Berlin, Europe
Market Wizard
Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker: Interactive Brokers
Trading: Keyboard
Posts: 9,888 since Mar 2010
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RSI, Stochastics, TSI are normalized indicators and you can easily draw support & resistance on the indicator panel.
However, the MACD requires normalization before you can use it with support & resistance.
A simple way of normalizing indicators is obtained by calculating the z-score.
The chart below shows the z-score of a MACD with S/R lines (1st and 2nd standard deviation) added.
In this case the normalized MACD is used for detecting divergences.
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