Nasdaq

A

ARogueTrader

nasdaq.png


nasdaq1.PNG
 
I assume you're trying to show a divergence between the MACD histogram and price, but there isn't one since the Naz is trending.
 
Naz 2250 not out of the question. Then again, neither is 900.

Since 2250 seems more likely than 900 - 900 is probably what it'll reach first.....lol

Higher seems to be better for bigger daily ranges so let's go higher! :)
 
Hi dbphenix,

How that there is no divergence since the Nasdaq is trending ?

I've always thought that a divergence was a weakness of the trend, even a sign of a possible reversal.

Can you tell us how you use the divergences ?


Regards,
 
Quote from Sirius1224:

How that there is no divergence since the Nasdaq is trending ?
More...

Because of the way the MACD is constructed. The MACD histogram measures the distance between the two moving averages which constitute the MACD. If and when the faster MA moves at a steeper angle than the slower, the distance between the two increases and the histogram bars lengthen. When that angle decreases, the separation decreases and the bars shorten.

Once the instrument finds itself in a sustained trend, the moving averages begin to move at approximately the same rate at approximately the same time. They may even "rope". Therefore, the histogram bars shorten even though the instrument is in a sustained trend.
 
You are completely right !

When one observe the MACD curves - not the histogram - there there is indeed no divergence.

I will go to bed smarter this night , thanks for the observation.

Regards,




" Because of the way the MACD is constructed. The MACD histogram measures the distance between the two moving averages which constitute the MACD. If and when the faster MA moves at a steeper angle than the slower, the distance between the two increases and the histogram bars lengthen. When that angle decreases, the separation decreases and the bars shorten. "

:mad: :mad: :mad: :mad: :mad: :cool:
 
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