MACD stands for Moving Average Convergence Divergence. It is a technical analysis (TA) indicator created by Gerald Appel in the 1960s. It shows the difference between a fast and slow exponential moving average (EMA) of closing prices. MACD is made up of 2 lines. The MACD Line and MACD Signal Line.

Setting:

Common MACD setting is 12, 26, 9. The standard periods recommended by Gerald Appel; 12 and 26 days.

MACD is plotted = EMA [12] of price – EMA [26] of price

MACD signal line is plotted by smoothing MACD line with a further EMA. Sometimes, SMA (simple moving average) is used. The standard period for this is 9 days;

(MACD) Signal line = MEA [9] of MACD

In 1986 Thomas Aspray created MACD Histogram. It is the difference between the MACD and the signal line and it represents in a solid block histogram style;

(MACD) histogram = MACD – Signal Line

Usage:

MACD is a trend following tool and a momentum indicator that shows acceleration and deceleration of a trend. It is useful for spotting major trend reversal.

• MACD line crossing the signal line.
• MACD line crossing zero line.
• Divergence between price and histogram, or between MACD line and price.

Buy Signals – when the MACD Line crosses above the MACD Signal Line or MACD Line crosses up Zeroline. Sell Signals – when the MACD Line crosses below the MACD Signal or MACD Line crosses down Zeroline. Divergence for spotting the trend reversal.

These are the Top 10 stocks in volume showing MACD signals; a 2-day scanning results for trading closed 8 October 2009.

Definition:

MACD stands for Moving Average Convergence Divergence. It is a technical analysis indicator created by Gerald Appel in the 1960s. It shows the difference between a fast and slow exponential moving average (EMA) of closing prices. Common MACD setting is 12, 26, 9.

Setting:

MACD is made up of 2 lines. The MACD Line and MACD Signal Line.

Usage:

Buy Signals – when the MACD Line crosses above the MACD Signal Line or MACD Line crosses up Zeroline.
Sell Signals – when the MACD Line crosses below the MACD Signal or MACD Line crosses down Zeroline.

Disclaimer

The information are not meant to be used for buy or sell decision. We do not recommend particular stocks. If particular stocks of such are mentioned, they are meant as demonstration of Amibroker as a powerful charting software and MACD. These are script generated signals. Not all scan results are shown here. The MACD signal should use with price action. Users must understand what MACD and price action are all about before using them. If necessary you should attend a professional course to learn MACD. Once again, the website does not guarantee any results or investment return based on the information and instruction you have read here.

These are Top 20 Singapore stock in volume showing MACD signals; a 2-day scanning results for trading close 25 September 2009.

AmiBroker is a powerful charting software that support scanning. We offer a value added Quick Start Package for you to get started with your Technical Analysis practice with AmiBroker and Singapore adjusted data. You can practice your MACD High Performance Setup with your favour stocks or scan the entire exchange for potential stocks for investment. See the example for the MACD scan results. Your investment (to get a copy of AmiBroker and Singapore adjusted data) is one time, no subscription, and no annual fee.

Example,

Notes:

MACD stands for Moving Average Convergence Divergence.
The indicator is made up of 2 lines. The MACD Line and MACD Signal Line.
When the MACD Line crosses above the MACD Signal Line or MACD Line crosses up Zeroline, the trend is bullish.
When the MACD Line crosses below the MACD Signal or MACD Line crosses down Zeroline, the trend is bearish.

Disclaimer

The information are not meant to be used for buy or sell decision. We do not recommend particular stocks. If particular stocks of such are mentioned, they are meant as demonstration of Amibroker as a powerful charting software and MACD. These are script generated signals. Not all scan results are shown here. The MACD signal should use with price action. Users must understand what MACD and price action are all about before using them. If necessary you should attend a professional course to learn MACD. Once again, the website does not guarantee any results or investment return based on the information and instruction you have read here.

Can you do your own trade analysis? Yes, you can after you have learn the technical analysis and using a powerful charting software, like AmiBroker charting software.

Many may trade on market news and fundamental analysis. But how many have really read and the understand the company financial report or have checked the company profile? Besides that by the time you get the good news you are likely to miss the rally. So, why chase. Or, do you dare to chase when the price has moved so far away. The right approach is you should anticipate the move through technical analysis. Plan your trade and trade your plan.

