Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Gemstar Intl (GMST) -- Ignore unavailable to you. Want to Upgrade?

To: Jeff Bond who wrote (2899)	4/28/2000 2:46:00 AM
From: kumar	Read Replies (2) \| Respond to of 6516

umm excuse me - if one was planning to hold stock in a company for (lets assume) 5-10 years, how relevant is this "MACD gobbldygook stuff" ? curious. cheers, kumar

To: Jeff Bond who wrote (2899)	4/28/2000 6:29:00 AM
From: Ausdauer	Read Replies (2) \| Respond to of 6516

The MACD Hey, JB "Moving Average Convergence Divergence" I'm glad I know what it means now. I thought it was some code language for MacDonalds. When your stomach gets all churned up from the volatility the MACD indicates you should get a burger and a shake and kick back for a while. Does crossing the MACD guarantee the consummation of the deal with TV Guide, too? Aus

To: Jeff Bond who wrote (2899)	4/28/2000 11:54:00 AM
From: Apollo	Read Replies (2) \| Respond to of 6516

The MACD When the indicator line bottoms, comes back and passes UP through the indicator line, that is referred to as a MACD Crossover. Thie event is WIDELY used to "anticipate" momentum swings. I initiated a discussion a couple months ago on the G&K thread related to the utility of the MACD. My initial look at this metric, together with the commentary I received from investors on that thread, was that the MACD does not predict an upward move. Instead, the MACD crosses over AFTER the upward move has been initiated. Looking at Unclewest's reference........ tscn.com one can see that the MACD crossed over 4 x over the price of $72/share, just prior to the price collapse of this past month. Purchasing there, despite the encouragement of a MACD crossover, would have left the shortterm player in deep do-do this month. OTOH, if one happens to be LTB&H, the MACD is not that helpful. Bottom line, I'm not convinced it is predictive or helpful. I am convinced that the MACD won't crossover until the share price has already gone up. Which means a short-term purchase at that point is a bet that the share price will continue to go up. Again, looking at the graph from above, that doesn't consistently happen. Other opinions??? Stan