MACD

Concept

The MACD compares two exponential moving averages (fast and slow) and smooths the difference with a signal line. It measures momentum and detects when it shifts direction.

Idea

A buy signal occurs when the MACD line crosses above the signal line with sufficient negative divergence. A sell signal occurs when the MACD crosses below with positive divergence.

Genetic Algorithm Parameters

• Fast EMA period
• Slow EMA period
• Signal line period
• Minimum divergence from the zero line

Best suited for

Ideal for momentum shifts and trend reversals

Less effective in flat sideways conditions