Moving Average Convergence Divergence, or MACD, is a momentum and trend-following technical indicator which shows the difference between the fast EMA (generally 12-days) and the slow EMA (generally 26-days) of an asset’s price. The result of this calculation is the MACD. A shorter (generally 9-days) EMA is also calculated together with the MACD, which is called a signal line.
How can it be used within the Capitalise Platform?
The following properties can be set for any given MACD:
Fast: Number of bars used to calculate the fast EMA. The default setting is 12.
Slow: Number of bars used to calculate the slow EMA. The default setting is 26.
Signal: Number of bars used to calculate the signal line. The default setting is 9.
Bar Period (BarPeriod): The period of time each bar represents. This can be 1 minute, 5 minute, 15 minute, 30 minute, 1 hour, 2 hour, 4 hour, Day, Week, or Month. The default setting is day.
Bar Price (BarPrice): The price you want to base the calculation of your EMA. Choose between the open, close, high, low or Mid of each bar. The default setting is close.
The maximum number of bars that can be used when setting a condition (fast, slow, or signal) using MACD is 200.
Please note, the current (open) bar is not taken into account when calculating the MACD; only closed bars are considered.
When you write MACD within a strategy, a dialogue box will pop-up, allowing you to set these parameters.
Here are a few examples of using MACD within Capitalise:
Buy 2,000 EUR/USD if the MACD Line(12, 26, 9, 15m, Open) of EUR/USD is above the zero line
Sell 15 AAPL if the MACD Line (12, 26, 9, Day, Close) of AAPL crosses below the signal line
Please note that the examples we provided here are purely for the purposes of illustrating how to use the terms “MACD” and “Moving Average Convergence Divergence” and are not in any way to be taken as trading advice. This content is intended for informational and educational purposes only and should not be considered investment advice or as a recommendation. Past performance is not an indication of future results. Read our Disclaimer for more details.