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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade -- Ignore unavailable to you. Want to Upgrade?

To: SpongeBrain who wrote (1748)	1/3/1999 3:41:00 AM
From: Dale Baker	Read Replies (2) \| Respond to of 2120

Thanks, Ken, I will spend some time at that site today. I am reviewing stocks for my Monday watch list and wonder if you look for stocks which had greater than average volume the preceding trading session, or does it matter? ------------------------------------------------------------------- There are much more expert sources here on SI or on the Web, I am sure. But the basic rules for MACD are: --The Histogram is the vertical lines going up or down from the center line. They tend to run in streaks and get larger or smaller. When they go up and get longer, the share price should be headed up. Converse happens when they go down. --There are two lines, red and blue. The red line is the "fast" line, the blue a bit slower. You are looking for events where the red crosses the blue and indicates a shift in momentum. Red crossing blue going upward when both are below the center line seems to be more powerful as a buy signal, while red crossing blue going down when both are in the top half is more powerful as a sell signal. Any time the red crosses the blue going up it can be a buy, and a cross going down can be a sell. The ideal is a red line crossing the blue in the bottom half just as the histogram is getting ready to move from downward bars to upward bars. You may want to wait until the lines have crossed and the histogram is positive before you buy, just to be sure. MACD is not as good as stochastics for day to day predictions. For examples, look at any big tech stock which recovered from early October. Pattern should be very clear. I used MACD to buy breakouts in UIS and SE at 20 and 24 respectively. OK, now let's have some real TA experts tell me what I got wrong. That's how I have been using MACD for the last year or so.