## What will we cover?

In this tutorial we will calculate and visualize the **MACD** for a stock price.

## Step 1: Retrieve stock prices into a DataFrame (Pandas)

Let’s get started. You can get the CSV file from here or get your own from **Yahoo! Finance**.

```
import pandas as pd
import matplotlib.pyplot as plt
%matplotlib notebook
data = pd.read_csv("AAPL.csv", index_col=0, parse_dates=True)
```

## Step 2: Calculate the MACD indicator with Pandas DataFrame

First we want to calcite the **MACD**.

The calculation (12-26-9 MACD (default)) is defined as follows.

- MACD=12-Period EMA − 26-Period EMA
- Singal line 9-Perioed EMA of MACD

Where EMA is the Exponential Moving Average we learned about in the last lesson.

```
exp1 = data['Close'].ewm(span=12, adjust=False).mean()exp2 = data['Close'].ewm(span=26, adjust=False).mean()data['MACD'] = exp1 - exp2data['Signal line'] = data['MACD'].ewm(span=9, adjust=False).mean()
```

Now that was simple, right?

## Step 3: Visualize the MACD with matplotlib

To visualize it you can use the following with **Matplotlib**.

```
fig, ax = plt.subplots()
data[['MACD', 'Signal line']].plot(ax=ax)
data['Close'].plot(ax=ax, alpha=0.25, secondary_y=True)
```

Resulting in an output similar to this one.

## Want to learn more?

This is part of the course of Master Technical Analysis with pandas.

In the next lesson you will learn how to calculate Stochastic Oscillator with Pandas DataFrames.

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