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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?


To: blind-geezer who wrote (5475)2/27/2005 5:44:31 PM
From: Venditâ„¢  Read Replies (1) | Respond to of 8752
 
MACD is strictly a momentum indicator and not really used to enter or exit a stock. It is also a trending indicator.

The zero neutral line is not used as part of the trigger but rather used as an anchor of the histogram. Think of it as the place where all of the histogram bards are glued. The further away from that line the histogram bars are stretched, the harder the momentum will be coming back when the longer term trend changes directions.

The main thing to remember is that MACD is only a secondary indicator.

This chart should explain my above statements on MACD:

themarketwind.com

Feel free to ask questions.

Reid