{"id":2311,"date":"2010-02-11T22:06:28","date_gmt":"2010-02-11T16:36:28","guid":{"rendered":"http:\/\/www.niftylivecharts.com\/blog\/?p=2311"},"modified":"2010-02-11T22:06:28","modified_gmt":"2010-02-11T16:36:28","slug":"application-of-macd-in-stock-market","status":"publish","type":"post","link":"https:\/\/www.niftylivecharts.com\/blog\/application-of-macd-in-stock-market\/","title":{"rendered":"Application of MACD in Stock Market"},"content":{"rendered":"<h2><span style=\"text-decoration: underline;\">MACD Calculation<\/span><\/h2>\n<p>The standard periods originally published by Gerald Appel are 12 and 26 days:<\/p>\n<dl>\n<dd><img decoding=\"async\" src=\"http:\/\/upload.wikimedia.org\/math\/e\/6\/5\/e652f873b1b6c926901af35e1aaa41aa.png\" alt=\"MACD = EMA[12]\\,of\\,price - EMA[26]\\,of\\,price\" \/><\/dd>\n<\/dl>\n<p>A trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the &#8220;signal line&#8221;, is then plotted on top of the MACD, functioning as a trigger for buy and sell signals.<\/p>\n<p>A signal line (or trigger line) is then formed by smoothing this with a further EMA. The standard period for this is 9 days,<\/p>\n<dl>\n<dd><img decoding=\"async\" src=\"http:\/\/upload.wikimedia.org\/math\/4\/d\/f\/4dfa67429145ea396d5ee5df7c674799.png\" alt=\"signal = EMA[9]\\,of\\,MACD\" \/><\/dd>\n<\/dl>\n<p>The difference between the MACD and the signal line is often calculated and shown not as a line, but a solid block histogram style. This construction was made by Thomas Aspray in 1986. The calculation is simply<\/p>\n<dl>\n<dd><em>h<\/em><em>i<\/em><em>s<\/em><em>t<\/em><em>o<\/em><em>g<\/em><em>r<\/em><em>a<\/em><em>m<\/em> = <em>M<\/em><em>A<\/em><em>C<\/em><em>D<\/em> \u2212 <em>s<\/em><em>i<\/em><em>g<\/em><em>n<\/em><em>a<\/em><em>l<\/em><\/dd>\n<dd>\n<\/dd>\n<dd><em><a class=\"highslide\" onclick=\"return vz.expand(this)\" href=\"https:\/\/www.niftylivecharts.com\/blog\/wp-content\/uploads\/2010\/02\/MACDpicwiki-300x201.gif\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2312\" title=\"MACDpicwiki-300x201\" src=\"https:\/\/www.niftylivecharts.com\/blog\/wp-content\/uploads\/2010\/02\/MACDpicwiki-300x201.gif\" alt=\"\" width=\"300\" height=\"201\" \/><\/a><br \/>\n<\/em><\/dd>\n<\/dl>\n","protected":false},"excerpt":{"rendered":"<p>MACD Calculation The standard periods originally published by Gerald Appel are 12 and 26 days: A trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the &#8220;signal line&#8221;, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-2311","post","type-post","status-publish","format-standard","category-general","entry","has-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/2311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/comments?post=2311"}],"version-history":[{"count":0,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/2311\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/media?parent=2311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/categories?post=2311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/tags?post=2311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}