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

To: Compadre who wrote (2077)	12/16/1998 1:19:00 PM
From: Debra Orlow	Read Replies (3) \| Respond to of 99985

Jaime, MACD divergence is defined as the following Bearish price - shows 2 distinct tops, the 2nd being higher than the first macd - shows 2 distinct tops, the 2nd being lower than the first Bullish price - shows 2 distinct bottoms, the 2nd lower than the 1st macd - shows 2 distinct bottoms, the 2nd higher than the first Now comes where 2 technicians might differ as to how they read divergence. My understanding is that there cannot be any significant movement of the macd on the other side of the zero line between the 2 peaks or troughs, as this will negate the divergence. What you see on the ndx is a whole lot of movement on the top side of the zero line in between, thus negating the divergence for me. I also look for bearish divergences only when the macd is above zero, bullish when below. Others might use the zero line differently. I also look at the range to determine what I am waiting for. Since we are at the top of this range on the ndx ~ 1652 area, I am looking for bearish divergences to form. But that is me. If you can get some other pattern to work for you, go for it. I just don't see it here. I hope this explains..... Debra