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Strategies & Market Trends : Technical Analysis - Beginners

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To: TA2K who wrote (10268)5/14/1999 1:23:00 AM
From: Lawrence Burg   of 12039
 
As an experienced trader looking for short-term gains (~5 days), before taking a long position in stock XYZ I would absolutely and without exception check on the MACD(9) indicator, to make certain that a) it was displaying an upward crossover, b) crossing upward through 0, c) was making a new 6 month high; Ex: my latest greatest...MAV. Shorter term, more violent explosions can be seen also (BDE in late March), however the MACD is not geared to rapid reaction;i.e., your 5 days. It's beauty, for me, lies in it's short to mid-term ability to predict behavioral changes. Its reaction is long enough to filter out a portion of any orchestrated manipulation, yet short enough to realize building optimism due to underlying fundamental changes. I am using the MACD(9) along w/some ADs to detect building momentum."
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