Building MACD-Style Signals from Two HalfTrend Indicators

Summary

This indicator combines two HalfTrend series with different amplitudes. Their difference forms a histogram, and a six-period average of that difference serves as a signal line. The post describes MACD-style interpretations: a histogram crossing the zero line can signal a long or short position, while crosses between the histogram and signal line can also generate orders when they occur on specified sides of zero.

The accompanying implementation calculates HalfTrend values from rolling highs, lows, and averages, then returns the difference between the shorter and longer series alongside its average. The author presents the tool as an adaptation of existing HalfTrend work, but supplies no backtest, market examples, or performance results. Signal direction is described in prose, without a full position-management or exit plan. Traders would need to verify how the indicator behaves on their data and platform, particularly around reversals and repeated crosses.

Key ideas

• The histogram is the difference between two HalfTrend indicators with different lookback amplitudes.
• A six-period average of the histogram is used as the signal line.
• Zero-line histogram crossings are presented as MACD-style directional signals.
• Histogram and signal-line crosses may provide additional signals depending on their location relative to zero.
• The post gives no performance testing or complete rules for managing positions.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.