What is MACD indicator?
MACD is a technical indicator that captures multiple aspects of stock performance. It not only helps identify trends, but it can also measure momentum.
How to calculate MACD?
MACD Line: First, we calculate two different Moving Averages (one fast and one slow). Then, we take the difference in values between those two Moving Averages and that is called the MACD Line.
Signal Line: We then calculate an EMA of the MACD line and that is called Signal line. Signal line is thus an indicator of an indicator.
Histogram: Finally, we calculate difference between MACD and Signal line and display as a MACD histogram which oscillates above and below zero. The MACD histogram values are plotted as red and green bars. A bar is green when the MACD histogram value is greater than 0. A red bar indicates that its value is less than 0.
Three different elements are shown on the chart typically when you view MACD indicator.
•MACD Line = (12-day EMA – 26-day EMA)
•Signal Line = 9-day EMA of MACD Line
•MACD Histogram = MACD Line – Signal Line
What trading signals are observed from MACD indicator?
Four key signals observed using the MACD indicator are below.
•Bullish Signal Line Crossovers occur when MACD Line crosses above Signal Line.
•Bearish Signal Line Crossovers occur when MACD Line crosses below Signal Line.
•Bullish Zero Line Crossovers occur when MACD Line crosses above the Zero Line and go from negative to positive.
•Bearish Zero Line Crossovers occur when MACD Line crosses below the Zero Line and go from positive to negative.
Is there a free version of this template?
We have a free MACD template you can use to calculate MACD indicator for any stock symbol.
MACD Indicator Excel Template - Technical Analysis - Stock Market
Does the template consider fees?
The template assumes no commissions or fees in its profit calculation. If you need any assistance with incorporating this, please contact us.
Can the template handle short trading?
Yes, the template handles Short trading actions.
Does it work for international exchanges?
Yes, please see this article for exchanges supported by Microsoft
Example of how the template decides trading decision?
Bullish SLC on day one, then trade is entered on day two.