size: 90 KB

Trader KGB Feb 9, 2008 7:01pm | Post# 5

This one has an alert and seems very close to the "Real Macd " indicator posted.
What do you think?

Cheers.
Looks good, post it up

CounterTrend Feb 9, 2008 7:10pm | Post# 6

Here you go. It's not just the looks, the MT4 default MACD indicator actually calculates it differently/incorrectly.
Viva! Fast response, thank you. I really hate MT4 platform for these tiny things.

Leigh Feb 10, 2008 12:43am | Post# 7

1 Attachment(s)
Looks good, post it up
Here you go.
MACD_ColorHist_Alert 12 26 9 LA .mq4

BurgerKing Feb 10, 2008 5:00am | Post# 8

No wonder why I find EA based on MACD crossing is a failure. Its all based on a wrong MACD!

I will recode my MACD crossing EA using this "corrected" MACD formulae.

Thanks for enlightening me on this issue!

007 Feb 10, 2008 5:38am | Post# 9

I downloaded and run, then I don't see any major issue with Metatrader MACD. It just tends to give a cross over signal faster than true MACD (sometimes).

CounterTrend Feb 10, 2008 7:09am | Post# 10

Here you go.
Thanks much!

forexmoments Feb 10, 2008 9:22am | Post# 11

No wonder why I find EA based on MACD crossing is a failure. Its all based on a wrong MACD!
LOL!!! Exactly what I thought. Can't believe this news, quite shocking!

Trader KGB Feb 10, 2008 9:52am | Post# 12

1 Attachment(s)
I downloaded and run, then I don't see any major issue with Metatrader MACD. It just tends to give a cross over signal faster than true MACD (sometimes).
It's much more than that. The default MT4 MACD indicator lacks the fast signal line (instead of showing the fast signal line, it gives you a histogram of it). This is basically excluding half of the indicator itself, and you can no longer see the crossing of the fast/slow lines clearly.

The MACD histogram, which normally represents the difference between the signal lines (the underlying strength of the trend), instead just shows the outline of the non-existent fast signal line (not nearly has helpful).
Click to Enlarge

Name: gj.gif
Size: 7 KB

achandrasek Feb 10, 2008 2:59pm | Post# 13

The difference is only visual display, numbers are exactly same. I can see same information from both.

For EAs: As for EAs are concerned, there is absolutely no difference. EAs just use the MACD and Signal numbers and don't have display visualization problems! So, don't blame the MT4 MACD for the failure of that method used in EA!

chandra

Trader KGB Feb 10, 2008 3:40pm | Post# 14

The difference is only visual display, numbers are exactly same. I can see same information from both.

For EAs: As for EAs are concerned, there is absolutely no difference. EAs just use the MACD and Signal numbers and don't have display visualization problems! So, don't blame the MT4 MACD for the failure of that method used in EA!
I disagree. The criticisms are warranted, it is not just visual, the histograms are different. If you're using a system/EA that relies upon the MACD histogram (which I do), the default MT4 MACD indicator is of no use.

CounterTrend Feb 10, 2008 4:30pm | Post# 15

1 Attachment(s)
See how the true MACD on a 5M chart chosen randomly with up and down movements caught changes in sub-trends, giving you room enter / exit at better price. while MT macd still show bullish or bearish movement for long time of period.. and when it turns, the move has already completed.

Not saying that MACD is a trading system on its own. Just giving example of why MT macd is a failure.
Click to Enlarge

Name: macd.gif
Size: 63 KB

Trader KGB Feb 10, 2008 6:53pm | Post# 16

See how the true MACD on a 5M chart chosen randomly with up and down movements caught changes in sub-trends, giving you room enter / exit at better price. while MT macd still show bullish or bearish movement for long time of period..
The red lines you added appear to identify the fast/slow crosses, which technically are identical in both MACDs. Keep in mind, the blue MA line on the true MACD is exactly the same as the green histogram on the default MACD. When the red & blue MAs cross on the true MACD, it's equivalent to the red MA line crossing the green histogram on the default MACD. There is no lag time with respect to crosses between both indicators, they are identically timed.

This difference comes into play when you compare just histograms - one represents an MA line (incorrect), whereas the other correctly represents the difference between MA lines. This is especially important if one trades MACD histogram divergences (high probability setups).

CounterTrend Feb 10, 2008 7:29pm | Post# 17

Thanks for the explaination! Afterall, I am not a great techie but learning stuff every day.

I am a big fan of trading divergences, so you say the true MACD is better suited for divergences?

Trader KGB Feb 10, 2008 7:53pm | Post# 18

so you say the true MACD is better suited for divergences?
Right. The default MACD is not showing you the correct histogram. Good luck in your trading!

Phil_GMT Feb 10, 2008 10:17pm | Post# 19

Thanks, I needed that MACD_True...

Phil

Classic5000 Mar 20, 2008 12:10am | Post# 20

Can somebody tell me how to get those indicators to work? I put them in my experts folder but when I try to use them they simply do not show on my charts.. Help would be appreciated.

magnumfreak Mar 20, 2008 1:26am | Post# 21

Can somebody tell me how to get those indicators to work? I put them in my experts folder but when I try to use them they simply do not show on my charts.. Help would be appreciated.
place them in your experts/indicators folder then restart metatrader. they should show on your list then. These are indicators and not expert advisors.

Classic5000 Mar 21, 2008 1:36pm | Post# 22

place them in your experts/indicators folder then restart metatrader. they should show on your list then. These are indicators and not expert advisors.
Thanks, my bad. All works now.

hanover Mar 21, 2008 4:36pm | Post# 23

Here you go. It's not just the looks, the MT4 default MACD indicator actually calculates it differently/incorrectly.
KGB, you are correct. I hadn't noticed this before. Thanks for pointing it out.

