Moving Average Convergence/Divergence (MACD)

[macdvec, nineperma] = macd(data) [macdvec, nineperma] = macd(data, dim) macdts = macd(tsobj, series_name)

| Data matrix |

| Dimension. Default = 1 (column orientation). |

| Financial time series object |

| Data series name |

`[macdvec, nineperma] = macd(data)`

calculates
the Moving Average Convergence/Divergence (MACD) line, `macdvec`

,
from the data matrix, 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 of whether to buy or sell a stock, when an overbought or oversold condition is occurring, and when the end of a trend might 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 is a set of
observations (`dim = 2`

) or each column is a set
of observations (`dim = 1`

, the default).

`macdts = macd(tsobj, series_name)`

calculates
the 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`

.
The `macdts`

object 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 second is the nine-period exponential moving average of the MACD
line.

Achelis, Steven B., *Technical Analysis From A To
Z*, Second Printing, McGraw-Hill, 1995, pp. 166-168.

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