The signal line is the 9-period EMA of the MACD line. Traders sometimes overlook the need for the signal line to be calculated using the same EMA formula as the MACD line. However, if you don't do ...

Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of ...

While the MACD relies on moving averages, stochastic indicators use a formula based upon current stock prices along with their highest high prices and lowest low prices in the recent past.