Moving Average Convergence/Divergence (MACD)
[macdvec, nineperma] = macd(data) [macdvec, nineperma] = macd(data, dim) macdts = macd(tsobj, series_name)
Dimension. Default = 1 (column orientation).
Financial time series object
Data series name
[macdvec, nineperma] = macd(data) calculates
the Moving Average Convergence/Divergence (MACD) line,
from the data matrix, data, as well as the nine-period exponential
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
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
as well as the nine-period exponential moving average from the MACD
line. The MACD is calculated for the closing price series in
presumed to have been named
Close. The result is
stored in the financial time series object
macdts object has the same dates as the input
tsobj and contains only two series, named
The first series contains the values representing the MACD line and
the second is the nine-period exponential moving average of the MACD
This example shows how to 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')
Achelis, Steven B., Technical Analysis From A To Z, Second Printing, McGraw-Hill, 1995, pp. 166-168.