Why don’t you do your own analysis using a good charting software? A charting software depending on two things; historical price and volume. A good charting software equips with all the indicators and allow you to draw your own study. With which it can plot very nice chart showing the market trend.

You may start with using support and resistance. Support and Resistance Analysis is the most powerful method that gives you the buy or sell signal. Buy at support or break of resistance. Sell at resistance or break of support. Combine support and resistance with other indicators such as MACD divergence will give a very good buy or sell strategy.

We offer a value added Quick Start Package for you to get started with your Technical Analysis practice with AmiBroker. You can practice your MACD High Performance Setup with your favour stocks. See the example for the MACD scan results.

Example,

To identify the stocks likely to move. The following are results from AmiBroker using MACD script. These are Top 13 Singapore stock in volume showing MACD signals; a 2-day scanning results for trading close 4 September 2009 on Singapore stocks listed with Singapore Stock Exchange, SGX.

Disclaimer

The information are not meant to be used for buy or sell decision. We do not recommend particular stocks. If particular stocks of such are mentioned, they are meant as demonstration of Amibroker as a powerful charting software and MACD. These are script generated signals. Not all scan results are shown here. The MACD signal should use with price action. Users must understand what MACD and price action are all about before using them. If necessary you should attend a professional course to learn MACD. Once again, the website does not guarantee any results or investment return based on the information and instruction you have read here.

What is next? Up? or Down? Singapore Stock Markets Straits Times Index has moved up again this week (week end August 14, 2009) after a week long of downward movement. Are the gains transient? Does the market have enough strength? A trend remains to be seen.

Are you able to tell? Or do you only listen to your friends or experts advice? Or wait and see, then quickly jump in to join the flow. Yes, you can analysis yourself. Other than the fundamental and many uncertainty, from the Technical Analysis (TA) and a professional charting software (eg AmiBroker) you can spot critical resistance and support. The Straits Times index (STI) has hit a important resistance to be broken before it can continue it upward movement. When? You need to wait for the market to show hands. Of course, when it breakds it require strength too to keep the momentum. Otherwise, the breakout is only temporary. See charts for the illustration.

So, do you think it is time for you to consider learning the Technical Analysis? It will help you to understand the market emotions and the traders psychology. You are no longer just depending on markets “news”. You will be able to plan and decide your trading strategy. There are many courses out there in the market teaching Technical Analysis. TerraSeeds conducts a few down to earth TA courses; see TerraSeeds website for more information; http://www.terraseeds.com/.

The following is the illustration of the STI Monthly Chart and analysis.

The following is the illustration of the STI Weekly Chart and analysis.

Disclaimer:

The information are not meant to be used for buy or sell decision. We do not recommend particular stocks, bonds, options, futures and any securities of any kind. If particular stocks of such are mentioned, they are meant as demonstration of Amibroker as a powerful charting software and the important of Technical Analysis. The information convey here is intended to provide you with basic information, methods, and strategies as education purpose. You should seek for a professional course to learn Technical Analysis. There are many other factors to be considered such as wait for market to show hands. Users must understand what Technical Analysis is all about before using it. Once again, the website does not guarantee any results or investment return based on the information and instruction you have read here.

Stock markets have rocketed up, and many are rejoicing. Are the gains transient? Can it be sustainable? A trend remains to be seen. Singapore Straits Times Index (STI, or ST Index) has climbed from 1485, from March 10, 2009 to 2659, July 31, 2009. a 1179 points higher a short (near) five months.

Other than the fundamental and many uncertainty, from the Technical Analysis, there is a critical resistance to be broken and stay broken. The index has to close up above the resistance to confirm the break. However, it require strength too to stay above the resistance and keep pushing up. Otherwise, the resistance may turn support (later). See chart for details.

Disclaimer:

The information are not meant to be used for buy or sell decision. We do not recommend particular stocks, bonds, options, futures and any securities of any kind. If particular stocks of such are mentioned, they are meant as demonstration of Amibroker as a powerful charting software and the important of Technical Analysis. The information convey here is intended to provide you with basic information, methods, and strategies as education purpose. You should seek for a professional course to learn Technical Analysis. There are many other factors to be considered such as wait for market to show hands. Users must understand what Technical Analysis is all about before using it. Once again, the website does not guarantee any results or investment return based on the information and instruction you have read here.