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Strategies & Market Trends : CHARTS AND TA, A UNIQUE APPROACH -- Ignore unavailable to you. Want to Upgrade?

To: flickerful who wrote (1251)	11/19/1997 8:53:00 AM
From: stan s.	Respond to of 1391

AMAT, CYMI...MACD signals.................. flickerful, Amat has dropped from the 50's to the 30's in short order. I don't follow them but I would very careful. The chart does not inspire confidence in the quarter. Do they always preannounce if earnings are off? I agree some positive factors are showing....but if the news is good after close and the 200 day MA is crossed etc...the trend will change and an entry will be evident, it has a lot of recovery room. On the other hand if you have strong reason to assume good news...then go for it...in lieu of that I would hold off. I'm in the midst of plotting CYMI with the MACD....this indicator is generally not a day trade indicator. Because of it's safer and slightly lagging nature the day or two after the signal are often flat...the very short term move having already occurred...signaled by the shorter more volatile momentum indicators. It can be and is a great mid term indicator...I'll show it on the upcoming chart. Short term, moderate news can have an extreme effect on indicators such as CCI, Stochastics, Williams%R etc...less on the RSI and much less on the MACD. Later, Stan

To: flickerful who wrote (1251)	11/19/1997 9:29:00 AM
From: stan s.	Read Replies (1) \| Respond to of 1391

CYMI and the MACD. This chart shows why the MACD is such a relaxing indicator. geocities.com With the exception of some whipsaw action in August it has only given 7 total signals of the cross of it's own dotted line. (the trigger line at 0 can be used as well but not for this discussion) The vertical lines show the signals. Green indicates a buy, red..a sell. Note the action of the security until the reverse signal occurs, it's been very accurate mid term...that's why I mention MACD's so often. You can often "beat" these signals with the help of other indicators. One that often lags the more erratic momentum indicators but can lead the MACD is a simple cross of the 21 day MA by the 10 day MA. That has not yet happened in CYMI's case...you might be able to see them in the lower right hand corner. The dark yellow(10) is close to crossing the dark blue (21). In the case of a downtrodden stock like CYMI... you might want to wait for a little more confirmation...mid term...short term..a little different story. Gotta go..market's opening. Stan