Go over to www.freestockcharts.com and set up the price chart however you like. To get you to what you see below, I selected "View" - Show Full Screen Chart.
Then I selected (on the chart) "Settings" - "Back Color" to White
Also under "Settings" - Plot Style - Candlestick. "Color Based on" - Open vs. Close (or whatever you prefer) and both "Up Bars" and "Down Bars" selected as "Filled"
Then click "Add Indicator" and select 'MACD'.
You're then going to "Edit" from the drop-down options
Change the following:
"Plot Style" -> Histogram
Change the "Plot Color" if you would like
Select "Negative Value Color" (Optional)
Change "Short" to 3
Change "Long" to 10
For "Average Type" select "Simple"
You're left with the following:
Next Change the Slow Line. Select the drop-box next to "Exp Moving Average 9" and Edit
Change "Period" to 16
"Average Type" to Simple
Increase Line width to it's fullest
You're left with the following
This gives you the basic 3/10macd
If you would like to add a time frame three times higher (as your "traded" time frame) you would do that one first (as outlined above) and use the settings of 6, 27, 48.
Add some Moving Averages and you're left with the following chart (I used the 20- & 50-SMA, alternatively, to reflect the higher traded time frame, you could use a 60- 150-MA):
The chart above is a Daily chart. But it is actually your "trigger" chart. The longer length macd (top most indicator) reflects what the 3/10macd looks like on a time frame that is three times (3x) slower, which would be your "traded" time frame. You would then use the lower most 3/10macd as the trigger for your setups.
1 comment:
Thanks so much :o)
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