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Gold/Mining/Energy : Daytrading Canadian stocks in Realtime

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To: Ellie who wrote (16009)6/7/1999 10:16:00 PM
From: Berry Picker  Read Replies (3) of 62348
 
RE>>quick question...what's up when the price is going up and the
momentum and macd is going down? (volume is on track ) <<

It means the price is not going up as FAST as it was before. Both Momentum and Moving Average Convergence/Divergence work the same number over a different Time period... With Momentum ( MOMt - Pi Pi-n ) Pi-n the "n" on the formula is a variable representing 'intervals ago' while MOMt represents 'momentum for the current period based around a ZERO LINE and Pi represents 'price at the interval' Or to make a lot of math I really don't pay much mind to anyways SEEM MORE SIMPLE If a stock was at 50 cents five minutes ago and "5 minutes is your interval" and now it's 55 cents then you would get a value of 5 cents for that interval But if it was 40 cents the five minutes before that then you get a value for that 'interval' of 10 cents... So it moved only 1/2 as much in the last five minutes as the previous five minute so the momentum is slowing down. It work the same for MACD but that formula is even worse But it work on using two different 'exponentials' on the same price and then comparing to the rest of the sets.

They both TELL YOU something about the price "action" Momentum tells you if the price is CHANGING faster or slower while MACD should help you see when the action swings are turning to reaction swings and then when the reaction swings are returning to action swings,,,, If you like I can type out the formulas for you but its a bit of work if your not likely to STUDY them OUT The main thing is to get used to HOW they work in the real world more than WHY they work in the math work. They are "Indicators" but they work on what has Already Happened in the prices... They just help you to realize that even though the price may be going down still or up still that the "WAY" they are goring up or down "HAS ALREADY CHANGED" I don't know Hope this helps ???? I don't know if this answer would help me any FWIW
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