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Strategies & Market Trends : Befriend the Trend Trading -- Ignore unavailable to you. Want to Upgrade?

To: Ken Adams who wrote (2496)	12/29/1998 11:06:00 PM
From: Charles Kalb	Respond to of 39683

Ken........Thanks for comments on Elder's 5/34 MACD. The classic MACD is a 12/26 and is often the default in TA textbooks and programs, but you are correct in stating that many combinations of the moving averages give similar results. I think the distinguishing feature of Elder's MACD is the use of the relatively short-term 5-period EMA. This should make it respond a bit more quickly. I plotted both the Elder's and classic forms of the MACD this evening and eyeballed a few charts. It appears that Elder's MACD will tend to get one into and out of positions a day or two earlier in many instances. This is fine because I've always thought the classic MACD was a bit sluggish. I, like you, only use MACD as a supporting indicator, but I think I'll put Elder's on my template. Charles