Create macd.py

indicators/macd.py

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+import pandas as pd
+
+def calculate_macd(prices, fast_length=12, slow_length=26, signal_length=9):
+    """
+    Calculates the Moving Average Convergence Divergence (MACD) along with the Signal line.
+    
+    Parameters:
+    - prices (pd.Series): A pandas Series containing the stock's closing prices.
+    - fast_length (int): The length of the fast EMA. Defaults to 12.
+    - slow_length (int): The length of the slow EMA. Defaults to 26.
+    - signal_length (int): The length of the signal line. Defaults to 9.
+    
+    Returns:
+    - pd.DataFrame: A DataFrame containing the MACD, Signal line, and MACD Histogram.
+    """
+    # Calculate the Fast and Slow EMAs
+    ema_fast = prices.ewm(span=fast_length, adjust=False).mean()
+    ema_slow = prices.ewm(span=slow_length, adjust=False).mean()
+    
+    # Calculate the MACD and Signal line
+    macd = ema_fast - ema_slow
+    signal_line = macd.ewm(span=signal_length, adjust=False).mean()
+    macd_histogram = macd - signal_line
+    
+    macd_df = pd.DataFrame(data={
+        'MACD': macd,
+        'Signal_Line': signal_line,
+        'MACD_Histogram': macd_histogram
+    })
+    
+    return macd_df
+
+if __name__ == "__main__":
+    # Example usage
+    data = {'Close': [22, 24, 23, 25, 26, 28, 27, 29, 30, 32, 31, 33]}
+    prices = pd.Series(data['Close'])
+    
+    # User-defined parameters for MACD
+    fast_length = 12
+    slow_length = 26
+    signal_length = 9
+    
+    # Calculate MACD
+    macd_df = calculate_macd(prices, fast_length, slow_length, signal_length)
+    
+    print(macd_df)