Category: Money tips Release Date: 2006-01-26
Smooth differences and similarities Moving Average (Moving Average Convergence and Diver-gence) is similar to moving average indicator, the difference is that of exponential smoothing operation to deal with. MACD in the application should first figure out quickly (12 days) moving average values and slow (26 days) moving average values, as two values, as measured between the two (fast and slow lines) between the "difference from the value "basis. The so-called "poor from the value of" (DIF) that is 12 EMA minus 26EMA numerical values. Thus, in the ongoing rally, the 12 EMA on the 26 EMA. During the positive deviation from the value of (+ DIF) will grow. On the contrary in the fall, the difference values may be changed from a negative (-DIF) is also increasing. As for the quotations for rotary, positive or negative deviation from the value should be reduced to what extent it really Quotes reversal signal, MACD reversal signal is defined as "deviation from the value" 9-day moving average (9 EMA) . In the MACD moving average of the exponential smoothing algorithms were all increased last day of weight weight.
12 EMA calculation: EMA12 = (one day before the EMA12 × 11/13 + today's closing price × 2 / 13).
26 EMA calculation: EMA26 = (one day before the EMA26 × 25/27 + today's close × 2 / 27).
Difference from the value (DIF) calculation: DIF = EMA12-EMA26
Difference can then be calculated from the value of 9, the smooth transaction moving average deviation from the value of MACD. MACD = one day before the MACD × 8 / 10 +, today DIF × 2 / 10. Calculated DIF and MACD are positive or negative, thus giving rise to the 0 axis under the two fast and slow moving lines, for the convenience of judgments can also be used to draw the DIF minus the MACD histogram. As for the mobile computing cycles, different commodities still have a different number of days. Some people in the foreign exchange market, the use of 25 and 50 day EMA to calculate the difference from the value of intervening.
Judged Skills:
1. DIF values and MACD values are in the X axis, upward mobility, the market as the bull market and vice versa for the bear market.
2. In the X-axis above the value when the DIF when the value of upward through the MACD buy signal. This occurs in the X-axis under the cross just for unwinding short person
3. Under the X-axis, when the DIF values down through the MACD sell signal when the value of. In the X-axis cross-over occurs only suitable for those who long liquidation.
4. Departure from the signal. When the index curve upward trend, while the DIF, MACD curve with the trend runs counter to the general trend is occurring or will soon turn signal. When the DMI in the ADX instructions Quotes or Quotes at the rate of consolidation is too small to refrain from the use of MACD trading.
