Scribd Logo
Upload

Welcome to Scribd!

  • 72 views

    Moving Average Convergence Divergence (Macd) : Calculations

    Uploaded by

    brijendra singh
    The document discusses the Moving Average Convergence Divergence (MACD) indicator, which is a momentum indicator that shows when trading momentum changes from bullish to bearish or vice versa. It is calculated as the difference between a fast and slow exponential moving average, typically 12 and 26 days. A signal line is formed using a 9-day EMA of MACD values. Crossovers of MACD and the signal line indicate buy and sell signals.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Moving Average Convergence Divergence (Macd) : Calculations

    Uploaded by

    brijendra singh
    72 views1 page
    The document discusses the Moving Average Convergence Divergence (MACD) indicator, which is a momentum indicator that shows when trading momentum changes from bullish to bearish or vice versa. It is calculated as the difference between a fast and slow exponential moving average, typically 12 and 26 days. A signal line is formed using a 9-day EMA of MACD values. Crossovers of MACD and the signal line indicate buy and sell signals.

    Original Title

    Macd

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses the Moving Average Convergence Divergence (MACD) indicator, which is a momentum indicator that shows when trading momentum changes from bullish to bearish or vice versa. It is calculated as the difference between a fast and slow exponential moving average, typically 12 and 26 days. A signal line is formed using a 9-day EMA of MACD values. Crossovers of MACD and the signal line indicate buy and sell signals.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    72 views1 page

    Moving Average Convergence Divergence (Macd) : Calculations

    Uploaded by

    brijendra singh
    The document discusses the Moving Average Convergence Divergence (MACD) indicator, which is a momentum indicator that shows when trading momentum changes from bullish to bearish or vice versa. It is calculated as the difference between a fast and slow exponential moving average, typically 12 and 26 days. A signal line is formed using a 9-day EMA of MACD values. Crossovers of MACD and the signal line indicate buy and sell signals.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Technical Analysis MasterClass Cheat-Sheet 4

    MOVING AVERAGE CONVERGENCE DIVERGENCE (MACD)

    The moving average convergence divergence (MACD) is a trend following momentum indicator and
    it is a lagging indicator that can show you when trading momentum changes from being bullish to
    bearish and from being bearish to bullish. The MACD also tells when traders are becoming
    overextended, which usually results in a trend reversal.

    Moving Average Convergence Divergence (MACD) is the difference between a fast and a slow
    exponential moving average. Typically, 12 and 26 days EMAs are used. MACD is the difference
    between the values of these two EMAs. A signal line is formed by calculating the EMA (typically
    9day) of the MACD. The difference between MACD and the signal line is calculated and plotted as a
    histogram.

    Calculations:

    When to use…

    The most common signal is MACD crossing over the signal line. A buy signal is generated when
    MACD crosses above the signal line, whereas a sell signal is generated when it crosses down through
    the signal line. Since the histogram is the difference between the MACD and the signal line, it helps
    you identifying this crossover. Buy/Sell signals are also generated by divergences (A divergence is
    said to exist if the price and the indicator moves in opposite direction). A positive divergence arises
    when the price makes a low or moves sideways, but the MACD move in upward direction. You can
    change the settings of MACD as per the set of moving average combination that you want to use.

    Jyoti Bansal - Certified Technical Analyst ( NCFM ), Investment Advisor ( NISM ) 4

    You might also like