Experimentalresultsshow thatthepredicted results by useof thealgorithmapproximate well to real ones and are more accurate compared to algorithms based on the exponentialaverage method.
The MACD is calculated by simply subtracting a 26-period exponential moving average (EMA) of the closing prices from a 12-period EMA. The signal line is a nine-period exponential moving average of the MACD.
Downward trending stochastics above 72 suggest the stock is currently overbought, and the stock is threatening to break below the 10-day exponential moving average which it used as support throughout September.