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Author: just1trader Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2705  
Subject: Re: 13/50 vs. Lagged MACD Date: 6/25/2013 10:21 AM
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Quill,

The 'smoothness' comes from fact that a slower MAV is being used to create signals. The standard MACD uses a 9-period MAV. I slowed it down to a 20-period MAV, which does a better job of describing what's happening in the 'intermediate' trend/time-frame, as opposed to the 'short-term' or 'long-term' ones. (However, the (20,40,20) version produced useless signals when applied to weekly bars.)

What I'm thinking is that three versions need to be created to match up to the three time-frames an investor/trader could choose to work in.

Charlie
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