Page 48 - FINAL CFA I SLIDES JUNE 2019 DAY 4
P. 48
LOS 13.e: Describe common technical analysis Session Unit 3:
indicators (price-based, momentum oscillators,
sentiment, and flow of funds)., p. 323 13. Technical Analysis
Moving average convergence/divergence, MACD, are drawn using exponentially smoothed moving
averages, placing greater weight on more recent observations.
“MACD line” = difference between two exponentially smoothed moving averages;
“Signal line” = exponentially smoothed moving average of the MACD line.
Buy hen MACD Line (Blue) breaks above > Signal line (Red); otherwise, sell!
