StockFinder’s Quirky MACD and MACD Histogram
StockFinder® may be my new favorite tool, but its not without quirks. While creating custom indicators, scans and layouts for BackTesting Report subscribers, I came across its shortcomings with the MACD. The screenshot above shows a StockFinder layout with 2 MACD of different parameter settings. The candlesticks on the price chart are color-coded green for buy signals, red for sell signals by one MACD strategy, and blue for a different MACD strategy’s sell signals.
The two main problems with StockFinder’s built-in MACDs are:
1. When you insert a MACD or MACD Histogram, they come up with simple moving averages by default instead of the standard exponential moving averages. You need to click on them and on the right of the edit menu, change from simple to exponential moving averages.
2. If you change the parameter settings, say from 12-26-9 to 19-39-9, the MACD signal line still does a 9-bar moving average of the default 12-26 MACD line. You need to delete the signal line and recreate it as a 9-bar exponential moving average of the current MACD line.
StockFinder also takes a few extra clicks to get the MACD lines and MACD Histogram in the same pane. They need to be added individually and take up too much space if left in separate panes.
StockFinder doesn’t come with Appel’s Histogram but I found it very easy to add as a custom indicator in StockFinder’s Real Code. For example see the StockFinder screenshot below, which shows Appel’s Histogram in an implementation of a MACD strategy excerpt from Gerald Appel’s Technical Analysis Power Tools for Active Investors.
In conclusion, StockFinder can do useful and powerful things but be sure to tweak the settings if you put a MACD on its charts.
May 3rd, 2009 Filed under MACD, Outside Products ReviewedTags: Appels Histogram, MACD, MACD Histogram, Stockfinder
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This is my opinion based on findings on Telechart, Stockfinder and Freestockcharts which are part of the same Worden family.
First I started using Freestockcharts and that convinced me to get stockfinder. After a while stockfinder depressed me that much. Telechart is an aged tool, I mainly use it for socializing and chatting.
Telechart : has very few indicators and not efficient for daytraders. Telechart turned me off, because I can’t create my own timeframe. The lowest time grid you can get is 1 hr. As a daytrader which is not acceptable to me. Moreover, Worden just support the telechart and stop any new developement on Telechart.
Stockfinder : I still use stockfinder for daytrading. It is very flexible and got lot of great indicators. However, stockfinder has plenty of petty bugs which really disappoint me. Sometimes I have to reboot the stockfinder to get those indicator in original form. What good to have lots of features , if they are defective. It is hard to get workaround and get good solution for that. It seems like Worden is reluctant to resolve these bugs.
Freestockcharts : I love this tool , from the very begining get go. It is an awesome creation from the Worden. It has some great and vital indicators which are not even available in stockfinder and telechart(subscription based product) and that’s why possibly I may go back to freestockcharts sooner or later. Freestockcharts has inbuilt scanner and it is web-based can be accessed anywhere in the world. With freestockchart and couple of brokerage charting software I think I can do as good as stockfinder or telechart
Thanks for your well-thought comments.