Free Moving Average Convergence Divergence, MACD Stock Scan 29 September 2014

5 October 2014

What you trade is critical. Profit and risk are the two sides of the same coin. It decides whether you are going to profit or lost. Besides that you can’t trade every single stock in a particular market like Singapore Stocks in Singapore Stock Exchange, SGX. You would probably have to keep it to less than ten stocks or may be twenty.

You would probably like to identify those stocks like to move in the near future.

Moving Average Convergence Divergence, MACD oscillator, is a trend following momentum indicator that shows the relationship of two moving averages of prices action; the MACD line and signal line.

Three trading strategies:

1. Trade the Breakout
2. Trade the Trend
3. Trading Tops and Bottoms

Four entry methods:

1. Crossovers – Sell Strategy, MACD crosses below the signal line. Buy Strategy, MACD rallies above the signal line. It is advisable to wait for confirmation to reduce possible whipsaw.
2. Divergence – The security price action diverges from the MACD. It signals the end of the current trend.
3. Cross Zero Line – MACD moves above or below zero line. Upward trend: Cross above zero line, short MA above long MA. Downward trend: Cross below zero line, short MA below long MA.
4. Dramatic rise or fall – MACD rises or decline dramatically – when the shorter moving average pulls away from the longer-term moving average – Oversold or Overbought.

29 September 2014, Monday Singapore Stocks Scan for Stocks closed greater than fifty (50) cents

1. Stock closed more than fifty (50) cents and volume traded greater 500K
2. MACD line crosses above MACD signal – Bullish trend
3. MACD line crosses above zero line – Bullish trend
4. MACD Histogram +ve Divergence – Bullish trend
5. MACD line crosses below MACD signal – Bearish trend
6. MACD line crosses below zero line – Bearish trend
7. MACD Histogram -ve Divergence – Bearish trend

29 September 2014, Monday Stocks Scan for Stocks closed greater than ten (10) cents

1. Stock closed more than ten (10) cents and volume traded greater 500K
2. MACD line crosses above MACD signal – Bullish trend
3. MACD line crosses above zero line – Bullish trend
4. MACD Histogram +ve Divergence – Bullish trend
5. MACD line crosses below MACD signal – Bearish trend
6. MACD line crosses below zero line – Bearish trend
7. MACD Histogram -ve Divergence – Bearish trend

To read more on other posting:

1)  What is next likely level might hold the “falling knife” – ST Index

2) Moving Average Convergence Divergence MACD – September 23, 2014

3) Free MACD Scan, 26 September 2014

Stock trading is not a get rich quick scheme.

Thanks for visiting the site, AmiBrokerAcademy.com.

Moses

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