MACD is the difference between a short term moving average and a long term moving average, MACD

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MACD is the difference between a short term moving average and a long term moving average, MACD = maShort − maLong. Typically the short term average is 12 days and the long term is 26 days. When the short term exceeds the long term by the certain amount, the “overbought-oversold limit,” then it is maintained that the stock is overbought and it is predicted that the stock price will fall. Conversely when the short term is less than the long term by more than the overbought-oversold limit, then the stock is oversold and the price is predicted to rise. Write a program to test this hypothesis.

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Finance With Monte Carlo

ISBN: 9781461485100

2013th Edition

Authors: Ronald W. Shonkwiler

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