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Strategies & Market Trends : The Final Frontier - Online Remote Trading

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To: Charger who wrote (5246)9/13/1998 2:05:00 PM
From: TraderAlan  Read Replies (2) of 12617
 
Charger,

There is an excellent links page for technical analysis resources at:

hardrightedge.com

(disclosure..I put it there)

MACD stands for Moving Average Convergence-Divergence. It was created by Gerald Appel many years ago. It has a fast signal line crossing a slower one, giving buy-sell signals.

Dr Alexander Elder popularized a variation of MACD in his book Trading for a Living. It's called MACD Histogram. You buy when the histogram turns up from under -0- for a few bars or when it crosses the zero line. And sell on the reverse.

The idea behind any convergence-divergence study is to compare momentum through 2 or more time frames. If trend is speeding up in the shorter vs. the longer, that's a good indication it will continue to do so after you enter the trade.

Alan
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