MACD (Moving Average Convergence /
Divergence) Quotes
MACD is one of the most popular tools in technical analysis. It shows the
relationship between two exponential moving averages.
The standard periods recommended by Gerald Appel (creator of MACD)
are 12 and 26 days. The standard period for MACD Signal Line is 9 days. You can
see the daily MACD quotes for indexes and exchanges below.
Delayed Quotes - U.S. Market open in 6 hours and 23 minutes.
MACD is one of the most frequently used indicators in technical
analysis. It was created by Gerald Appel in the 1960s and is
calculated as the difference between two
exponential moving averages
(EMA) applied to the close price:
MACD = Fast Exponential Moving Average – Slow Exponential Moving
Average
12- and 26-bar period settings traditionally are
the most popular settings for fast and slow EMAs, respectively. A
signal line (or trigger line) is then formed by applying an
exponential or simple moving average to the MACD line. The standard
period for the Signal Line (MACD Signal) is 9 bars:
MACD Signal = MA applied to MACD
The difference
between the MACD and the MACD signal line is
MACD
Histogram. This construction was created by Thomas Aspray in
1986.
MACD Histogram = MACD – MACD Signal Line.
How to Use MACD:
There are three common ways in technical analysis to interpret
the MACD:
Crossovers of the MACD and the MACD Signal
Line - when the MACD falls below the signal line, it
indicates that it may be time to sell. Conversely, when the MACD
rises above the signal line, it suggests that the price is
likely to rise. Crossovers of MACD and the Signal Line are
equivalent to the moments when the MACD Histogram crosses zero
line.
Crossovers of the MACD and the zero line -
A crossing of the MACD line up through zero is interpreted as
bullish, or down through zero as bearish.
Divergence of the price and the MACD
- When the security price diverges from the MACD, it signals the
end of the current trend.
Like other lagging (trend-following) indicators, the MACD may
generate false signals when it is too late to open / close a trade.
It is a good idea to use this indicator in conjunction with other
leading (trend-predicting) technical indicators, including
volume-based
indicators. Leading technical indicators may permit the use of a
tighter MACD setting.
