Moving Averages and MACD working opposite?

[newspreadbetter]

Hope this is the right forum guys, if not apologies. I'm watching the FTSE with 5 min candles and simple Moving Averages (4, 9 and 19 - Am trying out a technique I've read) and std MACD and histogram settings of 26, 12 and 9.

With it, every time the SP rises, the MACD crosses down below the signal line (when I expect it to cross up over it, not everytime i know, but the majority), it just seems to go the complete opposite direction. Am I doing something wrong please?

I've done 2 x screenshots and saved to a word doc, hopefully its uploaded

Dont all shoot me down, I'm still fairly new to this 🙂

 

[dbphoenix]

If you're going to use the MACD, familiarize yourself with Gerald Appel's books as he created the MACD in the first place (start with Winning Market Systems: 83 Ways to Beat the Market). Otherwise you could be futzing with this for years. As many do.

Db

 

[timsk]

Hi Newspreadbetter,
I've had a quick look at your Word doc. and it doesn't look right to me at all. Unfortunately, I'm unable to say what's wrong with it though - but my guess is that you're settings aren't right. If you have an account manager with Cap' Spreads - email them and ask them. In fact, even if you don't have an account - and you're just using their demo account - do it anyway. It's a good test of their customer service - as they ought to jump through hoops to please a prospective customer!

Attached below is a M5 chart of the FTSE (no M10 option it appears with this free provider). Even so, you can see it looks rather different to your chart.
Tim.

 

[newspreadbetter]

If you're going to use the MACD, familiarize yourself with Gerald Appel's books as he created the MACD in the first place (start with Winning Market Systems: 83 Ways to Beat the Market). Otherwise you could be futzing with this for years. As many do.

Db

Thanks Db, managed to find a copy of it online for next to nothing, Amazon was showing prices of £75 I think?? Anyway, have ordered a copy to read through, thanks for the recommendation

 

[newspreadbetter]

Hi Newspreadbetter,
I've had a quick look at your Word doc. and it doesn't look right to me at all. Unfortunately, I'm unable to say what's wrong with it though - but my guess is that you're settings aren't right. If you have an account manager with Cap' Spreads - email them and ask them. In fact, even if you don't have an account - and you're just using their demo account - do it anyway. It's a good test of their customer service - as they ought to jump through hoops to please a prospective customer!

Attached below is a M5 chart of the FTSE (no M10 option it appears with this free provider). Even so, you can see it looks rather different to your chart.
Tim.

View attachment 220544

Thanks Timsk, I'll drop them an email, I dont think I have an account manager (that I know by name) but it is a live account, not a demo one. I keep loking back at it and its almost as if the MACD is a mirrored version of whats happening, SP rise and it crosses under the signal line at exactly the same time. Confusing... Will report back any reply I get!

Thanks again guys

 

[newspreadbetter]

Must of been a glitch guys, removed MACD from my screen, logged out of my account, logged back in and now MACD appears to be following the SP as it should (or at least, how I imagine it should)

Still looking forward to the book coming, and spending a few evenings buried in it

Thanks again guys

 

[HolyGrail]

The problem would have been caused by the MACD settings. You advised you used the standard "26, 12 and 9" settings.

The actual standard settings are "12, 26, 9" - hence what you have had is the transpose of the standard MACD as the order of the two EMA setting determine the positivity or negativity of the difference between the EMAs.

 

[timsk]

The problem would have been caused by the MACD settings. You advised you used the standard "26, 12 and 9" settings.

The actual standard settings are "12, 26, 9" - hence what you have had is the transpose of the standard MACD as the order of the two EMA setting determine the positivity or negativity of the difference between the EMAs.

👍
Great observation HolyGrail - and spot on with your assessment. I feel a chump for not having spotted it myself!
Tim.

 

[newspreadbetter]

Sorry guys, and good spot HolyGrial.

Timsk dont worry about feeling like a chump, I do most days... its natural

Thanks again