February 10, 2018

What Is A Market Correction?

Some say when a market drop greater than 10 cent, this pullback can name it correction. In NASDAQ Bank Index case, the ^BKX pullback from above 116 to 106 it is about ten per cent. So, wait for a few more points, you will be able to say NASDAQ Bank Index is in correction. 

From a different angle, the market think the price is too high now. That sell off happened. 

US Stock Analysis

^BKX NASDAQ Bank Index Charting and MACD

Forget the whether there is a correction undergo at this point, just look at the MACD. The MACD and Signal are wide open, the sixth sense will tell you the drift south can not be over, and may be will not over soon; this is just a trader instinct.

Manage your risk!

Powerful Chart Software – AmiBroker

The following chart is produced using AmiBroker charting software. It is a powerful chart software. You plot the stocks you are interested all in one chart, as long as you still could read them. See chart below. 

February 8, 2018 NASDAQ Bank Index and MACD Signals

Moses

AmiBrokerAcademy.com

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.