Formula for MACD and CCI

Discussion in 'Trading Software' started by croupier, Jan 4, 2010.

  1. croupier



    I am searching for a step by step formula for the MACD and if possible the CCI.

    There are diffrent formulas in the net and I dont know wich one is the correct.

    I use MetaTrader at the moment, the standard MACD from there would be more than enough. When I open the indicator file, there is no formula to copy.
    We are coding a JAVA system and need these two as input. First I thought this is the smallest problem with the indicators, now it has become the big one. :)

    Maybe someone can help me.

    Best regards


    AND: Yes, these two indicators help us to filter signals. :D
  2. Before you go code-crazy, are you sure those "indicators" work consistently well and not randomly well? :confused:
  3. croupier


    The heart of the system is price action, not indicators. The indicators are only confirmation. I have traded this system for nearly two years manual and I would say NO to your question. :D
  4. croupier


  5. Most of their formulas use close to whatever standard parameters may prevail. It is likely that your software uses the same parameters. A simple way to verify is visually observe if the one you calculate is identical-- any discrepancies will likely show up quickly.

    There is no technically 'correct' formula and parameters, only generally accepted. The correct one would be utilizing the parameters that best optimize what you are utilizing them for.

    The general equation form should not deviate, however.
  6. croupier


    Yes, this exactly the problem. The constant (.015) is not everywhere the same for the CCI for example.

    I have done it in excel now, and found the "correct" one. Correct means the constant that I have used in the past. :)

    Thank you