2 Comments
 

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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