Here is what appears to be happening (differences in bold typeface):

Traditional MACD:
MACD = EMA(12,close) – EMA(26,close) [plotted as a line]
Signal = EMA(9,MACD) [plotted as a line]
Histogram = MACD – Signal [plotted as a histogram]

MT4's MACD:
MACD = EMA(12,close) – EMA(26,close) [plotted as a histogram]
Signal = SMA(9,MACD) [plotted as a line]

I've checked a few internet TA resources (list here: http://www.forexfactory.com/showthread.php?p=1810688) and they all seem to agree that the signal line should be an EMA of the MACD line. Metaquotes is the one exception, using SMA.

David

Zen Mar 21, 2008 9:57pm | Post# 24

Whoa, guys...this just make me start to wonder... if the other MT's indicator, such as Moving Averages and so on, are also incorrect. Has anybody ever check them out?

Haystack Dec 23, 2008 12:26am | Post# 25

Indicators that are "not correct"
 
There isn't any "not correct" in the code of an indicator unless you coded it and it's not doing what you want. Indicators are developed to do different things. Even most Moving Average indicators allow you to choose the type of MA you want... Simple, Exponential, etc... calculate on Open price, Close price, High/Low, etc. If you're not happy with how an indicator works, then find one that makes you happy... there are thousands available. Or, you can do what I did and learn to code MQL4 and develop your own.

Oksana17 Dec 28, 2008 9:23pm | Post# 26

Whoa, guys...this just make me start to wonder... if the other MT's indicator, such as Moving Averages and so on, are also incorrect. Has anybody ever check them out?
I think the MA calculations are correct...I did calculate the simple, exponential, etc. manually and it looked correct to me.

fxxx Dec 28, 2008 10:59pm | Post# 27

2 Attachment(s)
Right. The default MACD is not showing you the correct histogram. Good luck in your trading!
Trader KGB, do you know what you talking about?
do you know difference between Macd and OsMA at all?
you messing-up Appel's(macd) with oranges

as many people already told you: standard mt4 macd is absolutely correct, it presented as histo :

macd: ema fast - ema slow
osma: macd - signal ma (difference between macd and sig.ma)

sometimes osma might be called macd histo where macd line, signal line and osma histo presented in one indicator

mt4 macd signal line is sma instead of common (and original Gerald Appel's) ema; reason: 1) sma snoozing smoother (that what signal ma also intended to do - it bit slower as sig.ma but less bumpier); 2) just to be different (guys who made this soft (one of the best in the world) not a bunch of idiots - they know what they doing (better than some users), and can allow themself to be a bit different)

here's macd with variable settings - you can choose watewer ma mode, price lines, or histo you like
Click to Enlarge

Name: macd osma histo.gif
Size: 20 KB
MACD_OsMA_4ColorH_2LVar_mtf.mq4

Oksana17 Dec 29, 2008 3:05am | Post# 28

Trader KGB, do you know what you talking about?
do you know difference between Macd and OsMA at all?
you messing-up Appel's(macd) with oranges

as many people already told you: standard mt4 macd is absolutely correct, it presented as histo :

macd: ema fast - ema slow
osma: macd - signal ma (difference between macd and sig.ma)

sometimes osma might be called macd histo where macd line, signal line and osma histo presented in one indicator

mt4 macd signal line is sma instead of common (and original Gerald Appel's) ema; reason: 1) sma snoozing...
Thanks for clearing everything up friend.
Happy new year!

Trader KGB Dec 29, 2008 3:48am | Post# 29

Why are we digging up a thread from 11 months ago? Hasn't this topic already been beaten to death at this point? WHO CARES, just use whatever you prefer!

mt4 macd signal line is sma instead of common (and original Gerald Appel's) ema
Which is all I was trying to say (in a roundabout way), thank you for proving my point yet again.

nandradev Aug 11, 2009 9:21pm | Post# 30

Here you go. It's not just the looks, the MT4 default MACD indicator actually calculates it differently/incorrectly.
Thank you very, very much

fxxx Aug 12, 2009 3:09am | Post# 31

1 Attachment(s)
...
macd: ema fast - ema slow
osma: macd - signal ma (difference between macd and sig.ma)

sometimes osma might be called macd histo where macd line, signal line and osma histo presented in one indicator

mt4 macd signal line is SMA;
common (and original Gerald Appel's)- EMA; ... thats all

here's macd with variable settings - you can choose watewer ma mode, price lines, or histo you like
if everyting clear with macd... : )))))
macd var., later version
MACD_OsMA_4ColorH_2LVar1_mtf.mq4

hanover Aug 12, 2009 8:01am | Post# 32

The correct MACD indicator is attached to post #2
 
The 'MACD True' indicator attached to TraderKGB's post #2 correctly follows Gerald Appel's original formula (see here, for example).

The calculation in MT4's factory-supplied MACD is different, for the reasons outlined in post #23.

For more info on MACD, see here.

fxxx Aug 12, 2009 7:58pm | Post# 33

The point is- incorrectness of using such terms itself –calling mt4 macd True or Untrue (false) correct or incorrect.

If we talking about macd in general - Appel's formula (ema-ema-ema) –only "The most popular formula for the "standard" MACD" (see here, for example) /post32.
If MT stated – they using org. Appel’s f-la – then it will be untrue or incorrect.

Otherwise – such faulty logic leads to calling settings - untrue or histo/lines drawstyles – false, and ends up with nonsense: who uses macd 5,34,5 – uses incorrect (untrue) macd…- absurd.

markus40 May 12, 2014 2:34pm | Post# 34

Can someone explain to me how to download and execute these indicators on a Mac iOS system. Everytime I download the indicator it saves as .txt.


Help would really be appreciated.

Markus


© Forex Factory