Moving Average Convergence Divergence, MACD, November 3, 2014

November 8, 2014

Essentials of Trading

Trading is not the everything; as trader you must be aware that trading is not everything. You have family, health, community, and many many more things to take care of. Please get your priority right!

Moving Average Convergence Divergence, MACD

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.

Four ways to trade:

1. Trade Breakout
2. Trade with Trend
3. Trade counter Trend
4. Trade picks Tops or 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.

November 3, 2014, Monday Free Singapore Stocks MACD 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

3 November 2014, Monday Free Singapore Stocks MACD 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) Moses’ Free Singapore Stocks MACD Scan – September 15, 2014

2) Think Think (Things) Got More Things! Really! Moses’ Stock Analysis

3)  Picture Worth a Thousand Words – YangZiJiang, BS6 Update

Stock trading is not a get rich quick scheme.

Thanks for visiting the site, AmiBrokerAcademy.com.

Moses

DISCLAIMER

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.

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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.