Divergence from the MACD Histogram gives the strongest signals in the whole of technical analysis. The beloe MetaStock Explorer looks for stocks exhibiting extreme divergence from the MACD Histogram.
ColA: md := MACD(); mdhist := md - Mov(md,9,E); Correl(((Sum(Cum(1)*( mdhist ),100))-(Sum(Cum(1),100)* Sum(( mdhist ),100)/100))/((Sum(Power(Cum(1),2),100))- (Power(Sum(Cum(1),100),2)/100)),((Sum(Cum(1)*C,100))-(Sum(Cum(1),100)* Sum(C,100)/100))/((Sum(Power(Cum(1),2),100))-(Power(Sum(Cum(1),100),2)/100) ),12,0)
Filter Column: colA and colA <-0.8
The above formula can also be combined with a volatility buy signal and a volume signal. The following addition is then made.
ColB: The volatility buy signal H > Ref(C,-1) + 1.8 * Ref( ATR(10),-1)
ColC: Volume 10% above the average of the previous 10 days V > 1.1 * Ref( Mov(V,10,E),-1)
Filter Column: colA AND colB AND colC AND colA <-0.80
ColA: md := MACD(); mdhist := md - Mov(md,9,E); Correl(((Sum(Cum(1)*( mdhist ),100))-(Sum(Cum(1),100)* Sum(( mdhist ),100)/100))/((Sum(Power(Cum(1),2),100))- (Power(Sum(Cum(1),100),2)/100)),((Sum(Cum(1)*C,100))-(Sum(Cum(1),100)* Sum(C,100)/100))/((Sum(Power(Cum(1),2),100))-(Power(Sum(Cum(1),100),2)/100) ),12,0)
Filter Column: colA and colA <-0.8
The above formula can also be combined with a volatility buy signal and a volume signal. The following addition is then made.
ColB: The volatility buy signal H > Ref(C,-1) + 1.8 * Ref( ATR(10),-1)
ColC: Volume 10% above the average of the previous 10 days V > 1.1 * Ref( Mov(V,10,E),-1)
Filter Column: colA AND colB AND colC AND colA <-0.80
