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Strategies & Market Trends : Galapagos Islands

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To: Challo Jeregy who wrote (8053)10/19/2002 3:50:51 AM
From: bramble88  Read Replies (2) of 57110
 
Here's a MACD reference:

stockcharts.com

Reiterates positive/negative divergence as I've already described; also discusses MACD moving average crossover and centerline crossover as additional (lesser) signals.

It makes some sense that the PPO (Price Percentage Oscillator) could be used as described in Investorhub post you referenced, if thought of like this: The big downward spikes are extreme momentum and as such indicate selling panic and some measure of capitulation; such an event would indeed lead to a more sustained rally. He points out that this works best, or only, on a longer time scale (ie. daily or weekly charts), which makes sense as crisis selling and buying are not everyday events.
I think it can be very useful in that context.

I also think that on a daily trading basis, using 60, 15 and 5min charts, MACD and perhaps even PPO is best used as we have been doing it, by looking for divergences, perhaps in occassional combination with MACD crossover signals, and certainly with other indicators.
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