The Moving Average Convergence-Divergence Trading Method is a price momentum oscillator.
MACD is calculated in three steps:
1. Calculate the point spread difference between two Exponential Moving Averages of the closing price: a slower, 26-day EMA is subtracted from a faster 12-day EMA. Plot this differential oscillator, which measures price velocity.
2. Smooth this price velocity with an even faster 9-day EMA. Plot this signal line.
3. Calculate a second differential oscillator by subtracting the signal line from the price velocity. Plot this measure of price acceleration as a histogram.
Showing posts with label moving average convergence divergence. Show all posts
Showing posts with label moving average convergence divergence. Show all posts
Monday, July 11, 2011
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