When applying MACD, the fast moving average (generally 12 days) and the slow moving average (generally 26 days) should be calculated first. These two values are used as the basis to measure the "difference" between the two (fast and slow lines). The so-called differential deviation value (DIF) is the EMA value of 12 minus the EMA value of 26. Therefore, in the continuous upward trend, the average of 12 is above the average of 26. At the same time, the positive deviation (+DIF) will become larger and larger. On the contrary, in the downward trend, the deviation value may become negative (-DIF) and become larger and larger. As for the market turning point, the positive and negative deviation should be reduced to a certain extent, which is the real signal of market reversal. The inversion signal of MACD is defined as the 9-day moving average (9-day moving average) of "deviation value". In the index smma calculation formula of MACD, the weight of trading day T+ 1 is added respectively. Taking the commonly used parameters 12 and 26 as examples, the formula is as follows:
Calculation of EMA on 12: EMA12 = EMA12x113+today's closing date X 2/ 13.
Calculation of EMA on 26th: EMA26 = EMA 26 x 25/27 of the previous day+closing X 2/27 today.
Calculation of DIF: DIF = EMA 12-EMA26.
According to the deviation value, the EMA of 9 days, that is, the average deviation value, is the DEA value. To avoid confusion with the original name of the index, this value is also called DEA or DEM.
Today's DEA = (DEA X 8/10 of the previous day+DIF X 2/ 10 of today)
Use (DIF- data envelopment analysis) *2 as the MACD histogram.
Therefore, the MACD indicator is composed of two lines and one column, the fast line is DIF, the slow line is DEA, and the histogram is MACD. In various investments, there are the following methods for investors' reference:
1. When both DIF and MACD are greater than 0 (that is, graphically above the zero line) and move upward, it generally indicates that the market is in a long market and you can buy open positions or long positions;
2. When both DIF and MACD are less than 0 (that is, graphically below the zero line) and move down, it generally means that the market is in a short market, and you can sell and open positions or wait and see.
3. When both DIF and MACD are greater than 0 (that is, graphically above the zero line) but both move down, it generally means that the market is in a downward stage and you can sell and open positions.
4. When both DIF and MACD are less than 0 (that is, graphically below the zero line) but move upward, it generally means that the market is about to rise and the stock will rise, and you can buy open positions or long positions.