{"product_id":"stcov313rema","title":"Stocks \u0026 Commodities V. 31:11 (34–39): Reversing MACD: The Sequel by Johnny Dough","description":"Reversing MACD: The Sequel by Johnny Dough\u003cbr\u003e\u003cbr\u003eIndicator Crossing Ahead!\u003cbr\u003e\u003cbr\u003eHeres a look at a function that calculates what the price of\nthe next bar would need to be for the MACD line and signal\nline to cross.\u003cbr\u003e\u003cbr\u003eIt's not uncommon to stare at an indicator on a chart and\nwonder what it will take for a price signal to be generated\nby that indicator. In my January 2012 Stocks \u0026amp; Commodities\narticle Reversing MACD, I discussed a couple of\nfunctions that were based on the relationship of the moving\naverage convergence\/divergence (MACD) line. You could\nplot those functions on a price chart with price projection\none bar ahead. One function showed the price required for\na change in the direction of MACD. The other showed the\nprice required for the MACD line to cross a certain value\nlevel. Specifically, when you are looking at MACD crossing\nthe zero level, you can anticipate the price required for the\ncrossing of the two exponential moving averages used to compute the MACD line.\u003cbr\u003e\u003cbr\u003eIn this article, I will look at one relationship based on the\nMACD line and its signal line to price. I will also show three\nsimilar price functions for the MACD formula using simple\nmoving averages.\u003cbr\u003e\u003cbr\u003eMacd and signal\u003cbr\u003e\u003cbr\u003eThe MACD was created by Gerald Appel. Its calculated using\ntwo exponential moving averages (EMAs) of different lengths\nand is the value of the shorter (fast)period EMA less than\nthe value of the longer (slow)period EMA.\u003cbr\u003e\u003cbr\u003eIn the fall of 1986, Thomas Aspray developed an indicator\nhe called the MACD-histogram (MACD-His). Its based on\nthe spread of the MACD and signal lines and is commonly\nseen plotted as a histogram with the MACD or as an indicator\nby itself. It is also known as MACDH. Visually, it shows\nclearly the size of the spread and the crossing of the MACD\nand signal lines. Aspray used divergences to produce reliable\nsignals before those of the MACD.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52134180946289,"sku":"V31C11_650DOUG","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_10f70180-7b16-4ad6-82dc-f56a47b9407f.jpg?v=1739670589","url":"https:\/\/shop.traders.com\/products\/stcov313rema","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}