The Stochastic MACD Oscillator by Vitali Apirine
The moving average convergence/divergence (MACD) is a well-known oscillator used to signal trend changes and indicate trend direction. Combining the stochastic oscillator and MACD allows you to define overbought/oversold MACD levels. Here’s how to do it.
The stochastic moving average convergence/divergence oscillator (STMACD) is a momentum oscillator that measures the difference between two moving averages relative to the high–low range over a set number of periods. STMACD is shown with a signal line, a centerline, and overbought/oversold levels. In this article, I will focus on differences between the MACD and STMACD ...