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

To: Robert Graham who wrote (10978)	8/22/2000 9:06:46 AM
From: TechTrader42	Read Replies (1) \| Respond to of 12039

Actually this is an example of how momentum is building over time rather than both MACDs giving the same signal. Bob: Nicely put. You can trade, of course, based on a signal from the daily 5/14/6 even when the daily 13/34/89 is still overbought. Or, using intraday charts, you could trade 5/14/6 in the 5-min. chart when the 30-min. 5/14/6 is overbought. However, you have to be aware of the time frame in which you're trading and get out in time. The danger is, though, when the signals aren't aligned in two or more time frames, that you can get whipsawed. You'll often get a short-lived bounce at the signal, followed quickly by a resumption of the longer-term trend. When the signals are all in synch, it's more likely that the bounce will be stronger -- and longer lasting. Brooke