Blog : MACD Indicator
MACD
The MACD is a popular technical analysis indicator used to identify a security's momentum, trend direction, and duration. It combines two different types of indicators: two Moving Averages of varying lengths to identify trend direction and duration, and the difference between these Moving Averages (MACD Line) and an EMA of these averages (Signal Line). This difference is plotted as a histogram oscillating above and below a zero line, providing a good indication of a security's momentum.
| MACD Inputs | |||
|---|---|---|---|
| Trend Following | Mean Reversion | ||
| Fast Length | 12 | Fast Length | 12 |
| Slow Length | 26 | Slow Length | 26 |
| Signal Smoothing | 9 | Signal Smoothing | 9 |
| Source | close | Source | close |
| MACD | Long - Entry Trigger | Long - Exit Trigger | Short - Entry Trigger | Short - Exit Trigger |
|---|---|---|---|---|
| Trend Following | MACD crossover Signal and MACD > 0 | MACD crossunder Signal | MACD crossunder Signal and MACD < 0 | MACD crossover Signal |
| Mean Reversion | MACD crossover Signal and MACD < 0 | MACD crossover 0 | MACD crossunder Signal and MACD > 0 | MACD crossunder 0 |
| MACD | Long - Entry Confluence | Long - Exit Confluence | Short - Entry Confluence | Short - Exit Confluence |
| Trend Following | MACD > Signal and MACD > 0 | MACD < Signal | MACD < Signal | MACD > Signal |
| Mean Reversion | MACD < Signal and MACD < 0 | MACD > 0 | MACD > Signal and MACD > 0 | MACD < 0 |