Moving Average Convergence Divergence MACD

November 10, 2014

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.

Four ways to trade:

1. Trade Breakout
2. Trade with Trend
3. Trade counter Trend
4. Trade picks Tops or 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.

November 5,  2014, Wednesday Free Singapore Stocks MACD 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

5 November 2014, Wednesday Free Singapore Stocks MACD 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

Essentials of Trading : News

Reacting to news, one thing in trading is everyone always ask around of what is going to happen. When something publish on the newspaper, everyone will react to it. How many times after you response to the good news and the stock turns bad. This is so true that, if you will stand aside a watch the whole episode, you will easily figure out. The news is target for profit taking.

Do not forget the price time chart has factor in all the fundamental, emotion and others.

To read more on other posting:

1)  Falcon Energy 5FL

2) Stocks Market Lead the Economy? STI

3)  Free MACD Scan, 26 September 2014

Stock trading is not a get rich quick scheme.

Thanks for visiting the site, AmiBrokerAcademy.com.

Moses

DISCLAIMER

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The comment is the author personal experience. There is no intent for your believe and follow.