David -
I watch stocks with MACD indicators. I buy based on the weekly indicators. Once I'm in, I look at weekly and daily indicators...
If you look at weekly and daily charts, and look at the 3 main MACD lines, you have 6 lines in all (or 4 lines and 2 histograms, however you graph them). They are (from fastest to slowest):
Daily MACD Histogram
Daily MACD Diff
Daily MACD MA
Weekly MACD Histogram
Weekly MACD Diff
Weekly MACD MA
I'll get a signal first with the Daily MACD Histogram, then the Daily MACD Diff, then... and so on...
If I sell based on the first line turning down, I'll be sure that I don't lose much on the way down before getting out. But I run a great risk of getting out too soon... before I give the stock a chance to really show it's developing weakness. If I wait until the last one turns down, I'll be very sure I should sell, but I'll often give up a lot of money. So I strike a cautious balance on a sell. I'm looking for the fastest 2-3 to turn down.
So far, with my indicators, only the fastest line has turned down. Seems a little early to sell ZOLT.
However, maybe in 1-2 trading days, if things don't turn around!
Loren |
