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

To: Robert Rose who wrote (2461)	12/21/1998 12:30:00 PM
From: Debra Orlow	Respond to of 99985

So what you are saying is that because the 12-day EMA is rising faster than the 26-day EMA, the stock is in for a short-term correction? If so, by how much, would you expect? Yes, when the macd is rising, this is exactly what is happening, but that by itself is actually bullish. What I do watch for is the stoch to signal turning points, because the macd is a lagging indicator with respect to short-term trading. And I do not just watch one cycle of the macd, I watch for the second cycle to be lower than the first, while the price of the stock goes higher than the price on the first cycle of the macd. My signals do not tell me anything about the magnitude of a move, only the direction. You must look to other things for the magnitude, such as support/resistance, p&f counts, Edwards & Magee measuring formulas, trendlines, stoch reversals, etc. Please check out these for further explanations: Message 6689068 Message 6752770 (last para) Message 6861254 BTW, with the action in EBAY today, the evening star has been negated as well as my stoploss signal. It is hard to be convinced of my signals on a chart that has no history. EBAY is only ~60 days old. And I do not pay attention to FA most times. I believe that all numbers can be skewed (dare I say manipulated?) to someone's advantage. The only number that I sometimes pay attention to is the revenues. You can hide earnings alot easier than you can hide revenues. But still, the TA must say so, either way. Debra