MACD SE

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Definition

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. MACD can be used to identify aspects of a security's overall trend. The MACD will be over zero when the two exponential averages are bullish and under zero when the two exponential averages are bearish.

The MACD SE signal generates a sell order for the open of the next bar when the MACD crosses below the exponential average of the MACD. The MACD SE generates short entry orders only. Use MACD LE for long entries.

Commission or slippage are not taken into account for strategy calculation.

Default Inputs

FastLength sets the number of bars used to calculate the fast exponential average, 12 by default.

SlowLength sets the number of bars used to calculate the slow exponential average, 26 by default.

MACDLength sets the number of bars used to calculate the MACD exponential average, 9 by default.