MACD
Current parameter: MACD(12,26,9)
Indicator Features
•Trend indicators, whose main feature is robustness
•Good forward-looking, most of the indicators are synchronized with the stock price or index, and some even lag behind the operation of the stock price, and MACD is a forward-looking and predictive indicator among various technical indicators One of the best indicators of sex
•High accuracy rate: the indicator design is relatively delicate, the calculation is relatively complicated, and the main force is relatively difficult to manipulate and cheat, so the accuracy rate is relatively high
What is MACD
MACD (English: Moving Average Convergence / Divergence, abbreviation: MACD), exponential moving average is a trend-following momentum indicator proposed by Geral Appel in 1979. MACD usually consists of three components. MACD line is fast The exponential moving average (generally 12 days) minus the slow exponential moving average (generally 26 days), generally called the difference value (DIF). The second line is the signal line, which is the exponential moving average of DIF (Generally take 9 days), generally called DEA. The last component is the MACD histogram, and its value is the difference between DIF and DEA. However, the time value of the MACD indicator can also be selected according to the trader's preference and trade categories to adjust.
Algorithm
EMA(n)=(previous day's EMA(n) Ă— (n-1)+today's closing price Ă— 2) Ă· (n+1)
EMA(m)=(previous day's EMA(m) Ă— (m-1)+ today's closing price Ă— 2) Ă· (m+1)
DIF=EMA(n)－EMA(m)
MACD(x)=(xMACD of the previous day Ă— (x-1)+DIF Ă— 2) Ă· (x+1)
The formula of MACD is to first calculate the fast line (n-day EMA) and the slow line (m-day EMA), and subtract the two values ​​obtained, and calculate the difference (DIF) between the two, and then Calculate the EMA of DIF for n days.
※Short-term EMA often uses 12 days, long-term EMA often uses 26 days, and DIF often uses 9 days for comparison.
• EMA (exponential moving average): When calculating MACD, the long-term and short-term exponential moving average (EMA) will be calculated first. Generally speaking, 12 days (n=12) are often used in the short term and 26 days in the long term (m= 26)
Usage of MACD
Aolden fork
In MACD analysis, when the DIF line crosses from below to above the DEA line, it is called a golden cross, which may be a bullish signal.
Dead fork
In MACD analysis, when the DIF line crosses from above to below the DEA line, it can be a bearish signal.
MACD trading opportunity
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