![]() |
| Discuss MACD - Moving Average Convergence Divergence at the Technical Analysis within the Traderji.com - Discussion forum for Stocks Commodities & Forex; MACD - Moving Average Convergence Divergence The Moving Average Convergence Divergence (MACD) was invented by Gerald ... |
|
|||||||
| Register | Blogs | FAQ | Chat Room [1] | Search | Today's Posts | Mark Forums Read |
| Technical Analysis Discussion of all the principles involved in technical analysis. |
|
Welcome to the Traderji.com - Discussion forum for Stocks Commodities & Forex. You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today! If you have any problems with the registration process or your account login, please read the FAQ. |
![]() |
|
|
Thread Tools |
| Sponsored Links |
|
#1
|
|||
|
|||
|
MACD - Moving Average Convergence Divergence
The Moving Average Convergence Divergence (MACD) was invented by Gerald Appel sometime in the sixties. The MACD ("Moving Average Convergence Divergence") is a trend following momentum indicator that shows the relationship between two moving averages of prices. It is one of the simplest and most reliable indicators available. MACD uses moving averages, which are lagging indicators, to include some trend-following characteristics. These lagging indicators are turned into a momentum oscillator by subtracting the longer moving average from the shorter moving average. The resulting plot forms a line that oscillates above and below zero, without any upper or lower limits. MACD is a centered oscillator. The MACD is the difference between a 26-day and 12-day exponential moving average. mov( close, 12, E) - mov( close, 26, E) A 9-day exponential moving average, called the "signal" (or "trigger") line is the 9 day EMA of the difference between the 26 and 12 period EMA and is plotted on top of the MACD to show buy/sell opportunities. mov( (mov( close, 12, E) - mov( close, 26, E)), 9, E) There are 3 common methods to interpret the MACD: 1. Crossovers - When the MACD falls below the signal line it is a signal to sell. Vice versa when the MACD rises above the signal line. 2. Divergence - When the security diverges from the MACD it signals the end of the current trend. 3. Overbought/Oversold - When the MACD rises dramatically (shorter moving average pulling away from longer term moving average) it is a signal the security is overbought and will soon return to normal levels. |
|
#2
|
|||
|
|||
|
Dear Traderji,
Thanks a lot and letting me knowing MACD,i am really thankful to you. God Bless You. Best Wishes uncle sam |
|
#3
|
|||
|
|||
|
I use MACD 5,25,5...
Also check out these links: http://www.nqoos.com/efuturevision1.htm http://www.nqoos.com/efuturevision2.htm Cheers, -- Linuxtroll |
|
#4
|
|||
|
|||
|
I must have missed this. It is good indeed though it would have been better if overbght-oversold, divergence and crossovers had also been explained thru the MACD histogram.
I remember requesting Traderji in the stochastics post to make similar posts on RSI and ROC since they are the only two major indicators left. Thanks. |
|
#5
|
|||
|
|||
|
thanks jus learning the trade
Yogi |
|
#6
|
|||
|
|||
|
TY for technical info. It helps us to learn...
|
|
#7
|
|||
|
|||
|
You can get information for Technical Analysis on www.equis.com I think its best site for T.A.
|
|
#8
|
|||
|
|||
|
Dear Traderji,
A very good and informative writeup. Thanx Can you just explain us how to calculate how oversold or overbought a security is. And also the significance of RSI and ROC as already has been pointed out.Also currently i am using FCharts. Can i get these charts in this software by putting some formulae or so. rgds Neeraj |
|
#9
|
|||
|
|||
|
sir plz tell me what is "mov" plzzzz
|
|
#10
|
|||
|
|||
|
'mov' stands for Moving Average. mov(close, 12, E) means a 12 day Exponential Moving Average of Closing prices.
Regards, Kalyan. |
| Sponsored Links |
|
|
![]() |
| Thread Tools | |
|
|
Similar Threads for: MACD - Moving Average Convergence Divergence
|
||||
| Thread | Thread Starter | Forum | Replies | Last Post |
| The Guppy Multiple Moving Average | Traderji | Technical Analysis | 41 | 4th May 2008 02:38 AM |
| MACD Convergence Divergence | gopu | Technical Analysis | 22 | 20th March 2006 12:41 PM |
| HOW TO TRADE MOVING AVERAGES | TATrader | Technical Analysis | 7 | 6th August 2005 11:10 PM |
| Technical Analysis - Moving Averages | MasterTrader | Technical Analysis | 10 | 26th July 2005 12:21 PM |
| need clarification | gopu | Technical Analysis | 11 | 21st October 2004 10:58 AM |
Indemnity, Disclaimer & Disclosure
Notice:
• By visiting Traderji.com you indicate your acceptance of our Forum
Rules Disclaimer & Disclosure and indemnify Traderji.com, its
associates and related parties of all claims howsoever resulting from
the usage of the forum.
• Disclaimer: Trading or investing in stocks & commodities
is a high risk activity. Any action you choose to take in the markets
is totally your own responsibility. Traderji.com will not be liable for
any, direct or indirect, consequential or incidental damages or loss
arising out of the use of this information.
• Disclosure: The information in this forum is neither an offer
to sell nor solicitation to buy any of the securities mentioned herein.
The writers may or may not be trading in the securities mentioned.
• All names or products mentioned are trademarks or registered trademarks of their respective owners.
General Content Disclaimer Notice:
In light of our policy of encouraging candid, open exchanges of views and the rapid distribution of information originating from many sources, Traderji.com cannot determine the accuracy of information that may be uploaded to the forum. Opinions, advice and all other information expressed by participants in discussions are those of the author. You rely on such information at your own risk. You are urged to seek professional advice for specific, individual situations and not rely solely on advice or opinions given in the discussions. Since Traderji.com is an open and free discussion forum, any comments made by members of this forum in their posts reflect their own views and not of the owner or administrator of Traderji.com. Thus the owner/administrator indemnify themselves of all claims whatsoever and will not be liable or responsible for any members comments/views in this forum Traderji.com. If you find any objectionable or offensive posts made by members of this forum which you would like to bring to our notice for removal then please Contact Us.