[Edit this paragraph ]MACD formula algorithm
Difference (difference) The difference between short-term and long-term indicators smma.
M-day index smma of DEA difference line.
The DIFFerence between MACD line diff line and DEA line, color column line
Parameters: SHORT (short), LONG (long), m days, generally12,26,9.
The formula is as follows:
Weighted average index (DI)= (the highest index of the day is twice the closing index of the day, while the lowest index of the day)
Twelve-day smoothing coefficient (l12) = 2/(12+1) = 0.1538.
On the 26th day, the smoothing coefficient (L26) = 2/(26+1) = 0.0745438+0.
12 daily average index (12 EMA)=L 12× closing index of the day+11(12+1)× yesterday's EMA.
26-day index average (26-day moving average) =L26× closing index of the day +25/(26+ 1)× yesterday's 26-day moving average.
EMA (Exponential Moving Average) is an exponential average. Also known as EXPMA indicator, it is also a trend indicator, and the exponential average index is a moving average with decreasing weighted index. The weight of each value decreases exponentially with time, and newer data is heavier, but older data is also given a certain weight.
Diffraction ratio (DIF)= 12 EMA-26 EMA
Nine-day dif average (DEA)= DIF sum of the past nine days /9.
Bar = dif-DEA
MACD= (DIF of the day-DIF of yesterday) × 0.2+MACD of yesterday.
[Edit this paragraph] Application principle
In the existing technical analysis software, MACD[ 1]? Commonly used parameters are 12 fast smma and 26 slow smma. In addition, MACD has an auxiliary indicator bar. In most futures technical analysis software, columns? Lines are colored, green below the 0 axis and red above the 0 axis. The former represents weakness, while the latter represents strength.
Let's talk about the basic principles that should be followed when using MACD indicators in the stock market:
1. When both DIF and MACD are above the zero line, DIF breaks through MACD upward, indicating that the stock market is in a strong position and the stock price will rise again. You can buy more stocks or hold stocks to be increased, which is a form of MACD indicator "golden cross".
2. When both DIF and MACD are below the zero line, DIF breaks through MACD upward, indicating that the stock market is about to strengthen, the stock price decline has stopped falling upward, and you can start buying stocks or holding shares. This is another form of MACD indicator "golden cross".
3. When both DIF and MACD are above the zero line, when DIF breaks through MACD downward, it indicates that the stock market will soon turn from strong to weak, and the stock price will plummet. At this time, most stocks should be sold rather than bought, which is a form of MACD indicator "death cross".
4. When both DIF and MACD are below the zero line, DIF breaks through MACD downward, which indicates that the stock market will once again enter an extremely weak market, and the stock price will fall. You can sell the stock again or wait and see. This is another form of MACD indicator "death cross".
4. Form and deviation. MACD indicators also emphasize morphology and deviation. When the DIF line and MACD line of MACD indicators form a high bearish pattern, such as head and shoulders, double heads, etc. We should be vigilant; When the morphological MACD indicator DIF line and MACD line form a low bullish pattern, you should consider buying. When judging the shape, DIF line is the main one and MACD line is the auxiliary one. When the price continues to rise and MACD indicators come out one after another, it means that the top deviation appears, indicating that the price may turn around in the near future. When the price continues to fall, but MACD indicators come out one after another, it means that the bottom deviation appears, indicating that the price is about to end the decline and turn to rise.
5. The index of cowhide market will be distorted. When the price does not run from top to bottom or from bottom to top, but keeps running horizontally, we call it cowhide market. At this time, a false signal will be generated in the MACD indicator, and the intersection of the DIF line and the MACD line will be very frequent. At the same time, the retraction of column lines will occur frequently, and the color will often turn from green to red or from red to green. At this point, the MACD indicator is in a distorted state, and its use value will be reduced accordingly.
The curve shape of DIF is used for analysis, mainly using the deviation principle of indicators. Specifically: if the trend of DIF deviates from the trend of stock price, it is time to take concrete action. However, the accuracy of guiding the actual operation according to the above principles is not satisfactory. After practice, exploration and summary, the accuracy is greatly improved by comprehensively using 5-day, 10 moving average, 5-day, 10 moving average and MACD.