If your page isn't loading correctly please Click here
Basic ADVFN Video Help
ADVFN HomeHelpChartsStudiesMACD, Moving Average Convergence Divergence
Studies
  Accumulation/Distribution
  Adaptive Moving Average
  ADXR
  Aroon
  Average True Range
  Bid Offer spread
  Bollinger Bands
  Bollinger Band Width
  Buy/Sell Volume Ratio Moving Average
  CCI/MA Crossover
  CCI, The Commodity Channel Index
  Chaikin's Money Flow Persistence
  Chaikin Volatility
  Chande's Momentum Oscillator
  Chart Studies
  Choppiness Index
  Coppock Curve
  Delta Weighted Moving Average
  Detrended Price Oscillator
  Disparity index
  DMI Direction Movement Indictor
  Donchian Channels
  Exponential Moving Average
  Fast/Slow Kurtosis
  Fractal Dimension
  High/Low Moving Average
  Histogram
  Ichimoku Kinko Hyo
  JCM Study
  Keltner Bands
  Kurtosis
  Level 2 Scope
  Linear Regression
  Linear Regression Detrended Price
  MACD Histogram
  MACD, Moving Average Convergence Divergence
  MA Envelopes
  Mass Index
  Momentum
  Money Flow
  Moving Average
  On Balance Volume
  Parabolic SAR
  Path Length
  Point and Figure
  Price Oscillator
  Rate of Change
  Returns
  RSI, Relative Strength Index
  Skew
  Skew Bands
  Std Deviation
  Stochastics
  StochRSI
  The Chaikin Money Flow
  The Chaikin Oscillator
  Three Line Break
  Triple Moving Average
  True Strength Indicator
  Ultimate Oscillator
  Volatility
  Volatility Ratio
  Volume
  Volume+
  Volume Accumulation
  Volume AMA
  Volume Efficency
  Volume EMA
  Volume MA
  Volume Oscillator
  Volume Weight Moving Average
  VWAP
  Weighted Moving Average
  Williams %R
  ZigZag

MACD, Moving Average Convergence Divergence

The MACD of a stock, is formed by subtracting a long period or slow (exponential) moving average, from a shorter period (exponential) moving average. This is plotted as the red line. We plot the moving average of the MACD line itself as the blue or slow line. Finally we plot the difference between the fast and slow lines as a histogram around the origin.

The MACD is often interpreted one of three ways.

Using the cross between the fast and slow lines, when the fast line crosses above the slow line, that is a bullish (buy) signal, when the fast line below the slow line, that is a bearish (sell) signal.

Centerline cross over. It is bullish when the MACD line crosses to above the zero line, and bearish when is crosses below the zero line.

Finally Divergence. When the MACD moves in the opposite direction to the stocks trend, it may indicate that the trend is over.



Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P:43 V:us D:20171124 22:04:31