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Tom:
Your ideas are interesting. I use a price oscillator instead of MACD as I
can easily preset my own parameters. With your Zone definitions and ADX, I
don't think that VHF adds much new information.
MACD is a fairly good indicator. With a stock like AAPL, which has had a
catastrophic collapse in price, it doesn't work well.
> Lionel Issen
> lissen@xxxxxxxxxxxxxx
> ----- Original Message -----
> From: "Tom Strickland" <tstrickland@xxxxxxxxxxxxx>
> To: <metastock@xxxxxxxxxxxxx>
> Sent: Saturday, February 03, 2001 11:58 AM
> Subject: Trending vs. Consolidating Markets
>
>
> > There has been a lot of discussion here lately about determining if the
> > market is trending or consolidating. Most of the talk has been about the
> > ADX and the VHF. Let me suggest an alternate way of making this
> > determination. Take a look at the MACD, and divide it into four zones as
> > follows:
> >
> > Zone 1: MACD>0 and MACD>MOV(MACD,9,E)
> >
> > Zone 2: MACD>0 and MACD<MOV(MACD,9,E)
> >
> > Zone 3: MACD<0 and MACD<MOV(MACD,9,E)
> >
> > Zone 4: MACD<0 and MACD>MOV(MACD,9,E)
> >
> > Now plot the MACD, ADX, and VHF for a given security. You will note that
> > the ADX and the VHF are rising when the MACD is in Zones 1 or 3, and
they
> > will be declining when it is in Zones 2 or 4. Thus, MACD can tell you
> > whether the market is trending or consolidating, AND ALSO the direction
if
> > it is trending. Check it out and see if you agree.
> >
> > There will be no charge for this profound bit of information I am giving
> > you. :-)
> >
> > Tom Strickland
> >
>
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