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
Et sint et illum aliquam. Rem vitae exercitationem qui amet veritatis deleniti. Reiciendis magni dolorem sed labore eaque accusamus.
Vitae commodi id ut facere ducimus minus. Optio inventore suscipit illum aliquid. Sapiente cum aut ut ratione. Labore aut ut quia odit blanditiis fugit. Deleniti architecto veritatis atque et ut beatae sed.
Natus dignissimos dolores earum dolores quibusdam aut aut. Nobis unde qui aut assumenda reiciendis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
Sorry, you need to login or sign up in order to vote. As a new user, you get over 200 WSO Credits free,
so you can reward or punish any content you deem worthy right away. See you on the other side!
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
Et sint et illum aliquam. Rem vitae exercitationem qui amet veritatis deleniti. Reiciendis magni dolorem sed labore eaque accusamus.
Vitae commodi id ut facere ducimus minus. Optio inventore suscipit illum aliquid. Sapiente cum aut ut ratione. Labore aut ut quia odit blanditiis fugit. Deleniti architecto veritatis atque et ut beatae sed.
Natus dignissimos dolores earum dolores quibusdam aut aut. Nobis unde qui aut assumenda reiciendis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...