MACD

MACD

MACD stands for Moving Average Convergence Divergence and is a directional index commonly used in technical analysis for investments in stocks, futures, and precious metals. It indicates changes in momentum, period, direction, and strength in a financial market. When the MACD is below the signal line, it suggests a sell signal, and when it is above the signal line, it suggests a buy signal.From: Automotive, Mechanical and Electrical Engineering [2017], A clustering based variable sub-window approach using particle swarm optimisation for biomedical sensor data monitoring [2021], A High-Frequency Algorithmic Trading Strategy for Cryptocurrency [2020]

Study of MA and MACD directional expert systems based on funds management

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Published in Lin Liu, Automotive, Mechanical and Electrical Engineering, 2017

Fang Yu, Haiping Huang, Pin Wang

When carrying out technical analysis about investment in stocks, futures and precious metals, directional indexes such as Moving Average (MA) and Moving Average Convergence Divergence (MACD) are commonly used. The basic investment principle states that there is no index or method whose success rate is 100%. Thus, how can we increase the yield rate, avoid investment risks, and prevent uncertainties when analysing indexes? Funds management, also known as risk management, is a common method adopted by many investors.

A clustering based variable sub-window approach using particle swarm optimisation for biomedical sensor data monitoring

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Published in Enterprise Information Systems, 2021

Kun Lan, Simon Fong, Lian-Sheng Liu, Raymond K. Wong, Nilanjan Dey, Richard C. Millham, Kelvin K.L. Wong

MACD: the moving average convergence/divergence indicates the tendency changes which are occurred in a financial market regarding its momentum, period, direction and strength (Appel 2005). When calculating MACD, three exponential moving averages (EMAs) are required as follows by default parameter setting:

A High-Frequency Algorithmic Trading Strategy for Cryptocurrency

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Published in Journal of Computer Information Systems, 2020

Au Vo, Christopher Yost-Bremm

With this intuition, MACD formula can be read as a signal line. When MACD is under the signal line, it indicates a sell signal and vice versa. The formulae for MACD and the signal line are:

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Study of MA and MACD directional expert systems based on funds management

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