Re: MACD derivative

["Lionel and Gail Issen" <lissen@xxxxxxxxxxxxxxxx>]

Michael:

Thanks for this idea.

when I tried to put this into an indicator, the formula checker kept asking
for a bracket after the function name, like stdev(function, periods).This
of course resulted in an odd number of left and right brackets.  I finally
settled for the term "indicator".   Now my formula reads function( )/
stdev(indicator,periods).   I'll have to check and see if it is giving
valid answers.

Do you have any suggestions on the number of periods to use?

Lionel
-----Original Message-----
From: Samerski, Michael (Australia) <msamerski@xxxxxxxxxxxxxxxxxx>
To: 'metastock@xxxxxxxxxxxxx' <metastock@xxxxxxxxxxxxx>
Date: Tuesday, March 23, 1999 4:16 PM
Subject: RE: MACD derivative


>Here's a trick that I like.
>
>I find that the optimum trigger levels for most indicators are not really
>constant over time so I "normalise" the indicator before determining the
>trigger levels.
>I simply divide by the standard deviation.
>
>i.e. to normalise MACD
>
>NormMACD = MACD / SD(MACD)
>
>Try this on your favourite indicator e.g.
>
>NormRSI = RSI / SD(RSI)
>
>Michael Samerski.