# MACD Signal Line calculation



## Beams (25 November 2010)

Hi,

The signal line (9 days) is the 9 day EMA of MACD

How do work out the EMA of a MACD when EMA involves closing price, and MACD does not? (Formula is from shockcharts.com)

I found Signal Line = MACD * Multiplier + SMA[of 9 days] * (1-Multiplier), is this correct?

I m just starting out and trying to get my head about some of the calculations, I understand there not elemental, I would like to understand how they work before I rely on them.


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## tech/a (26 November 2010)

You can calculate an exponential moving average of any data set it doesn't need to be close.
MACD is simply the Convergence / Divergence of any 2 M/A's and the Trigger line is an M/A of that---the Moving average Divergence / Convergence.

As for relying on it as a signal all it is is another average expression it tells you how data has represented it self of the past X periods.Tells very little about how its going to perform going forward.
Like all indicators used in isolation is no better than a 50/50 punt.


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## Beams (26 November 2010)

Cheers,

Turns out I had a different EMA equation (which produced the same results). Got it now


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