Metastock Exploration Formula |
MACD Histogram Divergence |
This explorer looks for stocks exhibiting extreme divergence from the MACD Histogram. In his book "Trading for a Living", Alexander Elder argues that divergence from the MACD Histogram gives the strongest signals in the whole of technical analysis.
The formula can also be combined with a volatility buy signal and a volume signal. The following addition is then made.
ColB: The volatility buy signal
H > Ref(C,-1) + 1.8 * Ref( ATR(10),-1)
ColC: Volume 10% above the average of the previous 10 days
V > 1.1 * Ref( Mov(V,10,E),-1)
Filter Column:
colA AND colB AND colC AND colA <-0.80
Initial tests with this system have been encouraging. |
| Col A: |
md := MACD();
mdhist := md - Mov(md,9,E);
Correl(((Sum(Cum(1)*( mdhist ),100))-(Sum(Cum(1),100)*
Sum(( mdhist ),100)/ |
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| Filter: |
colA and colA <-0.8 |
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Did you know ...
How can I use the sector analysis feature in MetaStock?
MetaStock provides a sector analysis feature that allows you to compare the performance of different sectors. To access it, go to the "The Explorer" or "System Tester" menu, select sectors, and define the analysis criteria.
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