TradingSolutions Home  |  Products  |  Services  |  Downloads  |  Resources  |  Support  |  Order NeuroDimension Home  
     Financial Books
     Other Products
     System Development
     Custom Software
     Free Evaluation Copy
     Product Updates
     Free Systems
     Sample Performance
     Video Tour
     Data Sources
     TradingSolutions FAQ
     Online Brokers
     Customer Interviews
     Customer Quotes
     News and Reviews
     How to Get Help
     Licensed User Center
     Contact NeuroDimension

   ND Corporate Website

TradingSolutions Function Library

  MACD Signal Line [MACDSignal]  
Return to Complete List of Functions
The MACD Signal Line function calculates the signal line for the MACD (Moving Average Convergence/Divergence), which is the difference between a short and a long term moving average for a field. The signal line is a moving average of the MACD used for generating entry/exit signals.

Data               The data to use in the calculation. This is typically a field in a data series or a calculated value.

The period of the moving average used in the MACD Signal Line are fixed by definition. To experiment with variations of the MACD Signal Line, try creating moving averages of the MACD.

Function Value
The MACD Signal Line is a 9-day exponential moving average of the MACD (Moving Average Convergence/Divergence). The MACD is calculated by subtracting the value of a 26-day exponential moving average from the value of a 12-day exponential moving average.

The value of the MACD at the beginning of a data series is considered to be zero. Similarly, the MACD Signal Line at the beginning of a data series is considered to be zero. Since both the MACD and the MACD Signal Line use exponential moving averages, their initial values will include these zero values in their calculation. Therefore, you may want to ignore values before the 34th value, when the effect on the signal line moving average on the longer MACD moving average is no longer significant.

The MACD is traditionally traded against a 9-day exponential average of its value, called its signal line. When the MACD increases above its signal line, a buy signal is generated. When the MACD decreases below its signal line, a sell signal is generated. See the sample entry/exit systems for examples using the MACD.

The MACD is a specific instance of a Value Oscillator and is typically used on the closing price of a security to detect price trends. When the MACD is increasing, prices are trending higher. When the MACD is decreasing, prices are trending lower.

See the sample entry/exit systems for an example of using the MACD Signal Line in an entry/exit system.

This indicator is based on entries in "Technical Analysis From A To Z" by Steven B. Achelis.
It was originally developed by Gerald Appel.

TradingSolutions Home  |  Products  |  Downloads  |  Resources  |  Support  |  Order

Contact NeuroDimension | Privacy Policy
Webmasters, join our affiliate program. Interested in selling our software? Become a reseller!
Web Site Design and Implementation Copyright 2010 NeuroDimension, Inc.
Risks of Forex Trading.