Moving Average Convergence Divergence, MACD Scan 24 September 2014

28 September 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.

Three trading strategies:

1. Trade the Breakout
2. Trade the Trend
3. Trading Tops and 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.

24 September 2014, Wednesday Singapore Stocks 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

24 September 2014, Wednesday Stocks 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

To read more on other posting:

1)     Be Realistic! Moses’ Stock Analysis

2)    What is next likely level might hold the “falling knife” – ST Index

3)   Chart Does Not Lie! Keppel Tele & Trans

Stock trading is not a get rich quick scheme. Manage your risk and money. 

Thanks for visiting the site, AmiBrokerAcademy.com.

Moses

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