Moving Average Convergence/Divergence (MACD) Indicator [Oscillator]
Moving Average Convergence/Divergence (MACD) - one of the most popular technical indicators of the oscillator type among traders, which follows the trend and reflects the ratio of the two moving averages of the price.
MACD indicator является разностью между двумя экспоненциальными скользящими средними (EMA) с периодами в 12 и 26. Для четкого обозначения благоприятных моментов для покупки или продажи на график индикатора MACD наносится также сигнальная линия – 9-периодное скользящее среднее индикатора.
It is a standard indicator of trading MetaTrader terminal.
Using the MACD indicator and its trading signals
This indicator is most effective at significant market fluctuations in the trading corridor. The most frequently used MACD signals are crossings of its lines, overbought/oversold conditions and divergences (divergence).
The main rule of trading with MACD is based on the intersection of the indicator with its signal line. When the Convergence/Divergence of Moving Averages falls below the signal line, you should open short positions. When it rises above the signal line - long positions. The signal to buy The MACD crosses the zero line up or down as well.
Sufficiently confident determination of overbought/oversold conditions MACD indicator is also highly valued. If the short moving average is above the long moving average (MACD is rising), it means that price may be overvalued and will soon return to a more realistic level.
Если между индикатором и ценой появляется расхождение (дивергенция), это говорит о скором изменении тенденции. Бычья дивергенция возникает, если цена достигает новых максимумов, а индикатор за ней не успевает. Медвежья – если цена достигает новых минимумов, а MACD — нет. Особую значимость эти расхождения приобретают в Overbought/oversold zones.
The formula for calculating the MACD indicator
The MACD is formed by subtracting a 26-period exponential moving average from a 12-period moving average. After that, its 9-period simple moving average is plotted on the indicator's chart with a dotted line, which becomes the signal line.
MACD = EMA(CLOSE, 12)-EMA(CLOSE, 26),
SIGNAL = SMA(MACD, 9),
Where:
– EMA – экспоненциальное скользящее среднее;
- SMA - simple moving average;
– SIGNAL – сигнальная линия индикатора.