Moving Average Convergence Divergence, December 10, 2014

December 24, 2014

 

Hits or Misses

 

Good News, Bad News in the recent market may influence your hit and miss. Is it true? Do remember, bull or bear market, people still profit from it. This is all depending on your trading strategy and reading of the chart (from the chartist viewpoint). Of course, from a fundamentalist is the market news.

 

As a trader, you either trade trend following or reversal. There is not right or wrong way. However you must be able to recognise the trend. (We will discuss in greater details on how to know downtrend or uptrend.) As you determine the direction, you can then trade either the same direction (trend following) or against the direction (reversal).

 

After you have chosen the strategy, next you will find the trigger to enter the trade. Either you use support resistance, or trendline to assist. You can either use breakout or retest as trigger.

 

Now, indicator like MACD is signal to alert you for the trade coming or possible false trend.

 

Oscillator Moving Average Convergence Divergence, MACD is a popular trend following momentum indicator that shows the relationship of two moving averages of prices action; the MACD line and signal line.

The last we look at the Moving Average Convergence Divergence, MACD is twenty days ago. Let’s start scan from December 10, 2014.

Stop and Think

All thing can fail. Therefore, the trend can stop and reverse. The trigger can be a whipsaw.

 

How to trade MACD?

MACD indicator gives you the early warning on possible change of direction, swing high to low or swing low to high. However, remember MACD is like a traffic light. MACD alert you a possible change of direction for example, but it is just like traffic light. The traffic light may not change. So, wait for confirmation; let the trend keep going till you get the confirmation. Be patient!

 

Four MACD Signals:

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.

 

Free Singapore Stocks MACD Scan for Stocks closed greater than fifty (50) cents on Wednesday December 10,  2014

1. Stock 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

 

EZRA HOLDINGS LIMITED	10/12/2014	Bullish	0.55	20244
ASCENDAS REAL ESTATE INV TRUST	10/12/2014	Bullish	2.36	12018
CAPITAMALL TRUST.	10/12/2014	Bullish	2	9692
CAPITACOMMERCIAL TRUST	10/12/2014	Bullish	1.71	5802
KEPPEL LAND LIMITED	10/12/2014	Bullish	3.37	1018
CIVMEC LIMITED	10/12/2014	Bullish	0.72	810
FRASERS CENTREPOINT TRUST	10/12/2014	Bearish	1.895	1502
HI-P INTERNATIONAL LIMITED	10/12/2014	Bearish	0.725	1456
STARHILL GLOBAL REIT	10/12/2014	Bearish	0.8	1002
PERENNIAL CHINA RETAIL TRUST	10/12/2014	Bearish	0.535	991

Sorted by bias and volume.

 

 

Free Singapore Stocks MACD Scan for Stocks closed greater than ten (10) cents on Wednesday 10 December 2014

1. Stock 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

 

Company	Date	Bias	Close	Vol.(K)
PACIFIC CENTURY REGIONAL DEVTS	10/12/2014	Bullish	0.27	51291
EZRA HOLDINGS LIMITED	10/12/2014	Bullish	0.55	20244
ASCENDAS REAL ESTATE INV TRUST	10/12/2014	Bullish	2.36	12018
CAPITAMALL TRUST.	10/12/2014	Bullish	2	9692
CAPITACOMMERCIAL TRUST	10/12/2014	Bullish	1.71	5802
SWIBER HOLDINGS LIMITED	10/12/2014	Bullish	0.275	3152
BIOSENSORS INT’L GROUP, LTD.	10/12/2014	Bullish	0.495	2509
CH OFFSHORE LTD	10/12/2014	Bullish	0.465	1207
KEPPEL LAND LIMITED	10/12/2014	Bullish	3.37	1018
CIVMEC LIMITED	10/12/2014	Bullish	0.72	810
MERMAID MARITIME PUBLIC CO LTD	10/12/2014	Bullish	0.29	767
PENGUIN INTERNATIONAL LIMITED	10/12/2014	Bullish	0.22	749
RAFFLES EDUCATION CORP LTD	10/12/2014	Bullish	0.31	590
SINO CONSTRUCTION LIMITED	10/12/2014	Bearish	0.29	8290
FRASERS CENTREPOINT TRUST	10/12/2014	Bearish	1.895	1502
HI-P INTERNATIONAL LIMITED	10/12/2014	Bearish	0.725	1456
STARHILL GLOBAL REIT	10/12/2014	Bearish	0.8	1002
PERENNIAL CHINA RETAIL TRUST	10/12/2014	Bearish	0.535	991

Sorted by bias followed by volume.

 

Thanks for visiting the site, AmiBrokerAcademy.com.

Moses

 

DISCLAIMER

Stock trading is not a get rich quick scheme and it is high risk.

Information provided here is of the nature of a general comment only and no intend to be specific for trading advice. It has prepared without regard to any particular investment objectives, financial situation or needs. Information should NOT be considered as an offer or enticement to buy, sell or trade.

You should seek advice from your broker, or licensed investment advisor, before taking any action.

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.

Trading is personal. You are responsible for your own trading decision.

The comment is the author personal experience. There is no intent for your believe and follow.