Moving Average Convergence Divergence MACD – November 4, 2014

November 9, 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.

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.

4  November 2014, Tuesday 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

4  November 2014, Tuesday 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

 Essentials of Trading: Eliminating Fear

Trading is nonnegotiable; you cannot negotiate for the price. Next, FEAR is common among many traders. However, if you want to trade you have to face it. The Fear we refer to is different from those horror movies. In business; everything can fail. In order to face the failure, there is business recovery plan. In trading, one of the great question to ask on FEAR is what can be the worst thing to happen. Do you have a plan to counter it? Trade with a plan. 

To read more on other posting:

1)  Moving Average Convergence Divergence, MACD – October 31, 2014

2) Set Your Goal!

3) Trade What You See, Moses’ Stock Column

Stock trading is not a get rich quick scheme.

Thanks for visiting the site, AmiBrokerAcademy.com.

Moses

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