27 February, 2020
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Major US Indexes were all lower, some drop more than thousands points. So, is Amzon stock also affected? See the following chart for details.
AMZN Amazon.com Inc 亚马逊 Charting
Study Amazon.com Inc 亚马逊 stock chart price action and MACD Divergence.
See chart, picture worth a thousand words.
Manage your expectation.
Remember to trade what you see and not what you think.
If you are a divergence trader, you probably has traded one round of divergence trade, taking profit in last August.
And if you are well trained divergence trader, you probably has spotted MACD Histogram has a decline, or strictly speaking a divergence too. You probably has jumped in and taking profit again after you bought the stock again in end December.
To learn more about divergence, you can read more from babypips website.
What is divergence? For simplicity, when price action goes higher and MACD forms lower high, MACD Divergence. Or MACD Histogram MACD-H forms lower high.
MACD Divergence is like a traffic light. What’s a traffic light for? Signal there is a possibility change in flow direction.
Now, when to buy? Wait. Wait for the bullish signal. Add a moving average, such as 200 MA. See 200 MA can support the fall, and hold the price action continue to move south.
Manage your risk.
Moses Stock Observation
AmiBrokerAcademy.com
Disclaimer
The above result is for illustration purpose. It is not meant to be used for buy or sell decision. We do not recommend any particular stocks. If particular stocks of such are mentioned, they are meant as demonstration of Amibroker as a powerful charting software and MACD. Amibroker can program to scan the stocks for buy and sell signals.
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 course to learn more on Technical Analysis (TA) and Moving Average Convergence Divergence, MACD.
Once again, the website does not guarantee any results or investment return based on the information and instruction you have read here. It should be used as learning aids only and if you decide to trade real money, all trading decision should be your own.