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Strategies & Market Trends : Ahh Canada - 2 out of 3 ain't bad

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To: Davy Crockett who wrote (1823)4/4/2001 12:43:59 AM
From: Tom McIlwain  Read Replies (1) of 5144
 
Svenlar & Cush: MACD scan mystery solved

Remember that the MACD crossovers I was getting on the scans did not always seem to quite jive with the crossovers that were showing up on the Sharpcharts. After an evening of playing around, pondering and reading the MACD tutorial at the following site over and over:

stockcharts.com

I have finally come to the realization that the Chartsmart filter is not filtering for the crossover of the MACD with it's own 9 day EMA, but rather it is simply selecting the crossover of the fast and slow EMAs used for the MACD. This would conform to what is referred to in the above tutorial as the ZERO LINE CROSSOVER, rather than the MACD MOVING AVERAGE CROSSOVER.

Quite misleading on the part of Chartsmart if you ask me, although I see now that their description of the thing does describe it as simply the moving average crossovers.

Well, at least I understand MACD a lot better now!

Tom
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