MACD (Moving Average Convergence Divergence) Calculator

Q: How is MACD calculated?

MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. The result of this calculation is the MACD line.

This calculator is designed for traders and financial analysts to compute the MACD, a valuable indicator used to identify changes in the strength, direction, momentum, and duration of a trend in a stock's price.

Results

MACD Line 0.00

Signal Line 0.00

Histogram 0.00

Data Source and Methodology

All calculations are based on industry-standard formulas and data sources. For more information, refer to the comprehensive guides on trading analysis.

The Formula Explained

The MACD is calculated using the formula:

MACD = EMA_short - EMA_long
Signal Line = EMA_signal (MACD)

Glossary of Terms

EMA: Exponential Moving Average, a type of moving average that gives more weight to recent prices.
MACD Line: The difference between the 12-period EMA and the 26-period EMA.
Signal Line: A 9-day EMA of the MACD line, used as a trigger for buy and sell signals.
Histogram: The difference between the MACD line and the signal line.

Frequently Asked Questions (FAQ)

What is MACD?

MACD, or Moving Average Convergence Divergence, is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price.

How is MACD calculated?

MACD is calculated by subtracting the 26-period EMA from the 12-period EMA. The result of this calculation is the MACD line.

What are the standard values for MACD?

The standard MACD uses the 12-period EMA, 26-period EMA, and a 9-period EMA for the signal line.

How do I interpret the MACD?

A MACD crossover above the signal line is a bullish signal, while a crossover below is a bearish signal.

Can MACD be used for any securities?

Yes, MACD can be applied to any security with historical data, including stocks, commodities, and indices.

Tool developed by Ugo Candido.
Content verified by the Calculator Academy Expert Team.
Last reviewed for accuracy on: October 5, 2023.