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How do I scan for a MACD signal line cross ?

Sierragrande
Sierragrande ✭
in Scanning
What is the scan code to scan for a simple MACD signal cross? (12,26,9)

Answers

  • gord
    gord admin
    I recommend you start with the predefined scans drop down menu, just select a bullish or bearish crossover. You could then modify the parameters to suit your needs.


  • Sierragrande
    Sierragrande ✭
    THC recently had a MACD signal line cross (12,26,9) on 11/21or24 that was not picked up by the predefined scan. I'm not exactly sure why. Could you please help me with scan code that would have picked it up ? Thanks
  • ekwong
    ekwong ✭


    Change the last line of the scan as circled. You will be much happier camper.
  • gord
    gord admin
    Sierragrande, I think this one requires just a little more explanation which should help yourself and other users in the future who might read this thread.

    Note the predefined Bullish MACD crossover looks for significant events, which is why it contains a few extra criteria.

    For starters the simplest MACD crossover would be the following and it would have picked up THC Tenet Health Care. However it would also pick up any crossovers in commodities, mutual funds and indexes.

    [macd line(12,26,9) X macd signal(12,26,9)]

    So here is the predefined scan which I have added comment lines to explain each section.

    // limit output to just stocks
    [type is stock]
    // minimum volume
    and [sma(20,volume) > 40000]
    // crossover happens below the 0 line
    and [today's macd line(12,26,9) < 0]
    // MACD line today is "equal to or above" MACD signal line today
    and [macd line(12,26,9) >= macd signal(12,26,9)]
    // 1 day ago MACD line is below MACD signal 1 day ago
    and [yesterday's macd line(12,26,9) < yesterday's macd signal(12,26,9)]
    // 2 days ago MACD line is below MACD signal 2 days ago
    and [2 days ago macd line(12,26,9) < 2 days ago macd signal(12,26,9)]
    // 3 days ago MACD line is below MACD signal 3 days ago
    and [3 days ago macd line(12,26,9) < 3 days ago macd signal(12,26,9)]
    // 3 days ago MACD Hist is below MACD signal * 0.25 3 days ago
    and [3 days ago macd hist(12,26,9) < 3 days ago macd signal(12,26,9) * 0.25]

    Your stock in question THC met all the requirements except for the last one. This last criteria requires that there be some separation between the MACD line and signal 3 days ago, this ensures the crossover is more significant and not just a period where the line and signal are bouncing around very close to each other.

    If you change the last line from < to >, you are now requiring the line and signal to be close together and you will pick up only those types of stocks. All others with more separation would be eliminated. It would be better to not use the last line and just review the charts of all crossovers to visually find what interests you.

    Note this last line has confused many people in the past, it all depends on how your mind thinks. The last line could also have been written as follows, which might make more sense to some people.

    and [3 days ago macd line(12,26,9) < 3 days ago macd signal(12,26,9) * 1.25]

    Here's an article which goes thru the details of a bearish MACD crossover in much more detail, its the same as the bullish one just reversed.

    http://stockcharts.com/articles/scanning/2014/01/whats-wrong-with-this-scan-bearish-macd-crossover.html

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