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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: HighTech who wrote (950)	12/8/1998 5:49:00 PM
From: SE	Read Replies (2) \| Respond to of 99985

Maybe I can assist. This is from memory, but the chart shows a high around 11 am or so. It then shows a second high at least equal to the first, maybe higher. However, note the MACD at those two points....it is high the first time and lower the second. You can see the stock tanked 2 points after that. Beautiful play.... A divergence is when the price sets a higher high and the indicator sets a lower low. Or price a lower low and the indicator a higher high. Hope that helps. -Scott EDIT - Just checked the chart and from the morning high, it is actually a triple divergence....prices go up, indicator coming down.

To: HighTech who wrote (950)	12/8/1998 5:57:00 PM
From: Debra Orlow	Read Replies (2) \| Respond to of 99985

HiTech, what I wanted to show was the action this morning, when the price made two new highs, but the macd was lower on the second high. I went short on the second high, covered when I saw some demand come in. I only play these for short-term drops, unless the 5-minute chart is confirming the daily. At the close, it might be a buy signal. I only play divergences, much more powerful, and it is not showing a bullish divergence right now. Debra