MACD (Moving Average Convergence Divergence)

MACD Line = (12-day EMA - 26-day EMA) Signal Line = 9-day EMA of MACD Line MACD Histogram = MACD Line - Signal Line EMA (Exponential Moving Average) = [Close - EMA(previous day)] x multiplier + EMA(previous day) EMA (previous day) = Simple Moving Average of past days Multiplier = 2 /(Time periods + 1)