Hindawi Mathematical Problems in Engineering Volume 2018, Article ID 9280590, 12 pages https://doi.org/10.1155/2018/9280590 Research Article Predicting Stock Price Trend Using MACD Optimized by Historical Volatility Jian Wang and Junseok Kim Department of Mathematics, Korea University, Seoul , Republic of Korea Correspondence should be addressed to Junseok Kim;
[email protected] Received 18 September 2018; Revised 13 November 2018; Accepted 21 November 2018; Published 25 December 2018 Academic Editor: Luis Mart´ınez Copyright © 2018 Jian Wang and Junseok Kim. Tis is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. With the rapid development of the fnancial market, many professional traders use technical indicators to analyze the stock market. As one of these technical indicators, moving average convergence divergence (MACD) is widely applied by many investors. MACD is a momentum indicator derived from the exponential moving average (EMA) or exponentially weighted moving average (EWMA), which reacts more signifcantly to recent price changes than the simple moving average (SMA). Traders fnd the analysis of 12- and 26-day EMA very useful and insightful for determining buy-and-sell points. Te purpose of this study is to develop an efective method for predicting the stock price trend. Typically, the traditional EMA is calculated using a fxed weight; however, in this study, we use a changing weight based on the historical volatility. We denote the historical volatility index as HVIX and the new MACD as MACD-HVIX. We test the stability of MACD-HVIX and compare it with that of MACD.