How To Compute Moving Average Convergence Divergence (MACD) in Swift?

by hal.littel , in category: Third Party Scripts , a month ago

How To Compute Moving Average Convergence Divergence (MACD) in Swift?

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1 answer

Member

by adan , a month ago

@hal.littel 

To compute Moving Average Convergence Divergence (MACD) in Swift, you can follow these steps:


Step 1: Calculate the Short-term Exponential Moving Average (EMA) by taking the average of the closing prices over a specified period (e.g., 12 periods).

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func calculateEMA(data: [Double], period: Int) -> [Double] {
    var emaValues = [Double]()
    
    for i in 0..<data.count {
        if i < period - 1 {
            emaValues.append(0)
        } else if i == period - 1 {
            let ema = data[0...i].reduce(0, +) / Double(period)
            emaValues.append(ema)
        } else {
            let ema = (data[i] * 2 / Double(period + 1)) + (emaValues[i - 1] * (1 - (2 / Double(period + 1)))
            emaValues.append(ema)
        }
    }
    
    return emaValues
}


Step 2: Calculate the Long-term EMA using the same method as above but with a longer period (e.g., 26 periods).

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let shortTermEMA = calculateEMA(data: closingPrices, period: 12)
let longTermEMA = calculateEMA(data: closingPrices, period: 26)


Step 3: Calculate the MACD line by subtracting the Long-term EMA from the Short-term EMA.

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var macdLine = [Double]()
for i in 0..<data.count {
    let macd = shortTermEMA[i] - longTermEMA[i]
    macdLine.append(macd)
}


Step 4: Calculate the Signal line by taking the 9-period EMA of the MACD line.

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let signalLine = calculateEMA(data: macdLine, period: 9)


Step 5: Calculate the MACD histogram by subtracting the Signal line from the MACD line.

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var macdHistogram = [Double]()
for i in 0..<data.count {
    let histogram = macdLine[i] - signalLine[i]
    macdHistogram.append(histogram)
}


Now you have computed the MACD line, Signal line, and MACD histogram, which are the key components of the Moving Average Convergence Divergence (MACD) indicator in Swift. You can use these values to analyze trends and make trading decisions in financial markets.