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Engineering using Spreadsheets

Technical Analysis of Stocks: How it works

Description
How it works



This tool uses scrollable charts. Creating scrollable charts is straightforward, an OFFSET formula is used to specify an area to be plotted, and this data is passed to the chart. In this tool, Named Formulae are used to identify data to be plotted. When the user uses the scrollbar, the range returned by the offset formula changes, causing the plots to change.

The candlestick plot is created using the "Stock" chart type in Excel. This type seems to have been built very specifically for stock data and is seldom used for analysing other kinds of data.

The MACD calculations consists of moving averages and lag filters, an excellent discussion of these and the interpretation of the MACD plots is available at this Stockcharts.com page. This site also discusses more metrics for technical stock data analysis.