MACD Momentum - MetaTrader 4 Script | Forex Indicator Download - MT4/MT5 Resources

MACD momentum indicator (the red line is the histogram MACD with momentum 10, smoothed 3).

Based on what Tom Aspray was thinking, I don't know if this metric is the same as what he was considering, but it might be useful.

"In the fall of 1986, Tom Aspray completed work on a new indicator: the MACD Histogram/Momentum. The MACD, or Convergence/Divergence, is an excellent indicator, but its signals often lag when run on weekly data. Convergence/Divergence was developed by Gerald Appel, who has created many excellent technical tools.

Tom first presented his research on MACD in 1984 at the CompuTrac conference. At the time, few analysts were aware of this, let alone using it in commodity markets. Now it is a widely used technology tool.
Tom did some work optimizing the MACD by testing various input combinations for three exponential moving averages. Then, by changing the moving average variable, the results can be significantly different.

For example, the default combination of silver (12-day, 26-day and 9-period index average difference) is not always profitable, while the (10, 20, 9) combination is profitable 54% of the time, with an average profit of 67.5 points and an average loss of only 34 points.

After studying and using MACD for nearly five years, Tom believed that, in addition to optimization, a method of predicting crossovers would be a clear advantage. After researching (and testing) several alternatives, he found that by running MACD's 10-day momentum (3-day smoothed) (MACD-H) as a histogram, the results were pretty good. "

Attachment download

📎 macd_momentum.mq4 (3.92 KB)

Source: MQL5 #11511