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The real macd.. not MT4's

  • #1
  • First Post: Feb 9, 2008 1:23pm Feb 9, 2008 1:23pm
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.
  • #2
  • Feb 9, 2008 2:06pm Feb 9, 2008 2:06pm
Here you go. It's not just the looks, the MT4 default MACD indicator actually calculates it differently/incorrectly.
Attached File(s)
File Type: mq4 MACD True.mq4   3 KB | 51,502 downloads
  • #3
  • Feb 9, 2008 4:10pm Feb 9, 2008 4:10pm
Quoting Trader KGB
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!
  • #4
  • Feb 9, 2008 5:18pm Feb 9, 2008 5:18pm
Quoting CounterTrend
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.
Attached Image (click to enlarge)
Click to Enlarge Name: Macd compare.JPG Size: 90 KB
Our IMAGINATION is the true holy grail!
  • #5
  • Feb 9, 2008 6:01pm Feb 9, 2008 6:01pm
Quoting Leigh
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
  • #6
  • Feb 9, 2008 6:10pm Feb 9, 2008 6:10pm
Quoting Trader KGB
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.
  • #7
  • Feb 9, 2008 11:43pm Feb 9, 2008 11:43pm
Quoting Trader KGB
Looks good, post it up
Here you go.
Attached File(s)
File Type: mq4 MACD_ColorHist_Alert 12 26 9 LA .mq4   5 KB | 23,266 downloads
Our IMAGINATION is the true holy grail!
  • #8
  • Feb 10, 2008 4:00am Feb 10, 2008 4:00am
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!
  • #9
  • Feb 10, 2008 4:38am Feb 10, 2008 4:38am
  •  007
  • | Joined Jun 2007 | Status: "Undisciplined Trader" | 49 Posts
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).
  • #10
  • Feb 10, 2008 6:09am Feb 10, 2008 6:09am
Quoting Leigh
Here you go.
Thanks much!
  • #11
  • Feb 10, 2008 8:22am Feb 10, 2008 8:22am
Quoting BurgerKing
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!
  • #12
  • Feb 10, 2008 8:52am Feb 10, 2008 8:52am
Quoting 007
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).
Attached Image (click to enlarge)
Click to Enlarge Name: gj.gif Size: 7 KB
  • #13
  • Feb 10, 2008 1:59pm Feb 10, 2008 1:59pm
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
  • #14
  • Feb 10, 2008 2:40pm Feb 10, 2008 2:40pm
Quoting achandrasekaran99
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.
  • #15
  • Feb 10, 2008 3:30pm Feb 10, 2008 3:30pm
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.
Attached Image (click to enlarge)
Click to Enlarge Name: macd.gif Size: 63 KB
  • #16
  • Edited 6:04pm Feb 10, 2008 5:53pm | Edited 6:04pm
Quoting CounterTrend
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).
  • #17
  • Feb 10, 2008 6:29pm Feb 10, 2008 6:29pm
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?
  • #18
  • Feb 10, 2008 6:53pm Feb 10, 2008 6:53pm
Quoting CounterTrend
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!
  • #19
  • Feb 10, 2008 9:17pm Feb 10, 2008 9:17pm
Thanks, I needed that MACD_True...

Phil
All Assets NAS100 GLD BTC AUS JPY GBP All Time Return: 17.5%
  • #20
  • Mar 19, 2008 11:10pm Mar 19, 2008 11:10pm
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.
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