
Discuss MACD Moving Average Convergence Divergence at the Technical Analysis within the Traderji.com  Online community for Indian investors & traders!; hi guys and gurus Though I am able to understand a bit about Moving Averages ... 

Technical Analysis Discussion of all the principles involved in technical analysis. 

Thread Tools 
#1




MACD Moving Average Convergence Divergence
hi guys and gurus
Though I am able to understand a bit about Moving Averages and MACD, yet I need some clarification. MACD is constructed by making an average of the difference between two moving average. The difference of the original two moving average and the moving average of the difference can be plotted as t wo lines, one fast and one slow. Can anyone please help me understanding the complete and true meaning, of the afore stated statement. I will be highly obliged. Thanking you in advance. Adultvish Advertisements 
Advertisements 
#2




Re: Use of MACD
Quote:

#3




Re: Use of MACD
adultvish,
I read a new site that uses elliott wave primarily, but uses the MACD as a confiormation in their studies. They deal with the forex markets and seem to know what they are talking about with the MACD. www.capitalcurrencymarkets.com hope it helps out Y 
#4




Re: Use of MACD
Thanks SRINIPYT,
A great video for all TA to view. 
#5




Moving Average Convergence  Divergence
Hi All,
Can anyone explain me how it is being calculated and populated. Can anyone taken an example of some stock and explain me. It would be helpful for me to understand it. Thanks a Lot Raj 
#6




Re: MACD Moving Average Convergence Divergence
MACD is calculated as below:
1st step : calculate 12days ema of close (exponential moving average)(lets call it Fast mov average) 2nd Step: calculate 26days ema of close (lets call this as slow moving average) 3rd step: take difference of the abv 12days ema and 26days ema. This is MACD 4th step : calculate 9 days ema of the diff in step 3 . This is signal line. buy when macd crosses the siganl line from below. Sell when macd pierces signal line from above. The best use of MACD is finding divergences wrt Price and macd. price falling and macd making hihger bottoms is a positive divergence and Price going up and MACD making lower tops is negative divergence. MACD as an indicator for trading signals is good for delivery stocks. I use it for whose fundamentals are good. One such stock is ESAB. I am attaching chart of esab with macd. I always bot few hundred shs of esab whenever it gave a buy signal. I just sold few shs in Oct meltdown at 390 but it bounced back. As I know the fundamentals of this company I like to add on macd signals. Last edited by tanewbie; 2nd August 2008 at 01:19 PM. 
#7




Re: MACD Moving Average Convergence Divergence
attached chart of Garden Silk. An example of negative divergence wrt price and macd.
Last edited by tanewbie; 2nd August 2008 at 01:19 PM. 
#8




Re: MACD Moving Average Convergence Divergence
Sir,
Thanks for explaining MACD calculation in simple words. This will enable me set up an excel sheet to follow the indicator. Regards. Srisrini 
#9




Re: MACD Moving Average Convergence Divergence
Really Thanks you for ur help. I will just put it what I understood. Please correct me If I miss out anything.
Calculate last 12 days close of particular stock and find it average price. Formula = (day1 close + day2 close ... + day close12)/12  Fast Mov Avg Similary like above for 26 days  Slow Mov Avg. The difference is MACD. If the Fast Mov Avg  80 and Slow Mov Avg  70. Then difference is 10. 4th step is confusing. I interpreted it that instead of 26days use 9 days ema. This is signal Line. Here the difference is 15. Buy if MACD > Signal Sell if MACD < Signal. Please correct me if I am wrong. Regards Raj 
#10




Re: MACD Moving Average Convergence Divergence
Quote:
Thanks to u for putting up the explanation. I just wrote what I understood. Please correct me If I am wrong anywhere Advertisements 
Bookmarks 
Thread Tools  


Similar Threads for: MACD Moving Average Convergence Divergence  
Thread  Thread Starter  Forum  Replies  Last Post 
MACD  Moving Average Convergence Divergence  Traderji  Technical Analysis  11  21st February 2013 03:35 PM 
MACD Convergence Divergence  gopu  Technical Analysis  26  3rd June 2010 01:30 PM 
Macd  Masterchief  Technical Analysis  6  22nd March 2010 12:37 PM 
MA vs MACD  sgkalai  Technical Analysis  9  7th December 2007 12:01 AM 
Metastock  missing MACD histogram  cmlee  MetaStock  3  24th February 2005 09:24 PM 
Indemnity, Disclaimer & Disclosure
Notice:
• By visiting Traderji.com you automatically indicate that you agree to our Forum Rules, Indemnity, Disclaimer & Disclosure Notice and General Content Disclaimer Notice and indemnify Traderji.com, its
associates and related parties of all claims howsoever resulting from
the usage of the forum/site.
• 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. You are recommended to make appropriate enquiries and seek appropriate advise before sending money, incurring any expenses, acting on recommendations or entering into any commitment in relation to any advertisement published here. Traderji.com does not vouch for any claims made by the advertisers of products and services. Traderji.com will not be held liable for any consequences in the event such claims are not honoured by the advertisers. Traderji.com will not be liable for
any, direct or indirect, consequential or incidental damages or loss arising out of the use of any information by anybody mentioned anywhere on this site.
• 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 or legality of any 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. Although we constantly delete all irrelevant content and/or SPAM, if you should 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.