The MACD lines and histogram are essential tools for any trader using the Impulse trading system.
The Concept Behind It
- If the histogram is down (current value is less than the previous) and the specified Line input is also down, then the histogram turns red - long trades are off the table;
- If the histogram is up (current value is greater than the previous) and the line is also up, you’ll see the histogram in green - short trades are off the table;
- If the histogram is down but the line is up (or the opposite), the histogram shows grey - no restrictions apply;
Understanding Inertia
The Inertia is defined by the Line input parameter:
- 0 - MA (MAPeriod);
- 1 - MACD line;
- 2 - Signal signal line.
Additional Input Parameters
- FastMA - Period of the Fast Moving Average;
- SlowMA - Period of the Slow Moving Average;
- SignalMA - Period of the Signal Line;
- MAPeriod - Period of Moving Average if Line = 0;
- MAMethod - Averaging Method (MODE_EMA by default);
- MAAppliedPrice - Applied Price (PRICE_CLOSE by default);
- Line - as described above;
- DigitsInc - Precision format Digits + DigitsInc;
