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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: browser who wrote (8711)	9/28/1998 9:15:00 PM
From: Nazbuster	Read Replies (1) \| Respond to of 12039

Browser, As I understand it, MACD is a measure of the difference between two moving averages, with the difference itself then taken as a moving average. You'd expect the shorter period (8 days, hours, minutes...) to zig-zag faster than the longer period (17) since the shorter period won't have all the history to drag the average down when the stock moves. By taking the moving average (9 periods) of the difference, you "smooth" the difference measurement. MACD is a nice way to see if the trending is changing.