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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: TechTrader42 who wrote (10975)	8/21/2000 8:34:14 PM
From: Robert Graham	Read Replies (1) \| Respond to of 12039

The best trades are always when several MACD's are all lined up giving the same signal -- for example, when 5/14/6 and 13/34/89 are both reversing at the same time. Actually this is an example of how momentum is building over time rather than both MACDs giving the same signal. Because you introduced timing when you said that both MACD are reversing "at the same time". In this respect, I agree with the validity of this type of signal. IMO the only way to accurately monitor momentum is through multiple (usually two) MACDs or other type of actual momentum indicator in how they show momentum to be evolving. The information derived from one indicator if properly used can be of some benefit. But I find at two indicators to be more worthwhile. Even when in an intraday time frame, I find two momentum idnicators of value. One demonstrates momentum in a way the other does not, even when compared to the same momentum indicators in other time frames. And the shorter one can demonstrate patterns that are of significance. I also concur on the shortening of the MACD, 5/14/6 for example, working better in the more volatile markets, like the current day SPOO. Bob Graham