nastrojki-indikatora-macd.png In fact, the MACD is another one. It should be categorized as an indicator type, but because of its close relationship with the moving average system. Therefore brought together in this chapter. As mentioned earlier that The system uses two moving averages. Usually gives a slower signal but because the average movement is smoother thus making it possible to filter false signals well less error than Gerald Appel tried to find A system that will play a good part in filtering false signals. And meanwhile It had to give a faster signal than the two moving averages, which eventually became the source of the MACD. Appel noted that In the two moving average system, before the two mean lines close to intersect. (That is, it sends a buy or sell signal). The two lines will run closer together. Until finally intersecting As the two lines approach each other, the distance between the two lines shrinks by default. Therefore, he proposes to plot the distance between the two moving averages as the MACD line when the moving averages cross. When the short moving average line crosses the long moving average upward (Buy Signal in a two-line average system), the MACD crosses the 0 line upward, and when the short moving average line crosses the long moving line downward (Sell Signal), the MACD crosses the 0 line down. Appel proposes using the 12-day EMA (Smoothing constant = 0.15) as the short-term average and the 26-day EMA (smoothing constant = 0.075) as the long-term average. MACDpicwiki.gif MACD = EMA(12)-EMA(26) From the formula, you can see that this MACD is a special case of the aforementioned price oscillator, and by plotting the MACD line, it can be seen that this MACD line can change its trend, In some cases. Times, although the price is still rising. But the distance between the two moving averages has decreased, causing the MACD to trend downward. This causes a divergence depending on the price, or in other words, The price and the machine (MACD) trend in the opposite direction, so the MACD can give a signal of a change in direction. In addition, the principle of moving average can be applied to the MACD as a trading signal. Appel suggests using the dotted line of the 9-day MACD with a smoothing constant of 0.2 as a signal, If the MACD crosses its 9-day EMA. Upward, it is a buy signal, but if the MACD crosses the 9-day EMA downwards, it is a signal to buy. A sell signal Therefore, MACD has two levels of trading signals. The first level is a fast signal level. This is based on the intersection of the MACD line with its 9-day moving average. The second level is a level that gives a slow but sure signal: MACD crosses the 0 line, because this signal is the same as the system. Two moving average lines. The zero line can also be used as support or resistance. Because the 10-day ema does not fall through the Zero line down and can also bounce up It is equal that the sell signal does not occur. Plus, there is buying pressure or another support, so some people use it as a point to buy stocks again. But if it goes through That means by then the Zero line will become resistance.