MACD

Parameter Default Acceptable Values

Fast Len

12

1 to 1,000

  Slow Len

26

1 to 1,000

Source 

Close

Open, High, Low, or Close

  Oscillator

Off

Off or On

Smoothing

9

1 to 1,000

Example

5 Period exponential versus 8 period simple MA with a 9 period exponential MA of the MACD line: 5, 8, Close, On, 9

8 Period exponential versus 5 period simple MA with a 10 period exponential MA of the MACD line: 8, 5, Close, On, 10

Description

MACD ( Moving Average Convergence - Divergence) depicts trend reversals.  The blue line depicts the arithmetic difference between the exponential Fast Len Moving Average and the simple Slow Len Moving Average.  The red line is an exponential moving average of the blue line over the smoothing Length.  When the blue MACD line crosses above the red exponential moving average line, a buy signal occurs.  The difference between the red and blue line is presented in a histogram at the bottom of the indicator window.  When the histogram crosses the zero line, the trend is confirmed.

ErlangerQuote Special

The study label, the text box that shows its current value, can be placed on either the left or the right axis.