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

To: Jimm2 who wrote (2649)	1/16/1999 5:13:00 PM
From: Bert Zed	Read Replies (1) \| Respond to of 39683

TC, What do you think of MUCP. Wait a little longer before buying more ? timely.com bert

To: Jimm2 who wrote (2649)	1/17/1999 1:52:00 PM
From: Dr. Stoxx	Read Replies (1) \| Respond to of 39683

Jimm, To answer your questions: Yes, I am a big fan of the MACD indicator. It was part of the original BTTT system, but was later abandoned in favor of trendlines and MA to determine trend. That was mainly because I couldn't find a free site I liked that gave variable MACD. But I have since found one (ASK research), and so have reincorporated it. But as you probably know, MACD is a reactionary indicator. It only reacts to what the price has already done, whereas Stochastics, and others like OBV (which I also use), RSI, Money Flow, Williams, ROC, ADX, Elder Ray, and Bollingers are more predictive indicators. Their shape indicates what the stock oughtto be doing, based on what the price has just done. Therefore, you are right, it is essential to conjoin some kind of reactionary signal with one or more predictors. My most used combination is MACD and Stochastics, but when in doubt I turn to OBV and the others as well. The key is divergence: higher price lows + lower indicator lows (very bullish for the near term...a reversal in the correction is in progress) or lower price highs and higher indicator highs (very bearish...a reversal in the present upswing is in progress). AMR is an interesting chart. So much going on. Longer term, the stock is moving sideways in a wide trading range (50-70) after a sharp decline. Recent action looks to me like it is trying to break out of this range. What worries me about it is the two most recent lows are at the same level of support (non-trending sign), the Stoch low is higher than the last low, and the recent upswings, save the last one, are progressively less steep. But my best guess is that it will head up to retest the near-term high. TC.