Macd
- Thread starter richk
- Start date
oversituation means : overbougt / oversold
In daytrading the more difficult is not to find signal it is to eliminate signals. It means a different approach.
For example with MACD if you have a double signal it is far better like a divergence and a cross in the same time.
sorry for the french language on the graph bellow but i'am french
In daytrading the more difficult is not to find signal it is to eliminate signals. It means a different approach.
For example with MACD if you have a double signal it is far better like a divergence and a cross in the same time.
sorry for the french language on the graph bellow but i'am french
Nice chart spieler. IMO, there is no more powerful signal than the macd divergence.
For those who are new to it, the term divergence used above is not in the same context as the in the name of the indicator. Moving average convergence divergence refers to the action of the averages that make up the indicator itself.
Divergence as spieler et al are referring to is the action between price and the indicator. I saw a post that used convergence to describe the action of the price and the indicator. This is not correct. Price going down and indicator going up is considered a divergence between the two. Price going up and the indicator going down is considered a divergence between the two. Neither one represents a convergence.
It's not about being right... it is about being accurate.
For those who are new to it, the term divergence used above is not in the same context as the in the name of the indicator. Moving average convergence divergence refers to the action of the averages that make up the indicator itself.
Divergence as spieler et al are referring to is the action between price and the indicator. I saw a post that used convergence to describe the action of the price and the indicator. This is not correct. Price going down and indicator going up is considered a divergence between the two. Price going up and the indicator going down is considered a divergence between the two. Neither one represents a convergence.
It's not about being right... it is about being accurate.
Quote from spieler:
oversituation means : overbougt / oversold
In daytrading the more difficult is not to find signal it is to eliminate signals. It means a different approach.
For example with MACD if you have a double signal it is far better like a divergence and a cross in the same time.
sorry for the french language on the graph bellow but i'am french
ok, that's what i thought you meant...
so basically you're defining overbought/oversold levels by the divergence between price and the MACD...
have you found that to be consistent in all market conditions? choppy and trending?
thanks
onelot
I've got the macd set at 12,26,9
And to add to the misery, I have the 10 over 30 sma going also.
You may think it's ma overkill
But I am just trying to stay out of that casino they call Congestion
And scalp in the Land of Safe Milk and Honey
Anyway you boil it down, it all comes out to buy support and sell resistance. Only in my book, the best resistance to sell is that which has just recently been converted from Supportism.
And to add to the misery, I have the 10 over 30 sma going also.
You may think it's ma overkill
But I am just trying to stay out of that casino they call Congestion
And scalp in the Land of Safe Milk and Honey
Anyway you boil it down, it all comes out to buy support and sell resistance. Only in my book, the best resistance to sell is that which has just recently been converted from Supportism.