MACD Calculator

Formula

The formula to calculate the MACD is:

\[ MACD = 12EMA - 26EMA \]

Where:

\(MACD\) is the moving average convergence divergence
\(12EMA\) is the 12 period exponential moving average
\(26EMA\) is the 26 period exponential moving average

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 moving averages used are the 12-period and 26-period exponential averages.

Example Calculations

Example 1:

12 Period EMA (12EMA): 50
26 Period EMA (26EMA): 45

Using the formula:

\[ MACD = 50 - 45 = 5 \]

Example 2:

12 Period EMA (12EMA): 30
26 Period EMA (26EMA): 35

Using the formula:

\[ MACD = 30 - 35 = -5 \]