MACD Expert

Hi Guys,

I have quite a successful MACD system which I have been live testing quite successfully over the past month but I won't to go back over longer term data.

Could some one please confirm the following for me:

Calculation

MACD = Longer EMA - Shorter EMA
Signal = X EMA of MACD
Histogram = MACD - Signal

Is this correct?

If so for an EA would it be ok to have something like the following?

hist=iMACD(NULL,0,12,26,7,PRICE_CLOSE,MODE_MAIN,0)-iMACD(NULL,0,12,26,7,PRICE_CLOSE,MODE_SIGNAL,0);

would that give me the histogram value?

Thanks

I am not sure what do you mean. There may be some mistakes in terminology.

1. MACD 2 lines - 1-st line is divergence between fast and slow MA; 2-nd - line is signal line (MA on 1-st line)
2. MACD histogram (Moving Average of Oscillator, OsMA in MT terms) - histogram is divergence between 1-st and 2-nd MACD

So, if I get this correct, you basicaly need a OSMA value!???

This is a code for OSMA:

extern int fast_ema_period =12;
extern int slow_ema_period = 26;
extern int signal_period = 9;
extern int applied_price = 0;

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histogram value = iOsMA(NULL,0,fast_ema_period,slow_ema_period,signal_period,applied_price,0) ;

Regards