1 thought on “What is the MACD indicator?”

  1. MACD is called the index smooth moving average, which is developed from the dual index moving average. The fast index moving average (EMA12) minus the slow index moving average (EMA26) to get the express line DIF, and then use 2 2 × (Express DIF-DIF's 9-day weighted mobile moving average DEA) obtained the MACD column.

    mACD's significance is basically the same as the dual moving average, that is, the discrete and slow moving average of the current multi -short state and the possible development trend of the stock price may be more convenient to read.
    Is when MACD shifts from negative numbers to positive numbers, it is the signal of buying. When MACD shifts from positive numbers to negative numbers, it is a signal for selling. When MACD changes from a large angle, it means that the gap between the fast moving average and the slow moving average is very rapid, representing a transformation of a market trend.
    The difference is an indicator in the analysis of the stock market, abbreviated as DIF, that is, the EMA value reduced the 26th day on the 12th. In the continuous rise, the EMA on the 12th was above EMA on the 26th.
    The positive difference ( DIF) between the between it will be larger and larger. On the contrary, the difference may become larger and larger. As for the market turning back, to what extent should the positive or negative difference from the value of the separation value to be reduced, it is really the signal of the market reversal. Essence
    Extension information:
    ACD should first calculate the fast (generally selected 12 days) moving average and slow (generally selected 26 days) average. Based on these two values ​​as the "difference value" basis between the two (fast and slow line). The so -called "difference value" (DIF), that is, the EMA value on the 12th minus the 26 -day EMA value.

    Therefore, in the continuous rise, the EMA on the 12th is above EMA on the 26th. The righteous difference between ( DIF) in the meantime will be larger and larger. On the contrary, the difference may become negative (-DIF), and it is getting bigger and bigger. As for the market rotation, the positive or negative difference is reduced to a certain degree, and it is really a signal of the market reversal.
    macd's reversal signal is defined as a 9 -day movement average (9 days) with a "difference value". In the MACD's similarities and moving average calculation formula, the weight of the T 1 trading day is added. Taking the current popular parameters 12 and 26 as an example, the formulas are as follows:
    First calculate the fast moving average. (Ie EMA1) and the slow moving average (ie EMA2), with the two values ​​as the basis for measuring the difference (DIF) between the two (fast and slow speed line) The smooth moving average DEA (also known as MACD, DEM) cable.
    The parameters of EMA1 are the parameters of EMA2 on the 12th, and the parameters of the DIF are for the 9th as an example to see the calculation process of MACD
    1. Calculating moving average (EMA)
    12 days The calculation of EMA is
    ema (12) = the previous day EMA (12) × 11/13 closed price × 2/13
    26 days of EMA Day EMA (26) × 25/27 today's closing price × 2/27
    2, calculating departure value (DIF)
    dif = Today EMA (12) -Today EMA (26)
    3,, Calculate the 9 -day EMA
    A calculation of the 9 -day EMA based on the discharge value, that is, the average value of the difference, is the MACD value required. In order not to confuse the original name of the indicator, this value is also known as
    DEA or DEM.
    DEA (MACD) = the values ​​of the DIF and DEA calculated by DEA × 8/10 today's DIF × 2/10 are all positive or negative.
    The (DIF-Dea) × 2 is the MACD column.
    The MACD indicator is formed by combining two lines and one pillar, the fast line is DIF, the slow line is DEA, and the column -like map is MACD. In various types of investment, there are the following methods for investors' reference:
    1. When DIF and DEA are greater than 0 (that is, it is expressed on the graphic as above the zero line) and moves upward In the market, you can buy open warehouses or multi -headed positions;
    2. When DIF and DEA are less than 0 (that is, it means that they are below the zero line) and move downward Among them, you can sell open warehouses or wait and see.
    3. When DIF and DEA are greater than 0 (that is, it is expressed on the graphic as above the zero line), but when it moves downward, it is generally indicated that the market is in the decline and can be sold and watched; r can be sold;
    4. When DIF and DEA are less than 0 (that is, it means that they are below the zero line), but when moving upward, it is generally indicated that the market is about to rise, the stock will rise, and you can buy open positions or long positions.
    The smooth and moving average, referred to as MACD, is an aggregation and separation of the average index index index index indicator and long -term index. Essence According to the MACD developed by the moving average principle, it overcomes the defects of frequent mobile signals of the mobile average, and the second can ensure the maximum fruit of the mobile average.
    The principle of buying and selling is:
    1.dif, DEA are all positive, DIF breaks the DEA upward, and buy signal reference.
    2.dif, DEA are negative, DIF falls below DEA, selling signal reference.
    3.dif lines and K lines are deviated, and the market may have reversal signals. The values ​​of
    4.dif, dea change from positive numbers to negative numbers, or from negative numbers to positive numbers, not trading signals, because they lag behind the market.

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