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Charting and Studies User Guide - CQG.com

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Moving Average Convergence/Divergence (MACD)<br />

Page 293<br />

The MACD is a specific type of OSCILLATOR study. It measures the difference between two<br />

exponential moving averages of different lengths, in addition, a trailing moving average of the<br />

MACD is plotted (MACDA), this is <strong>com</strong>monly referred to as the “Trigger” line. The two moving<br />

averages have different sensitivities to market action, thereby providing an indication of a<br />

change in the market environment, such as the emergence of a new trend or a trend reversal.<br />

Gerald Appel defined the MACD with its default parameter values.<br />

Calculation<br />

MACD = Exponential MA1 - Exponential MA2<br />

MACDA = Exponential MA of MACD<br />

<strong>Charting</strong> <strong>and</strong> <strong>Studies</strong> <strong>User</strong> <strong>Guide</strong>

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