Charting
and Historical Backtesting Software by Ashkon Technology LLC
Interpretation:
A buy signal is
generated when MACD is rising above the signal line.
A sell signal is
generated when MACD is falling below the signal line.
Calculation:
Parameters: n1,n2,n_sig
- number of days;n1<n2
Notes:
Usually MACD (Moving Average Convergence Divergence) is calculated by subtracting
26-day simple moving average from 12-day simple moving average. Signal
line is usually calculated as a 9-day simple moving average of MACD.
Convergence - Divergence is the difference between MACD and signal line. (shown
in blue color on the chart)
