Indicator on indicator not working

[Harry]

A number of indicators have bugs in their code, which makes them unusable for an indicator on indicator approach. I have already made a comment on the stochastics indicator here:

http://www.ninjatrader.com/support/forum/showthread.php?t=26337&highlight=stochastics+bug

Today I have applied a default ROC on a default MACD. As you can see on the chart below, it easily exceeds a value of 40000. Can you explain this?

These are the exact chart settings: ES 06-10 30 min, lookback period 5 or 100 days, default ROC applied to default MACD.

[NinjaTrader_Ray]

Harry,

The equation for ROC is very straight forward. Are you suggesting that when you feed in the MACD default plot values into the ROC equation, that the value of 40,000 is mathematically incorrect?

[roonius]

A number of indicators have bugs in their code, which makes them unusable for an indicator on indicator approach. I have already made a comment on the stochastics indicator here:

http://www.ninjatrader.com/support/forum/showthread.php?t=26337&highlight=stochastics+bug

Today I have applied a default ROC on a default MACD. As you can see on the chart below, it easily exceeds a value of 40000. Can you explain this?

These are the exact chart settings: ES 06-10 30 min, lookback period 5 or 100 days, default ROC applied to default MACD.

It is because ROC is meant ROC for price. Rate of change is valid only for positive values.

if previous value was 0 and current value is 10, what should be rate of change? Positive infinity.

There will be another group of indicators which require more than one DataSeries to calculate indicators value. For example someone would create an indicator which would calculate (High + Open + Low)/3. the attempt to put MACD as source for this indicator will not be a good idea and it is not really a bug, it is totally expected.

I don't think it is a bug, some indicators just do not make sense to be run on other indicators.

[Harry]

Thanks for the answer. Obviously it does not make sense to apply the ROC to a MACD, so I was completely wrong here, LOL.

I saw a pattern that I had seen elsewhere, and because it was late I just posted without thinking it over. Sorry for the unnecessary post.