macd

Moving Average Convergence/Divergence (MACD)

Using a fints object for the Data argument of macd is not recommended. Use a matrix, timetable, or table instead for financial time series. For more information, see Convert Financial Time Series Objects fints to Timetables.

Syntax

[MACDLine,SignalLine] = macd(Data)

Description

[MACDLine,SignalLine] = macd(Data) calculates the Moving Average Convergence/Divergence (MACD) line from the series of data and the nine-period exponential moving average from the MACDLine.

Examples

Calculate the Moving Average Convergence/Divergence for a Stock

Load the file SimulatedStock.mat, which provides a timetable (TMW) for financial data for TMW stock.

load SimulatedStock.mat
[MACDLine, signalLine]= macd(TMW);
plot(MACDLine.Time,MACDLine.Close,signalLine.Time,signalLine.Close);
legend('MACDLine','NinePerMA')
title('MACD for TMW')

Input Arguments

Data — Data with high, low, open, close information

matrix | table | timetable

Data with high, low, open, close information, specified as a matrix, table, or timetable. For matrix input, Data is an M-by-4 matrix of high, low, opening, and closing prices. Timetables and tables with M rows must contain variables named 'High', 'Low', 'Open', and 'Close' (case insensitive).

Data Types: double | table | timetable

Output Arguments

MACDLine — MACD series

matrix | table | timetable

MACD series, returned with the same number of rows (M) and type (matrix, table, or timetable) as the input Data. The MACDLine is calculated by subtracting the 26-period (7.5%) exponential.

SignalLine — Nine-period exponential series

matrix | table | timetable

Nine-period exponential series, returned with the same number of rows (M) and type (matrix, table, or timetable) as the input Data. The nine-period (20%) exponential moving average of the MACDLine is used as the SignalLine.

More About

MACD

The MACD is calculated by subtracting the 26-period (7.5%) exponential moving average from the 12-period (15%) moving average.

The nine-period (20%) exponential moving average of the MACD line is used as the "signal" line. When the two lines are plotted, they can give you indications on when to buy or sell a stock, when overbought or oversold is occurring, and when the end of trend may occur. For example, when the MACD and the 20-day moving average line have crossed and the MACD line becomes below the other line, it is time to sell.

References

[1] Achelis, S. B. Technical Analysis from A to Z. Second Edition. McGraw-Hill, 1995, pp. 166–168.