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Strategies & Market Trends : Ask Vendit Off-Topic Questions

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To: Venditâ„¢ who wrote (2750)12/21/2004 1:28:14 AM
From: Walkingshadow  Read Replies (1) of 8752
 
Hi Reid,

Very nice chart.

But you did not point out that MACD also works pretty much as effectively on the short side.

It would be interesting to compare the theoretical gains from long-side buy signals vs. go long/go short signals in this particular case. I bet the latter would be considerably greater. (if I could find a bit of time I would calculate this myself!)

I also see a borderline MACD buy signal towards the end of March.

And there is an interesting divergence between MACD and price action from the beginning of March to mid-April. I probably would have called this a bullish divergence at the time, and considered that it represented a buy signal. But that would not have worked out well, unless you had enough huevos to hold through a rather horrendous drawdown.

T
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