Description
The Weekly and Daily MACD is a study developed by Vitaly Apirine for analysis of the Moving Average Convergence/ Divergence (MACD) oscillator using two time frames on a single chart. The technical indicator comprises two MACD lines (daily and weekly), a relative daily MACD (the sum of the daily and the weekly MACDs), and the zero level. By default, the daily MACD plot is hidden; to make it visible, click on the DailyMACD tab of the Plots area and activate the Show plot checkbox. Note: in order to match the daily and the weekly time frames, all the numbers mentioned in this article are selected for usage with an aggregation period of 1 day.
The daily MACD line is calculated as the difference between a 12-day exponential moving average and a 26-day exponential moving average. Given there are five trading days a week, the EMA periods for the weekly MACD are five times longer: 60 days and 130 days, respectively. The relative daily MACD is calculated as the sum of the daily MACD and the weekly MACD and thus tends to have less lag than the weekly MACD.
Potential trading signals may be found at crossovers of the relative daily MACD line with either of the other MACD lines or crossovers of the MACD lines with the zero level. Looking for divergences of the daily, weekly, or relative MACD from the price plot may also prove useful.
Input Parameters
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Parameter |
Description |
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Defines the period of the faster EMA for the weekly MACD calculation. |
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Defines the period of the slower EMA for the weekly MACD calculation. |
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Defines the period of the faster EMA for the daily MACD calculation. |
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Defines the period of the slower EMA for the daily MACD calculation. |
Plots
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Plot |
Description |
|---|---|
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The weekly MACD plot. |
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The daily MACD plot. |
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The sum of the weekly MACD and the daily MACD. |
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The zero level. |
Further Reading
1. "Weekly & Daily MACD" by Vitali Apirine. Technical Analysis of Stocks & Commodities, December 2017.
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.