MACD - Moving Average Convergence Divergence

[nitinsoni]

'mov' stands for Moving Average. mov(close, 12, E) means a 12 day Exponential Moving Average of Closing prices.

Regards,
Kalyan.

thanks sir ,,,,,
will u plz tell me how to find signal oe trigger line....
if 9 days macd =-11.27179487
-15.13304457
-18.43022832
-21.36727837
-24.32944215
-27.12083014
-28.03863322
-27.92051811
-26.89013789

 

[sudoku1]

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.

:thumb:.............

 

[K Gadkari]

Need afl to detect MACD divergence. When Close of Price is higher than previous and MACD value is lower in last 26 bars it should show on chart
or should come in Exploration.
Same for RSI . When Close of Price is higher than previous Close and RSI value is lower in last 14 bars it should show on chart or should
come in Exploration. Also for RSI if previous RSI is above 70 and next in 14 bars if RSI is below 70 and price close is higher it should
come in Exploration. I am on gmail . 108ket
Thanks
God Bless You