Three Macd Indicator Method

karthikmarar

Well-Known Member
#21
Sonu

Are you talking about the Historical Volatility ratio?

If so, here is the formula for the same..

Std(Log(C/Ref(C,-1)),5)/Std(Log(C/Ref(C,-1)),99)

regards

karthik
 

kenneth

Well-Known Member
#22
Hi ken,

Thanks . I was waiting for a reply like urs. Thanks for ur encouragement. I will definetly test ur method, but I will update in a new thread. I have developed some methods of "POSITION MANAGEMENT",
using ATR, I will post along with it.

There is an indicator called "HV RATIO" that is best for swing trading. Unfortunately, I am not getting it from any site or software. Hence I am using MACD to test it.

Thanks once again.

Regards,

Sonu M.:)
Hi Sonu,

Probably you are looking for these two Indicators
// 50 Day Historical Volatility
FiftyDayHVFilter = round(StDev(log(C/Ref(C,-1)),50)*100*sqrt(256));

// How far the stock has moved in the past month (preferable at least 10 pts in the past 20 days)
TenTwentyFilter = HHV(H,20)-LLV(L,20);

Ken
 
#23
Sonu

Are you talking about the Historical Volatility ratio?

If so, here is the formula for the same..

Std(Log(C/Ref(C,-1)),5)/Std(Log(C/Ref(C,-1)),99)

regards

karthik



Hi Sonu,

Probably you are looking for these two Indicators
// 50 Day Historical Volatility
FiftyDayHVFilter = round(StDev(log(C/Ref(C,-1)),50)*100*sqrt(256));

// How far the stock has moved in the past month (preferable at least 10 pts in the past 20 days)
TenTwentyFilter = HHV(H,20)-LLV(L,20);

Ken

Hi Karthik and Kenneth,

Thanks for ur support. Yes, this is what I was talking about.
When we divide HV of 6 by HV of 100, we get a ratio
called HV RATIO. Whenever the HV RATIO is below 50% of its value,
there is high probablity that it will jump back to its mean,
and so we can expect a big upmove.
This was first suggested by CONNORS in the book " STREET SMARTS" and also by DAVE LANDRY on SWING TRADING.
Try this method and test it on ur individual traing system.
It might be beneficial.

I have mailed it to the administrator of "icharts.in" and they have assured that it will soon be updated in future . So keep logging to icharts.in

Once again thanks guys for ur reply.
By the way, I have the softcopy of the book "ENCYCLOPEDIA OF CHART PATTERNS" by THOMAS BULKOWSKI. It is the first edition and divided into six parts. I will upload it soon in TOOLS and RESOURCES section.

Regards,

Sonu M.:)
 

sudoku1

Well-Known Member
#24
HI all,

I have developed this system by using 3 MACD indicators for swing trading.

"Three different MACD indicators"

1st. indicator - MACD (8,50,1)
2nd. indicator - MACD (50,200,1)
3rd. indicator - MACD (3,10,1)

If 1st. indicator is below "0" value, that means 8 day ema below 50 day ema,
bearish for intermediate term.

If 2nd. indicator is below "0" value, alongwith the 1st. indicator, bearish for long term.

Now, as 1st. indicator is rising above "0" value, but 2nd. indicator is below "0"
value, we must be cautious before entering the market. If both are rising above "0" values, we can go long.

Also, if both the indicators are above the "0" value for a long time, and the
2nd. indicator is trending more than the 1st. indicator (we can do this by visual inspection), then we can expect correction any time. Therefore,
be cautious in such scenario before going long.


If 3rd. indicator is below "0" value, that means the stock is oversold and when it crosses just above "0" value, we can go long.

But i advise to use 3rd. indicator alongwith other "oscillators" like RSI,
SLOW STOCH or WILL'SR%. This will give a better idea.
If it is used alongwith, say, SLOW STOCH, and if both confirm "oversold" level, then we are sure about our method.


I have attached three charts below. I am still finetuning it. Suggestions will
be appreciated. Credit also goes to VVONTERU for guiding me in this.


Regards,

Sonu M. :)
:clapping:
 

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