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Strategies & Market Trends : StockCharts.com

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To: Cush who wrote (436)7/29/2002 11:47:04 AM
From: bob wallace  Read Replies (2) of 836
 
Cush

the problem is readily recreated.

take NDX and do a huge daily chart with only MACD as the upper indicator (there is also, in both cases a lower Wialliams %R if that makes a difference) you will see for Friday an up tick in the MACD histogram, meaning that Fridays histogram bar is shorter than Thursday's bar (signifying a reversal in the MACD historgram)

run the same chart, but add an rsi upper (above) indicator
and the MACD looses its definition and Thursday's and Friday's histogramn bars appear to the eye to be the same size, thus you could not VISUALLY detect a turn in the histogram

I do not like to have to worry about what indicators I have active to get a "correct" visual read on a chart; otherwise, what is the point of the chart?

BOb
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