How to Calculate MACD Indicator in Excel

In this Excel tutorial, you learn how to handle MACD in your spreadsheet.

The Moving Average Convergence Divergence (MACD) indicator is a popular technical analysis tool used in stock trading and other financial markets to identify potential buy and sell signals. The MACD is calculated as the difference between two moving averages, the 26-day exponential moving average (EMA) and the 12-day EMA, and is often plotted along with a 9-day EMA of the MACD line, known as the signal line.

Here’s how to calculate the MACD indicator in Microsoft Excel:

  1. Prepare your data: Make sure your data is organized in a clear and consistent manner, with the closing price of the stock in a column.
  2. Calculate the 26-day EMA: To calculate the 26-day EMA, you can use the following formula: =EMA(closing_price, 26). Replace “closing_price” with the range of cells that contain the closing price data.
  3. Calculate the 12-day EMA: To calculate the 12-day EMA, use the following formula: =EMA(closing_price, 12). Replace “closing_price” with the range of cells that contain the closing price data.
  4. Calculate the MACD line: To calculate the MACD line, subtract the 12-day EMA from the 26-day EMA: =26-day EMA – 12-day EMA.
  5. Calculate the signal line: To calculate the signal line, which is the 9-day EMA of the MACD line, use the following formula: =EMA(MACD line, 9).
  6. Plot the MACD: To plot the MACD, you can create a bar chart or a line chart of the MACD line, with the signal line overlaid. You can also add a histogram to represent the difference between the MACD line and the signal line.
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The MACD indicator is used to identify potential buy and sell signals based on the relationship between the MACD line and the signal line.