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The real macd.. not MT4's

  • #21
  • Mar 20, 2008 12:26am Mar 20, 2008 12:26am
Quoting Classic5000
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.
  • #22
  • Mar 21, 2008 12:36pm Mar 21, 2008 12:36pm
Quoting magnumfreak
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.
  • #23
  • Mar 21, 2008 3:36pm Mar 21, 2008 3:36pm
Quoting Trader KGB
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
  • #24
  • Mar 21, 2008 8:57pm Mar 21, 2008 8:57pm
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?
  • #25
  • Dec 22, 2008 11:26pm Dec 22, 2008 11:26pm
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.
  • #26
  • Dec 28, 2008 8:23pm Dec 28, 2008 8:23pm
Quoting Zen
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.
Request custom Expert Advisor or Indicator: dostapyuk "at" gmail . com
  • #27
  • Edited 10:49pm Dec 28, 2008 9:59pm | Edited 10:49pm
Quoting Trader KGB
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
Attached Image (click to enlarge)
Click to Enlarge Name: macd osma histo.gif Size: 20 KB
Attached File(s)
File Type: mq4 MACD_OsMA_4ColorH_2LVar_mtf.mq4   7 KB | 4,484 downloads
  • #28
  • Dec 29, 2008 2:05am Dec 29, 2008 2:05am
Quoting fxxx
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!
Request custom Expert Advisor or Indicator: dostapyuk "at" gmail . com
  • #29
  • Dec 29, 2008 2:48am Dec 29, 2008 2:48am
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!

Quoting fxxx
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.
  • #30
  • Aug 11, 2009 8:21pm Aug 11, 2009 8:21pm
Quoting Trader KGB
Here you go. It's not just the looks, the MT4 default MACD indicator actually calculates it differently/incorrectly.
Thank you very, very much
  • #31
  • Aug 12, 2009 2:09am Aug 12, 2009 2:09am
Quoting fxxx
...
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
Attached File(s)
File Type: mq4 MACD_OsMA_4ColorH_2LVar1_mtf.mq4   9 KB | 4,179 downloads
  • #32
  • Aug 12, 2009 7:01am Aug 12, 2009 7:01am
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.
  • #33
  • Aug 12, 2009 6:58pm Aug 12, 2009 6:58pm
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.
  • #34
  • May 12, 2014 1:34pm May 12, 2014 1:34pm
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
  • #35
  • Aug 10, 2015 9:52am Aug 10, 2015 9:52am
That one with the alarm is great but the alarm goes off a million times when it crosses. How do i get it to chill out a bit?
  • #36
  • Jun 6, 2016 8:20am Jun 6, 2016 8:20am
Can this be used on mulitple accounts?? downloaded and using it fine on my live account, tried the same for another mt4 account i have and wont have none of it?!?!?!?!
  • #37
  • Jun 17, 2016 4:00am Jun 17, 2016 4:00am
Quoting JustyJust
That one with the alarm is great but the alarm goes off a million times when it crosses. How do i get it to chill out a bit?
You will need to add some timed delay to the code, so close crossings will not alarm more than once.
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  • #38
  • Jun 17, 2016 4:02am Jun 17, 2016 4:02am
Quoting Engelbachc
Can this be used on mulitple accounts?? downloaded and using it fine on my live account, tried the same for another mt4 account i have and wont have none of it?!?!?!?!
There is no limitation.
If your other mt4 account is on another platform, you need to copy the indicator to its folder there too.
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  • #39
  • Jun 18, 2016 6:43am Jun 18, 2016 6:43am
Is there any possibility to use this custom indicator for mt4? i would like to use the cross of the signal and 12 ema line
  • #40
  • Jun 18, 2016 12:36pm Jun 18, 2016 12:36pm
Its is more important that the indicators in a platform are consistent. It is not that important that an indicator is 100% correctly calculated. Indicators are after all a trigger, and should not be used as the sole input to a strategy. It can sometimes be an advantage to use a modified version of an indicator not to trade when all the others trade - or even skew the time in the platform 5 seconds may give you a better fill.
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