# Calculate MACD in R

The Moving Average Convergence Divergence (MACD) is a popular technical indicator used by traders to identify trends in stock prices. The MACD consists of two lines – the MACD line and the signal line. The MACD line is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. The signal line is a 9-day EMA of the MACD line. Calculate MACD in R is an extension from one of an earlier post, MACD in Excel. By using R Programming, the same output as 273 lines of VBA code can be achieved within 20 lines.

To calculate MACD with signal line and histogram in R, we can use the `TTR` package. Here’s how to install and load the package:

To pull the last 90 days of closing prices for TSLA stock, we can use the `quantmod` package. Here’s how to install and load the package, and pull the data:

Now that we have the closing prices for TSLA, we can calculate the MACD with signal line and histogram using the `MACD` function from the `TTR` package:

The `MACD` function returns a list with three elements: `macd` (the MACD line), `signal` (the signal line), and `hist` (the histogram). To account for missing values, it’s possible to initialize the histogram with zeros. This can be achieved by first identifying the missing values in the macd\$hist object using the is.na() function. We can plot MACD and signal lines, and the histogram using the `plot` function:

Here’s the complete code:

That’s it! Now you know how to calculate MACD with signal line and histogram in R!

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