26dma

How to Calculate Daily moving averages

The 26 day moving is calculated by summing up the last 26 days prices and dividing them by 26 i.e >=Average(B1:B26). On day 27th , the day1 price is excluded and day27 price is included i.e >=AVERAGE(B2:B27). Similarly, latest prices are

 included and the earliest are excluded.

To calculate the 12 day moving average (DMA), the first 12 days prices are summed up and divided by 12. In MS excel, you would use =Average (B1:B12) to calculate the first 12 days average. On day 13th, day1 price is excluded and day 13

 price is included.

On day 39, the moving average of 24.4 represents the daily average for day14 to day39, i.e =Average (B14:B39). And the 12 day moving average at day39 is equal to 25.03 and represent average price of day28 to day39.

MACD at day 39 is equal = 12 day moving average – 26 day moving average

                                                  = 25.03 – 24.4

                                                 = +.63

The value shows uptrend and generates buy signal