Looking Closer at MACD – Nelson Research

Moving Average Convergence Divergence, or MACD, is a trend-following (lagging) momentum indicator that shows the relationship between two different moving averages.  MACD is calculated when you subtract the 26-day Exponential Moving Average, or EMA, from the 12-day EMA.  The 9-day EMA of the MACD, or “signal line” can then be plotted on top of the MACD, triggering buy and sell signals.  There are three methods used to interpret the MACD.  1.) “Crossovers” — When the MACD falls down below the signal line, it is considered to be bearish, indicating that it is time to sell.  When the MACD goes above the signal line, the indicator is bullish, indicating that the price is probably going to experience upward momentum.  2.) “Divergence” — The price of the security diverges from the MACD, signalling the end of the current trend.  3.) “Dramatic Rise” — When the MACD experiences a dramatic rise, the signal indicates “overbought” status and will likely soon return to more normal levels.

The 9-day difference between a short-term and long-term moving average.  A value above 0 indicates a bullish signal while a value below 0 interprets as a bearish signal.  Force Protection Video Equipment Corp (FPVD)’s 9-Day MACD is -0.0033 and its 14-Day MACD is -0.0198.  It’s 20-Day MACD is -0.045, 50-Day MACD is -0.2904 and, finally, it’s 100-Day MACD is -0.7749.  The Open is the start of trading on a securities exchange.  The open indicates the start of an official business day for an exchange, meaning that transactions may begin for the day.  The different exchanges have different opening times.  Force Protection Video Equipment Corp (FPVD) opened at $0.0635.  Force Protection Video Equipment Corp (FPVD)’s high, highest trade price for the day, was $0.077.  Force Protection Video Equipment Corp (FPVD)’s lowest trade price for the day was $0.053.  Force Protection Video Equipment Corp (FPVD)’s last trade price was…

Continue reading from the original source…

Leave a Reply

Your email address will not be published. Required fields are marked *