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> Have you attempted to create a better MACD
> with your great filters? From what I've tried and
> seen, it seems that these very fast filters are not
> suitable for MACDs. The result is extremely noisy.
The result is only noisy if you use an underdamped filter, or a filter
that has poor noise rejection. Most higher performance filters like T3,
Butterworth, Elliptical, Kalman, etc. are underdamped in that they
overshoot the data.
The critically-damped Butterworth I posted isn't a "fast" filter, it's
just a lowpass filter with attractive attenuation characteristics. I
imagine that setting passes=2 or =3 would make a good filter for MACD.
Keep in mind that this isn't an adaptive filter like JMA, it has lag like
any other. Less lag than xaverage, but more than JMA.
> Jurike's MA seems to be the only exception where I've
> seen folks create a better MACD than the original
> which uses EMAs.
The _SMA3 filter I posted a few weeks ago should also work pretty well for
MACD. It doesn't overshoot, it's smooth and well behaved. Its only flaw
is that one has to give it integer length parameters.
-Alex
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