Is it possible to combine MACD with Bollinger bands?

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Hello Pete,

Hope you are doing well. I recently started trading and stumbled upon your videos while I was searching for a way to merge MACD with Bollinger Bands on TOS. I tried to merge them in lower column (below volume) but MACD either extends way above or below Bollinger Bands. Is there a way to keep the MACD lines within Bollinger Bands? I tried to create a new study using in-built script but it didn’t work.

I have attached two images (First image is an example of how I want it to be, while the second one is how its showing up in TOS when I try to merge them together) for your reference.

I am very new to TOS and trying my best to learn. Any help would be appreciated.

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Posted by (Questions: 1, Answers: 0)
Asked on July 30, 2018 1:54 am
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Here is one way to achieve this. If you are trying to learn how to do this and want an explanation of the code then let me know and I will provide more details.

Here is the code, with screenshot showing the result:

declare lower;
#---------- MACD Inputs
input fastLength = 12;
input slowLength = 26;
input macdLength = 9;
input macdAverageType = AverageType.EXPONENTIAL;
#---------- BB Inputs
input displace = 0;
input length = 20;
input num_Dev_Dn = -2.0;
input num_Dev_up = 2.0;
input bbAverageType = AverageType.Simple;
#---------- MACD Section
def value = MovingAverage(macdAverageType, close, fastLength) - MovingAverage(macdAverageType, close, slowLength);
def avg = MovingAverage(macdAverageType, value, macdLength);
#---------- BB Section
def sDev = stdev(data = avg[-displace], length = length);
plot midLine = MovingAverage(bbAverageType, data = avg[-displace], length = length);
plot lowerBand = midLine + num_Dev_Dn * sDev;
plot upperBand = midLine + num_Dev_up * sDev;

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Answered on July 31, 2018 9:06 am
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