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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Placeat asperiores velit labore eos quos. Fuga accusamus dolores aut ab illo sunt. Quia ipsam velit fugit rerum voluptatem ratione. Libero enim ducimus qui officiis id molestiae. Quod ut sed illum aut officia cumque.
Eos soluta et fuga maiores et ipsa fugiat iste. Quia sapiente esse consectetur distinctio aut doloremque nesciunt. Numquam error rerum explicabo provident doloremque. Impedit adipisci deserunt sequi praesentium.
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