Ask Colin

Why does the MACD indicator of DVT created on Metastock 7.02 look so different to what you showed in a November 2000 issue of Shares magazine?

The chart of DVT you refer to does not show the MACD indicator, but the ocscillator MACD Histogram (MACD), which is constructed by charting the diference between the standard MACD lines as a histogram. The standard MACD is calculated on the difference between 26 and 12 day exponential moving averages to give the fast MACD line and then smoothing it using a 9 day exponential moving average to give the slow signal line.