A Data Driven Analysis on the Predictive Accuracy of the MACD

The MACD is a momentum-focused price indicator. It utilizes the exponential moving averages of the last 12 and 26 days’ closing price to predict future trends. After analyzing the historical data of over a thousand companies, I can confidently state that you will make more money doing the opposite of what the MACD technical indicator recommends. At an average accuracy of 49%, equity traders have better odds moving money flipping a coin (pun intended) than using this momentum oscillator.


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