Description
The MACD strategy is based upon difference between values of Moving Average Convergence/Divergence (MACD) indicator and its moving average. The MACD, in turn, is defined as the difference between fast and slow moving averages of Close price: the length of the fast moving average is significantly less than that of the slow one (12 vs. 26 by default). The strategy adds a simulated Buy order when the difference between MACD and its signal line crosses above the zero level and a simulated Sell order when it crosses below.
Input Parameters
| Parameter | Description |
|---|---|
fast length
|
The number of bars used in calculation of MACD's fast average. |
slow length
|
The number of bars used in calculation of MACD's slow average. |
macd length
|
The number of bars used in calculation of the moving average of MACD. |
average type
|
The type of moving average to be used in calculations: simple, exponential, weighted, Wilder's, or Hull. |