Indicator Description

MACD (Moving Average Convergence Divergence) is a trend-following momentum indicator that displays price momentum changes by calculating the difference between two moving averages of different periods.

Function Information

• Function Name: MACD
• Input Parameters:
  • Close: Closing price
• Parameter Settings:
  • fastperiod: Fast period (default: 12)
  • slowperiod: Slow period (default: 26)
  • signalperiod: Signal period (default: 9)
• Output:
  • macd: MACD line
  • macdsignal: Signal line
  • macdhist: MACD histogram

Calculation Principle

MACD is calculated using the following formula:

MACD Line = FastMA - SlowMA
Signal Line = EMA(MACD Line, signalperiod)
MACD Histogram = MACD Line - Signal Line

Where:

• FastMA is the fast moving average
• SlowMA is the slow moving average
• EMA is Exponential Moving Average

Usage Scenarios

1. Trend Identification
2. Momentum Analysis
3. Trading Signal Generation
4. Divergence Analysis

Usage Recommendations

1. MACD line crossing above signal line is a buy signal
2. MACD line crossing below signal line is a sell signal
3. Watch for histogram changes
4. Pay attention to divergence patterns