Can I screen the market for MACD?

Yes, MACD is one of the key flags in our ChartSignals package. You can screen for bullish and bearish Signal Line and Zero Line crossovers. Developed by Gerald Appel (publisher of Systems and Forecasts) in the late seventies, the "Moving Average Convergence-Divergence (MACD) indicator" is one of the most commonly used momentum indicators around. It is used to spot changes in the strength, direction, momentum, and duration of a trend in a stock's price.

How do you calculate MACD?

The MACD is the difference between a 26-day and 12-day exponential moving average of closing prices (an exponential moving average or EMA is one where more weight is given to the latest data). A 9-day EMA, called the "signal" (or "trigger") line is plotted on top of the MACD to show buy/sell opportunities. A Signal Line Crossover when the "slow line" of the MACD rises above/below the faster 9-Day EMA line. A Centre Line Crossover is when the MACD line goes above/below zero.

We discuss the MACD and its interpretation in much more detail here.