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PureBytes Links
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cd,
Don't have the answer but believe I can point you in the right
direction. Look here for indicators:
http://trader.online.pl/MSZ/!-MSZ-index-en.html
Look for MACD then Normalized Indicators.
Basically, to normalize something you divide by a parameter. For
instance you could normalize a MACD to the price by dividing the MACD
by Close. You could also normalize to the highest high and lowest low
over a period of time. This was discussed in TASC recently. When you
look under the Normalized Indicators at the site I mentioned above
you will notice that they normalize to a number of different
parameters.
A word of caution here. The BigTrends explanation of the Momentum
Divergence Indicator is flawed. Their reasoning they gave was so that
you could compare prices over a wide variety of stocks...
"One of the challenges of the MACD indicator is that it plots MACD
levels relative to the stock's price. This means that all things
being equal, a higher-priced stock will have a higher MACD reading
than a lower-priced stock, even if they have the same pattern. Yet
you want to compare apples to apples, and for the exact same pattern,
you want the same reading consistently of the strength or weakness
inherent in that pattern, across all stocks."
MACD is the difference between a short moving average and a long
moving average. The difference, not the price! Even with the error
being noted there may be some benefit to normalizing a MACD. Just
make sure you know why you are normalizing.
Preston
--- In equismetastock@xxxxxxxxxxxxxxx, cd8624 <no_reply@xxxx> wrote:
> Anyone has Price Headley's Momentum Divergence Indicator in
> metastock?
>
> Here is esignal format. Don't know how to translate to metastock.
>
>
>
> ********************************************************************
> Title: MomentumDivergence Script for eSignal 7.x
> By: Chris D. Kryza (Divergence Software, Inc.)
> Email: c.kryza@xxxx
> Incept: 03/17/2003
> Version: 1.0.0
>
>
>
=====================================================================
> Fix History:
> 03/17/2003 - Initial Release
> 1.0.0
>
>
=====================================================================
> Project Description:
>
> Price Headley's Momentum Divergence Indicator. This study normalizes
> MACD and price and can help to identify periods of strong momentum.
> See
>
http://bigtrends.iqchart.com/partner/bigtrends/education/technical_div
ergance.asp
> for a more in-depth description.
>
> Recommended Period values are 15 or 40.
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