Description
The MACDWithPrices study is a regular MACD(Moving Average Convergence/Divergence) oscillator which also displays labels with Reverse Engineering MACD values.
PMACDeq label displays expected price of the upcoming bar at which its MACD value is equal to the current one. PMACDlevel label displays expected price of the upcoming bar at which its MACD value is equal to the specified one. PMACDsignal label displays expected price of the upcoming bar at which its MACD value will be equal to its average.
Input Parameters
| Parameter | Description |
|---|---|
price
|
The price for which MACD is calculated. |
fast length
|
The number of bars used to calculate the fast moving average. |
slow length
|
The number of bars used to calculate the slow moving average. |
macd length
|
The number of bars used to calculate the moving average of MACD. |
average type
|
The type of moving average to be used in calculations. |
macd level
|
MACD value used in PMACDlevel calculation. |
Plots
| Plot | Description |
|---|---|
Value
|
The MACD plot. |
Avg
|
The moving average of MACD. |
Diff
|
The difference between MACD and its moving average (MACD Histogram). |
Level
|
MACD level specified with the input parameter. |
Further Reading
1. "Reversing MACD" by Johnny Dough. Technical Analysis of Stocks & Commodities, January 2012.
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.