Macd-smooth Similarities and Differences moving averages

Moving Average convergence and diver-gence)

Similar to moving average indicators, the difference is that the exponent needs to be processed smoothly. In the application, macd should first calculate the moving average value of the fast (12-day) and the moving average value of the slow (26-day), and use the two values as the measurement (fast and slow line) the basis for the "deviation value". The so-called "difference value" (DIF) is the value of the EMA on the 12 th minus the value of 26ema. As a result, the EMA on the 12th was above the EMA on the 26th in a sustained increase. The positive deviation value

(+ DIF) will increase. In the decline, the deviation value may become negative (-DIF. As for the extent to which the positive or negative deviation value is reduced when the market starts to turn around, it is exactly the signal of the reverse market, the reverse signal of macd is defined as the 9-day moving average value of the deviation value (9-day EMA ).

Exponential Smoothing of moving averages in macdAlgorithmThen, both increase the weight weights of the last day.

Calculation of EMA on the 12th:

Ema12 = (the previous day ema12 × 11/13 + today's closing price × 2/13 ).

Calculation of EMA on the 26th:

Ema26 = (the previous day ema26 × 25/27 + today's close × 2/27 ).

Calculation of the deviation value (DIF:

DIF = EMA12-EMA26

Then calculate the moving average deviation value macd of the smooth change on the 9 th Based on the deviation value.

Macd = macd x 8/10 + today's DIF x 2/10 on the previous day.

The calculated DIF and macd are both positive and negative values, forming two fast and slow lines moving up and down on the 0 axis. To facilitate judgment, you can also use DIF minus macd to draw a bar chart. As for the calculation of the mobile cycle, different products still have different days. In the foreign exchange market, some people use the EMA on the 25 and 50 days to calculate the deviation value.

Judgment skills:

1. The DIF and macd values are both online and upward on the X axis. The market is a bull market, and vice versa.

2. on the X axis, when the DIF value goes up through the macd value, it is the buy signal. If this cross occurs under the X axis, it is only suitable for the short seller to close the position.

3. Under the X axis, when the DIF value goes down through the macd value, it is the sell signal. This cross on the X axis is only suitable for closed positions of multiple users.

4. deviation signal. When the trend of the exponential curve is upward, and the trend of the DIF and macd curves is relaxed with the back track, the trend is about to turn down.

When ADX in DMI indicates that the market is in consolidation or the market range is too small, avoid using macd transactions.