Calculate MACD from closing prices or fast and slow EMAs, with signal line and histogram for standard or custom periods in one step.
MACD Formula
The following formula is used to calculate the moving average convergence divergence.
- 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 standard moving average convergence divergence (MACD), subtract the 26-period exponential moving average from the 12-period exponential moving average. The standard signal line is a 9-period EMA of MACD, and the histogram is MACD minus the signal line.
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 standard moving averages are the 12-period and 26-period exponential averages; other periods can be selected. From Prices uses oldest-to-newest closing prices at equal intervals and initializes each EMA with a simple average. Earlier history or another initialization method can produce different chart values.
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
