STMACD

Modified on 2019/09/28 06:00 by Eugene — Categorized as: TASCIndicators

Syntax

public STMACD(Bars bars, int period, int emaPeriod1, int emaPeriod2, string description) public static STMACD Series(Bars bars, int period, int emaPeriod1, int emaPeriod2)

Parameter Description

BarsThe symbol's Bars object
periodLookback period
emaPeriod1The short EMA period (should be less than the emaPeriod2)
emaPeriod2The long EMA period (should be greater than the emaPeriod1)

Description

The STMACD indicator is from the November 2019 issue of Stocks & Commodities magazine. The author, Vitali Apirine, presents a way to combine the stochastic oscillator and MACD. This allows you to define oversold/overbought MACD levels. The STMACD reflects the convergence and divergence of two moving averages relative to the high-low range over a set number of periods.

Interpretation

STMACD is a momentum oscillator that identifies overbought/oversold levels. STMACD is positive when the shorter moving average is above the longer moving average. The greater the indicator's value the stronger is the upside momentum and vice versa. Typically, settings use 10 as the overbought threshold and -10 as the oversold threshold.

Example

Please refer to TASC Traders' Tip from November 2019