Don, I do use the 12-26-9, but I use the straight macd, and sometimes confirm with the histogram. The histogram does not show when the regular macd goes below the zero line, and that is an integral part of my pattern. The histogram only shows when the macd is below its signal line.
For demonstration sake, look at the highs in DELL on 7/20, 8/27, and 9/29, and then look at the regular macd (not the histogram). The first two dates showed perfect bearish divergence. The second two highs also showed divergence, altho it was not a perfect pattern due to the fact that the macd was slightly higher on 9/29 than on 8/27.
DELL has not made a higher high in price compared to the high on 11/11, and there was that bubble on the macd on 12/9-11. That bubble confuses matters, and as of last nite, the macd is actually higher than that bubble, both on the regular and the histogram. Others might ignore that bubble and just use the two highs. I don't.
If I look at other indicators, the stoch is showing overbought, but the Chaikin is showing sudden accumulation.
So, in a nutshell, don't like the setup for the macd, others are better.
Debra |
