Customizing MACD with Alternative Moving Averages and Price Inputs

Summary

The document describes a MACD indicator variant that lets users choose the moving average methods and applied price used in its calculation. Instead of relying only on exponential averages of closing prices and a simple signal average, users can select simple, exponential, smoothed, or linear weighted averages. The price input can be close, open, high, low, median, typical, or weighted close.

A second variant allows separate moving average selections for the MACD calculation and signal line. The stated periods remain 12 and 26 for the main line and 9 for the signal line. These options change how the indicator responds to prices and smoothing, but the document provides no comparative tests, trading rules, or performance evidence. It presents an indicator configuration, not evidence that any particular combination improves signals.

Key ideas

• The variant calculates MACD from configurable moving averages applied to a selectable price series.
• Users can choose among four moving average methods for the MACD and signal calculations.
• The applied price can be selected from seven standard price definitions.
• A second variant permits separate moving average choices for the MACD components and signal line.
• The document gives no backtest or evidence comparing the available configurations.

Tags

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