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MACD Combo

Written by Administrator Wednesday, 05 September 2007 10:00
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MACD Combo

A MACD (Moving Average Convergence Divergence) is the difference between an Oscillator and a Moving Average of that Oscillator. See Oscillator and Moving Averages for more information.

MACD’s are usually calculated using exponential Moving Averages based on the close of the bars.   





The MACD Combo indicator combines the MACD-Signal and MACD-Histogram and displays the indicators in one window.


To add a MACD Combo indicator to your chart, select the MACD-C tool from the Averages tool group, left click on the chart you wish to add the MACD-C. Market Analyst will then draw the MACD Combo using the default settings.

MACD Combo Actions and Properties



Actions

Save Settings As Default:    Once settings have been changed on a tool (colour for example), you have the ability to save these settings as the default.  This means the next time you apply the tool to a chart, the new settings will already be selected, without the need for you to adjust them manually.

Restore Default Settings:    If you have altered the default settings of a tool, and wish to change them back to the program defaults, click this action.

Add Tool to Group:    This action exists for all tools available in Market Analyst and allows you to add the selected tool to either a custom tool folder, or the tool bar (located along the top of the program window).


Properties

Oscillator, Average, Histogram Average:   Each of these properties contain the Line Style, Colour and Display Type of the respective lines. To access these properties click on the plus sign (+) to the left of the required property field:

    * Line Width - Sets the width of the line.
    * Colour - Sets the colour of the MACD Line.
    * Display Type - Sets the type of display to Line, Point or Histogram.

Visible:   This option allows you to visually turn the tool on and off the chart.

OSC MA1  
The number of bars that are averaged in the fast moving average for the base oscillator.

OSC MA2:  
The number of bars that are averaged in the slow moving average for the base oscillator.

Average:  
The number of bars that are averaged over the oscillator.

Calc Style:  
This option is used to set the type of calculation for the moving average. The calculation options are Exponential, Simple, Weighted, Smoothed, or Modified.

Calc Using:  
This option is used to determine which components of the data are used in calculating the moving average. You can choose from, Open Price, Closed Price, High Price, Low Price, HL (High + Low / 2), HLC (High + Low + Close / 3), OHLC (Open + High + Low + Close / 4), OC (Open + Close / 2).

Offset:  
Moves the MACD forward or backward in time. The offset is measured in bars so a value of 2 will push the MACD forward 2 bars and -2 will move the MACD back 2 bars.

Transparency:  
Use this field to make a tool transparent. The required level of transparency is achieved by sliding the scroll bar to the left or right.
Last modified on Monday, 20 July 2009 12:17