MACD and W% indicator

[michael9]

Hi, I'm working on creating an indicator that looks for a crossover of W% from below to above -80 as well as an increasing value of MACD, within a preset # of bars of one another. I have the code below pretty close to working, but I notice some errors in the indicator and I can't figure out what is going wrong with the logic. For example, if I look at AAPL, the indicator seems to be working correctly on the WEEK chart, but not on the DAY chart. It has triggered on the DAY despite a steadily decreasing MACD value around the same time as the W% crossover occurs. What am I missing? Thanks in advance!

declare lower;

input LookBack = 7;

input fastLength = 12;
input slowLength = 26;
input MACDLength = 9;
input averageTypeMACD = AverageType.EXPONENTIAL;
input showBreakoutSignals = no;

def Diff = MACD(fastLength, slowLength, MACDLength, averageTypeMACD).Diff;

def Value = MovingAverage(averageTypeMACD, close, fastLength) - MovingAverage(averageTypeMACD, close, slowLength);

input length = 10;
input overBought = -20;
input overSold = -80;

def hh = Highest(high, length);
def ll = Lowest(low, length);
def result = if hh == ll then -100 else (hh - close) / (hh - ll) * (-100);

def WR = if result > 0 then 0 else result;

def WRcheck = fold n = 0 to LookBack
with p = 0
do p + ((GetValue(WR, n) > -80) and (GetValue(WR, n + 1) < -80));

def MACDCheck = fold i = 0 to LookBack
with q = 0
do q + (GetValue(Value, i + 1) < GetValue(Value, i));

plot Data = (WRcheck >= 1 and MACDCheck >= 1);

 

[michael9]

Here is a perfect example. This is current AAPL chart. At #1 the indicator appears to have fired correctly. But at #2 it has fired, but the MACD is decreasing not increasing so it should not have.

 

[michael9]

I think I figured out the answer to my question. For some reason the "Value" of the MACD M line was not working consistently. I had assumed that if the slope was increasing, that Value[0] would be greater than Value[1] but that did not seem to be the case. I played with using ATan function, but that also gave inconsisent results. The best calculation I found was to use (Value[0]-Value[1])/2 and this worked the way I would expect. Revised code below:

declare lower;
declare once_per_bar;

input LookBack = 7;

input fastLength = 12;
input slowLength = 26;
input MACDLength = 9;
input averageTypeMACD = AverageType.EXPONENTIAL;

def Diff = MACD(fastLength, slowLength, MACDLength, averageTypeMACD).Diff;

def Value = MovingAverage(averageTypeMACD, close, fastLength) - MovingAverage(averageTypeMACD, close, slowLength);
def Avg = MovingAverage(averageTypeMACD, Value, MACDLength);
def height = avg - avg[1];

#old angle calculation, not reliable for my purposes:
#def "Angle, deg" = ATan(height/1) * 180 / Double.Pi;

def "Angle, deg" = (Value[0]-Value[1])/2;

input length = 14;
input overBought = -20;
input overSold = -80;

def hh = Highest(high, length);
def ll = Lowest(low, length);
def result = if hh == ll then -100 else (hh - close) / (hh - ll) * (-100);

def WR = if result > 0 then 0 else result;

def WRcheck = fold n = 0 to LookBack with p = 0 do p + ((GetValue(WR, n) > -80) and (GetValue(WR, n + 1) < -80));

def MACDCheck = "Angle, deg" > 0;

plot Data = (WRcheck >= 1 and MACDCheck >= 1);
Data.SetDefaultColor(Color.GREEN);