Pandas DataFrame or GroupBy object containing financial data.
required
date_column
str
Name of the column containing date information.
required
close_column
str
Name of the column containing closing price data.
required
fast_period
int
Number of periods for the fast EMA in MACD calculation.
12
slow_period
int
Number of periods for the slow EMA in MACD calculation.
26
signal_period
int
Number of periods for the signal line EMA in MACD calculation.
9
reduce_memory
bool
Whether to reduce memory usage of the data before performing the calculation.
False
engine
str
Computation engine to use (‘pandas’ or ‘polars’).
'pandas'
Returns
Name
Type
Description
pd.DataFrame
DataFrame with MACD line, signal line, and MACD histogram added.
Notes
The MACD (Moving Average Convergence Divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. Developed by Gerald Appel in the late 1970s, the MACD is one of the simplest and most effective momentum indicators available.
MACD Line: The MACD line is the difference between two exponential moving averages (EMAs) of a security’s price, typically the 12-day and 26-day EMAs.
Signal Line: This is usually a 9-day EMA of the MACD line. It acts as a trigger for buy and sell signals.
Histogram: The MACD histogram plots the difference between the MACD line and the signal line. A histogram above zero indicates that the MACD line is above the signal line (bullish), and below zero indicates it is below the signal line (bearish).
Crossovers: The most common MACD signals are when the MACD line crosses above or below the signal line. A crossover above the signal line is a bullish signal, indicating it might be time to buy, and a crossover below the signal line is bearish, suggesting it might be time to sell.
Examples
import pandas as pdimport pytimetk as tkdf = tk.load_dataset("stocks_daily", parse_dates = ['date'])df