The Moving Average Convergence/Divergence indicator is a centered oscillator that shows the difference between two moving averages, typically 12 and 26 days.  These values, like any other parameter, can be altered to show the MACD over a different period of time.

 

The MACD system buys when the MACD goes above zero and sells when it goes below zero. So it's always in the market. Very similar in function to the Dual Moving Average System.

 

 

The MACD system uses the following parameters:

 

 

Short Moving Average Days

Number of days used to calculate the short moving average

 

Long Moving Average Days

Number of days used to calculate the long moving average

 

Average True Range Days

Number of days used to calculate the Average True Range

 

ATR Stop

ATR Stop (fraction): Fraction of the ATR used for stops

 

 

Entry Script

IF  macdIndicator > 0 AND
  instrument.position <> LONG THEN
   
  IF useATRStops THEN
      broker.EnterLongOnOpen( instrument.close - averageTrueRange * atrStop )
  ELSE
      broker.EnterLongOnOpen
  ENDIF
   
ENDIF
 
IF  macdIndicator < 0 AND
  instrument.position <> SHORT THEN
   
  IF useATRStops THEN
      broker.EnterShortOnOpen( instrument.close + averageTrueRange * atrStop )
  ELSE
      broker.EnterShortOnOpen
  ENDIF
ENDIF

 

 

Adjust Stops

' ---------------------------------------------
' Enter stop if "holdstops" is true
' ---------------------------------------------
 
IF useATRStops THEN
 
  broker.ExitAllUnitsOnStop( instrument.unitExitStop )  
ENDIF

 

---