How To Calculate Moving Average Convergence Divergence (MACD) using R?

by winifred.greenfelder , in category: Technical Analysis , 2 months ago

How To Calculate Moving Average Convergence Divergence (MACD) using R?

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1 answer

by sherman.carter , 2 months ago

@winifred.greenfelder 

To calculate Moving Average Convergence Divergence (MACD) using R, you can use the following steps:


Step 1: Load the necessary libraries

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library(TTR)


Step 2: Load the data you want to analyze Assuming you have the stock price data stored in a data frame called "stock_data" with a column named "Close" containing the closing prices.


Step 3: Calculate the Exponential Moving Averages (EMA)

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stock_data$ema12 <- EMA(stock_data$Close, 12)
stock_data$ema26 <- EMA(stock_data$Close, 26)


Step 4: Calculate the MACD line

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stock_data$macd <- stock_data$ema12 - stock_data$ema26


Step 5: Calculate the Signal line

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stock_data$signal <- EMA(stock_data$macd, 9)


Step 6: Calculate the MACD histogram

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stock_data$macd_histogram <- stock_data$macd - stock_data$signal


Step 7: Plot the MACD line, Signal line, and MACD histogram

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plot(stock_data$macd, type = "l", col = "blue", xlab = "Date", ylab = "MACD")
lines(stock_data$signal, col = "red")
barplot(stock_data$macd_histogram, col = ifelse(stock_data$macd_histogram > 0, "green", "red"), ylab = "MACD Histogram")


This will calculate the MACD, Signal line, and MACD histogram for the given data and plot them on a chart. You can further customize the chart based on your requirements.