Enter the 12-period exponential moving average and the 26-period exponential moving average to determine the moving average convergence divergence (MACD).

## MACD Formula

The following formula is used to calculate the moving average convergence divergence.

MACD = 12 EMA - 26 EMA
• Where MACD is the moving average convergence divergence
• 12EMA is the 12 period exponential moving average
• 26EMA is the 26 period exponential moving average

To calculate the moving average convergence divergence (MACD), subtract the 26 period exponential moving average from the 12 period average.

## MACD Definition

What is MACD?
MACD, short for moving average convergence divergence, is a metric or indicator used in finance that shows the relationship between the moving averages of a security. The MACD is considered a trend-following momentum indicator.

The moving averages used are the 12-period and 26-period exponential averages.

## Example Problem

How to calculate MACD?

First, determine the 12-period moving average. For this example, the exponential 12-period value is found to be $5.50. Next, determine the 26-period moving average. For this example, this moving average is found to be$3.50.

Finally, calculate the MACD using the formula above:

MACD = 12 EMA – 26 EMA

MACD = $5.50 –$3.50

MACD = \$2.00