Moving Average Convergence

Divergence (MACD)
Presented By: Admin Group 3
Table of contents

01 02
Introduction EMA

03 04
Calculation Of Conclusion &
MACD Interpretation
Introduction
Moving averages are usually calculated to identify
the trend direction of a stock or to determine its
support and resistance levels. 

By calculating the moving average, the impacts of

random, short-term fluctuations and market
volatility on the price of a stock over a specified
time-period are mitigated.

A rising moving average indicates that the security

is in an uptrend, while a declining moving average
indicates that it is in a downtrend.
 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.
 Exponential Moving Average (EMA)

An exponentially weighted moving average reacts more significantly to recent price

changes than a simple moving average (SMA), which applies an equal weight to all
observations in the period.

The exponential moving average is also referred to as the exponentially weighted

moving average.

Like all moving averages, this technical indicator is used to produce buy and sell
signals based on crossovers and divergences from the historical average.
Calculation of
MACD
The MACD line is the 12-day
Exponential Moving Average (EMA)
less the 26-day EMA. Closing prices
are used for these moving averages
Reading Of Histogram Chart
 TEAM

Avdesh
Deep Shah
Choudhari
11 12 13 14 15
Attarv Bhavika Devang
Sardesai Jain Jajodia