Quote:
Originally Posted by omelette
Has anyone actually taken the time to examine this formula?
It is adding MACD (typical value = 0.0020) to RSI (typical value 50.0) - as you can probably see, MACD influence is insignificant and can be disregard completely! If someone actually received a Masters based on this, then all I can wonder is what is the educational system coming to...
btw the 'actual' formula also includes raising the value to a power, which results in infinities everywhere, so I really think you are flogging a head horse here...
|
This indicator was not made and tested in forex market. I think it was made for platform where there is no non-integer values. For instance value of cable would be 20770. Then MACD would have been significant.
But anyway, I don't see any mathematical point of adding MACD to RSI. It is like summing absolute and relative speed. Also I don't understand why the author sums an oscillator which moves around 0 and oscillator which moves around 50, I would deduct from RSI value 50.
I think something wrong with the formula, but the idea of mathematical filter is worth researching.
Wookey