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MOVING AVERAGE CROSSOVER (MAC)
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The concept of Moving Average Crossover (MAC) is similar to MACD. The major difference is that MAC utilizes a long time horizon for calculating the difference between two moving averages in different time (i.e. 10-day and 50-day Vs 12-day and 26-day for MACD).
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MAC (10) = 10-day MA - Close Price
MAC (50) = 50-day MA - Close Price
MAC (10-50) = 10-day MA - 50-day MA
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MAC gives a clearer horizontal view of the moving average curves. It also shows whether the different degrees of tension that makes the price move from one extreme to the other extreme. The application of MAC is quite similar to MACD. For more details, please also see the MACD.
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