How to Calculate MACD ( Moving Average Convergence Divergence) in Excel
MACD ( Moving Average Convergence Divergence) is also known as a Hybrid Indicator since it inculcates Trend and Momentum concepts.
The most common moving average values used in the calculation of the MACD Line are the 26 period and 12
period exponential moving averages. The Signal Line is commonly created by using a 9 period exponential
moving average of the MACD values. Where as the histogram is the distance between MACD line and the signal line.
Formula:
MACD: (12-day EMA - 26-day EMA) Signal Line: 9-day EMA of MACD MACD Histogram: MACD - Signal Line
MACD can generate buy and sell signals using crossovers, crossunders and divergences. Zone above the zero line is bullish and the zone below it is bearish
