MACD 1Min and 3Min

[bandit]

Hello

I want to compare the MACD from the 1 min chart with the MACD of the 3 min chart
I am having difficulties figuring this out.

I cannot compare the MACD[0] with MACD[3} because they are not the same computations

Can you give me some code to show me how to set up multiple time frames for the MACD

Thanks in advance

[NinjaTrader_JC]

Hello bandit,

Yes, there are a couple sample codes that you may view that will demonstrate how you may accomplish this. The first one that you may view is in our Help Guide at the link below, this goes over the how the multi-time frame script is going to be processed.

http://www.ninjatrader.com/support/helpGuides/nt7/multi_time_frame__instruments.htm

NinjaTrader also comes preloaded with a sample strategy that you may view by going to Tools -> Edit NinjaScript -> Strategies -> SampleMultiTimeFrame. You may open the source code and run the Strategy to see how it is going to look in a live environment.

Let us know if we can be of further assistance.

[Harry]

Hello

I want to compare the MACD from the 1 min chart with the MACD of the 3 min chart
I am having difficulties figuring this out.

I cannot compare the MACD[0] with MACD[3} because they are not the same computations

Can you give me some code to show me how to set up multiple time frames for the MACD

Thanks in advance

There are three options:

(1) loading secondary bar series and calculating indicator values from secondary bars
(2) calculating composite bars from primary bars and calculating indicator values from composite bars
(3) tweaking the indicator

For your problem, it is easiest to tweak the MACD. The MACD uses three exponential moving averages. For the exponential moving average, Wilder Welles originally used a smoothing constant of 1/N, where N is the indicator period. Jack Hutson then suggested a smoothing constant of 2/(N+1), which is the prevailing method used for an EMA today. This enhanced definition allows you to approximate an EMA from a 3 minute bar series on a 1 minute chart.

EMA (14) from 3 minute bars (approx.) = EMA(3*14) from 1 minute bars
SMA( 14) from 3 minute bars (approx.) = SMA(3*14) from 1 minute bars

Therefore you are allowed to to calculate your MACD(12,26,10) from 3-minute bars by setting up a MACD(36, 78, 30) on a 1-minute chart.

But attention, with most indicators this does NOT work, SMA and EMA are an exception.

The chart below shows a multiple MACD (timeframes 1, 3, 5, 10 minutes) overlaid on the price chart.

1-minute MACD -> cornflower blue
3-minute MACD -> white
5-minute MACD -> dark orange
10-minute MACD -> medium violet red