I did a lot of this at my last internship, theres a bunch of ways to read it; but what my boss found "optimal" was when you have divergences between the MACD and the price action...
i.e. the lows on the MACD are increasing where the lows on the price are decreasing
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I did a lot of this at my last internship, theres a bunch of ways to read it; but what my boss found "optimal" was when you have divergences between the MACD and the price action... i.e. the lows on the MACD are increasing where the lows on the price are decreasing
the "divergences" section of this site
http://stockcharts.com/school/doku.php?id=chart_school:technical_indica…
does a pretty good job of illustrating it
and a downside of just using the crossovers as buy/sell signal is that you usually get a lot of false positives/noise
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