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MACD

helpfulfacts — Sun, 22 Jun 2008 03:56:52 +0000

MACD, the Moving Average Convergence/Divergence indicator, developed and popularized by Gerald Appel, provides a uniquely sensitive measurement of the intensity of the trading public’s sentiment and provides early clues to trend continuation or reversal. According to Appel, this indicator is particularly dependable in signaling entry points after a sharp decline. The MACD indicator may be applied to the stock market as a whole or to individual stocks or mutual funds.

The MACD indicator uses three exponential moving averages: a short or fast average, a long or slow average, and an exponential average of the difference between the short and long moving averages, which is used as a signal line. (See Moving Averages below for a discussion on simple and exponential moving averages.)

MACD reveals overbought and oversold conditions for securities and market indexes, and generates signals that predict trend reversals with significant accuracy.
MACD produces less frequent whipsaws, as compared with moving averages.
Telescan uses a type of shorthand to refer to MACD indicators. An “8-17-9 MACD”, for example, uses a short (fast) moving average of eight days or weeks, a long (slow) moving average of 17 days or weeks, and an exponential moving average of nine days or weeks. (The use of days or weeks depends on the time span of the stock graph.)
Gerald Appel recommends an 8-17-9 MACD to generate buy signals and a 12-25-9 MACD to confirm a sell signal for a stock, which has had a strong bullish move.
Regardless of the accuracy of this indicator, one should not rely on a single indicator. Study as many technical and fundamental indicators as possible before arriving at your investment decisions.

My case for solar and STP

helpfulfacts — Wed, 23 Apr 2008 19:41:50 +0000

Got in on STP at 46.25 today. If you look at the chart on the stock today the range has been wild. But it is staying within the 200 and 20 day moving averages. As of today those values are 50.05 and 46.66 with 44.90 as 50 day moving average. There should be strong support at these levels and the charts confirm channel trading since beginning of April. FSLR reports next wednesday. Assuming big profits, expect whole industy to get a boost. Hopefully, a runup preearnings will drive this industry and take profits before next wednesday.

RIO - C & H

stockcaca — Mon, 21 Apr 2008 06:36:44 +0000

Commodities, high accumulation

Started on 2/28 -4/9

Top - 37-ish, Bottom - 29.50, $7.50

Case study of Ford

helpfulfacts — Sun, 20 Apr 2008 16:54:51 +0000

This is a classic breakout with all the right signs of support.
High volume, high accumulation and a significant breakout which hasn’t completed yet.

Not bad for 20+% gain if you caught the breakout and 50+% if you caught it near the bottom. Notice also the 2 bull flags along the way.

DE - Cup & Handle

stockcaca — Sun, 20 Apr 2008 04:11:05 +0000

Agriculture Machinery is hot…OBV is high. Volume is increasing..RSI is also

Started: 3/06-4/08, Target $100, 1 Month

Top of Cup: $89..Bottom: $78