February 23, 2015
Last week was a short week for Singapore stocks market with two days public holidays on Thursday and Friday.
Lesson
In fact, price is moving in zigzag manner, even when the price is very bullish or bearish. When you look in great detail, the price is still moving up and down. Therefore if you want the price to move further up, the price has to pull back first.
Next, in order to make money in financial markets such as stocks market, we are looking for clue the price is going to move. Therefore trend, divergence and so on are just like traffic light signal you there going to be a continuation or change in the flow direction.
MACD
MACD is a good indicator that gives you early warning in change of price direction. MACD Divergence is one of the good indicator; when price is forming a low high or high high and the MACD line or MACD Histogram is forming a higher low or lower high. Besides the MACD Divergence, the MACD cross zeroline, cross overs, dramatic rise or fall are also good signals on possible price reversal.
Oscillator Moving Average Convergence Divergence
MACD is a popular trend following momentum indicator that shows the relationship of two moving averages of prices action; the MACD line and signal line.
Four MACD Signals:
- 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.
- Divergence – The security price action diverges from the MACD. It signals the end of the current trend.
- 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.
- 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.
Free Singapore Stocks MACD Scan for Stocks closed greater than thirty (30) cents on Monday February 23, 2015
- Stock volume traded greater 500K
- MACD line crosses above MACD signal – Bullish trend
- MACD line crosses above zero line – Bullish trend
- MACD Histogram +ve Divergence – Bullish trend
- MACD line crosses below MACD signal – Bearish trend
- MACD line crosses below zero line – Bearish trend
- MACD Histogram -ve Divergence – Bearish trend
Sorted by bias and volume.
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Moses
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