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Algorithm-Trading-Strategy-Using-MACD

What is MACD?

Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA.

The result of that calculation is the MACD line. A nine-day EMA of the MACD called the "signal line," is then plotted on top of the MACD line, which can function as a trigger for buy and sell signals. Traders may buy the security when the MACD crosses above its signal line and sell - or short - the security when the MACD crosses below the signal line. Moving Average Convergence Divergence (MACD) indicators can be interpreted in several ways, but the more common methods are crossovers, divergences, and rapid rises/falls.

MACD helps investors understand whether the bullish or bearish movement in the price is strengthening or weakening.

Using this I checked the prices of Tesla and AFFLE(NSE)

What is DMAC?

The Dual Moving Average Crossover trading system uses two moving averages, one short and one long. The system trades when the short moving average crosses the long moving average.

Apple Stock Price using DMAC

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