The difference between two Exponential Moving Averages.
The MACD indicator was developed by Gerald Appel.
The technique is used to signal trend changes and indicate the start of new trend
direction.
The Signal output indicator is an exponential moving average of the MACD.
When the MACD line(Diff Output Indicator) crosses above the signal Ouput Indicator
aline a BUY signal is generated.
When the MACD line (Diff output Indicator) crosses below the signal Output Indicator
line a SELL signal is generated.
The crossovers need to be detected via a condition.
Here
are examples of how to construct an MACD
intraday and EOD
system
Study Name Expanded in a 3 minute timeframe:
I3_MACD(26,12,9)(I3CloseI3)_I3
This study calculates the MACD on 3 minute time frame
given a Period1 of 26, a period2 of 12 and a smoothing value of 9.
The averages are based on the Close series of the 3 minute timeframe.
The output indicators names are appended to the studyname,
that is if the studyname is sn1 then
the outputindicator is
sn1::Short
sn1::Long
sn1::Diff
sn1::Signal
