Jump to content

Question

Is the MACD indicator on this platform calculated using EMAs or SMAs?? I know the standard method is EMAs but I don't want to assume anything. 

More generally is there a section on the website where I can actually find the math / formulae for the indicators, ie how they are actually constructed? 

I'm tired of being given generic info about what the indicator is and then simply left to believe it will perform as I expect. Slight modifications to the construction of an indicator can have huge implications for its behaviour. I'm sure traders on here can't possibly be so naïve. . . 

Please help. 

Share this post


Link to post

5 answers to this question

Recommended Posts

  • 0
5 minutes ago, Omar_S said:

Is the MACD indicator on this platform calculated using EMAs or SMAs?? I know the standard method is EMAs but I don't want to assume anything. 

More generally is there a section on the website where I can actually find the math / formulae for the indicators, ie how they are actually constructed? 

I'm tired of being given generic info about what the indicator is and then simply left to believe it will perform as I expect. Slight modifications to the construction of an indicator can have huge implications for its behaviour. I'm sure traders on here can't possibly be so naïve. . . 

Please help. 

hi, there is no IG page with the forumla for the indicators but in my experience they are always the generic default so with MACD that would be the Fast and Slow periods being EMA while the Signal period is SMA.

  • Like 1

Share this post


Link to post
  • 0

 

thanks … actually on the settings window of the indicator it refers to fast and slow EMA periods, so I can see it's EMA now. 

I think it's unfortunate they don't publish the indicator calculations. We shouldn't have to guess. 

Share this post


Link to post
  • 0

Omar, you highlight the reason why most TA and indicators are a waste of time; they can be adapted to what you want them to be. They are a comfort blanket and justification for opening making (mainly opening) a trade. Brokers love them because they create activity. A massive industry exists in providing real (because it's all historic) data but none of them can predict the future.

  • Like 1

Share this post


Link to post
  • 0

Thanks. On the whole I agree. My point being that if I know how the indicator is calculated I can possibly use it (or a modification of it) to produce test based on statistical inference. The difference between predicting the future and having statistical inference maybe subtle but important I think. 

Regardless though, if I don't know how it's calculated it's going in the garbage. 

Share this post


Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
You are posting as a guest. If you have an account, please sign in.
Answer this question...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Member Statistics

    • Total Topics
      12,797
    • Total Posts
      65,705
    • Total Members
      86,595
    Newest Member
    Sarva
    Joined 26/10/20 16:18
  • Posts

    • This ...   to generate enough fear and despair to ensure this ... which is essentially a loss of national sovereignty and a loss of personal freedoms and liberties. In the future Google will tell you what's true or not, Zuckerberg will tell you what you're allowed to say or not, Greta will tell you what you're allowed to do or not while Gates will tell you which medical interventions and treatments will be mandatory or not.   Meanwhile back to Sweden ...   While in Wales you can look but you can't buy (this is what stupidity looks like) ...  
    • I see this quite often too.... not sure if these spikes happen in an instance ..
×
×