DEUSHARVEST
Moving Average Convergence Divergence (MACD)
The Moving Average Convergence Divergence (MACD), developed by Gerald Appel, is a widely used trend-following momentum indicator that shows the relationship between two Exponential Moving Averages (EMAs) of a security’s price. The MACD is composed of three main elements: the MACD line itself (the difference between two EMAs), a ‘signal line’ (an EMA of the MACD line), and a histogram (the difference between the MACD and signal lines). Traders use the MACD to identify changes in the direction, strength, and momentum of a price trend, often looking for crossovers between the MACD line and the signal line as potential buy or sell signals.
MACD
=MACD(data, shortPeriod, longPeriod, signalPeriod) Example Usage
=MACD(A2:F500, 12, 26, 9)
Parameters
| Parameter | Type | Description | Status |
|---|---|---|---|
data | Range | The input range of columns containing the Date, Open, High, Low, Close, and Volume data. | Required |
shortPeriod | Number | Number of periods (days) used for calculating the short-term Exponential Moving Average (EMA). Typically 12 periods. | Required |
longPeriod | Number | Number of periods (days) used for calculating the long-term EMA. Typically 26 periods. | Required |
signalPeriod | Number | Number of periods (days) used for calculating the EMA of the MACD line itself, known as the signal line. Typically 9 periods. | Required |
Returns
A four-column array of dates with corresponding MACD line, signal line, and histogram values.
