1 June, 2019
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000001.SS Shanghai Stock Exchange Composite index 上海证交所指数 Stock Charting
Study Shanghai Stock Exchange Composite index 上海证交所指数 Stock chart and MACD.
See chart, picture worth a thousand words.
In a big picture, we see the price action after the high the price action begin to go lower. Now the price action has rebounce after the double bottom follow the positive MACD divergence hint.
Now the price action has breakout higher than the last May high. Price Action again follow the negative MACD divergence and begin to deep.
Trade with your eyes open.
You may ask, why MACD indicator?
MACD indicator is a useful in addition to price action strategy. It is a good measure of momentum, trend direction and can also be a good guide to the relative strength of the market, indicating whether the market is overbought or oversold.
So, MACD is a leading to find end of trend. You could get ready to take profit or enter the market.
Disadvantage is subjective to the trader. If you are used other than identify of end of trend, you will find it is not useful. Beside that MACD is like traffic light. Check yourself, do you stop at every traffic light. I believe it is not. So, same same for MACD. Not all end trend will end.
Moses Stock Observation
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Disclaimer
The above result is for illustration purpose. It is not meant to be used for buy or sell decision. We do not recommend any particular stocks. If particular stocks of such are mentioned, they are meant as demonstration of Amibroker as a powerful charting software and MACD. Amibroker can program to scan the stocks for buy and sell signals.
These are script generated signals. Not all scan results are shown here. The MACD signal should use with price action. Users must understand what MACD and price action are all about before using them. If necessary you should attend a course to learn more on Technical Analysis (TA) and Moving Average Convergence Divergence, MACD.
Once again, the website does not guarantee any results or investment return based on the information and instruction you have read here. It should be used as learning aids only and if you decide to trade real money, all trading decision should be your own.