Financial Time Series | ![]() ![]() |
Moving Average Convergence/Divergence (MACD)
Syntax
[macdvec, nineperma] = macd(data) [macdvec, nineperma] = macd(data, dim) macdts = macd(tsobj, series_name)
Arguments
data |
Data vector |
dim |
Dimension. Default = 2 . |
|
Financial time series object |
series_name |
Data series name |
Description
[macdvec, nineperma] = macd(data)
calculates the Moving Average Convergence/Divergence (MACD) line, macdvec
, from the data vector, data, as well as the nine-period exponential moving average, nineperma
, from the MACD line.
When the two lines are plotted, they can give you an indication whether to buy or sell a stock; when an overbought or oversold condition is occurring; and when the end of a trend may occur.
The MACD is calculated by subtracting the 26-period (7.5%) exponential moving average from the 12-period (15%) moving average. The 9-day (20%) exponential moving average of the MACD line is used as the signal line. For example, when the MACD and the 20% moving average line have just crossed and the MACD line falls below the other line, it is time to sell.
[macdvec, nineperma] = macd(data, dim)
lets you specify the orientation direction for the input. If the input data is a matrix, you need to indicate whether each row or each column is a set of observations. If orientation is not specified, macd
assumes column-orientation (dim = 2
).
macdts = macd(tsobj, series_name)
calculates the Moving Average Convergence/Divergence (MACD) line from the financial time series tsobj
, as well as the nine-period exponential moving average from the MACD line. The MACD is calculated for the closing price series in tsobj, presumed to have been named 'Close'
. The result is stored in the financial time series object macdts. macdts has the same dates as the input object tsobj
and contains only two series named MACDLine
and NinePerMA
. The first series contains the values representing the MACD line and the latter is the nine-period exponential moving average of the MACD line.
Example
Compute the MACD for Disney stock and plot the results.
load disney.mat dis_CloseMACD = macd(dis); dis_OpenMACD = macd(dis, 'OPEN'); plot(dis_CloseMACD); plot(dis_OpenMACD); title('MACD for Disney')
See Also
![]() | log10 | max | ![]() |