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This is his reply.
I'll check it ou Monday, short of time right now.
Stig
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From: <A
href="mailto:halogen45@xxxxxxx";>LeeSubject: RE: Lee, could
you explain your MACD?Views: 4Date:
3/18/01 12:31 AM
Here's some
info to calm the waters maybe.....I would agree there's lots of ways to
use MACD to enter and exit the market, and to measure increasing and
decreasing strength. I've found it's much like almost every other
indicator....each investor has to find what seems to work for them....the
combination and usage that seems to predict what happens next on a
reliable basis. I've just been using the only MACD settings you can get at
Bigcharts, 12-26-9 are the settings....this is also the default setting at
Stockcharts.com.....no rocket science involved there. The stockchart site
allows you to change the settings, while Bigcharts does not. MACD involves
2 lines that flow up and down....one is the MACD level and then there's
the signal line as they call it. I follow the MACD line, and on the nasdaq
where MACD is falling....the MACD line is below the signal line....both
are falling of course. In my post I was referring to the point where the
MACD line crosses the zero level.Lee
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----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
wavemechanic
To: <A
href="mailto:realtraders@xxxxxxxxxxxxxxx";
title=realtraders@xxxxxxxxxxxxxxx>realtraders@xxxxxxxxxxxxxxx
Sent: 18. marts 2001 02:24
Subject: Re: [RT] MACD
I'm not following what indicator is
talking about. Unless he is using very unusual parameters for MACD, he
should have seen it cross zero a year or so ago for SPX and NDX perhaps six
months ago. I must be missing something. Maybe too much irish
whiskey ;)
wd
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<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
Stig O
To: <A
href="mailto:realtraders@xxxxxxxxxxxxxxx";
title=realtraders@xxxxxxxxxxxxxxx>realtraders@xxxxxxxxxxxxxxx
Sent: Friday, March 16, 2001 12:41
AM
Subject: [RT] MACD
For once ir's not MY post that's
interesting <g>, read what Lhas to say (from the other
list).
Stig
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<FONT color=navy face=verdana,arial,helvetica
size=-1>Interesting....Nasdaq and S&P has just broken down
downside from a FALLING Wedge an incident rarely discussed in the literature
of TA. Anyway, what we uaually see in those cases are powerful steep moves
in the direction of the break. And sometimes we don't even have a test of
the break.It looks really scary on the charts, but I don't know how to
produce pictures from my software to the list, or if it's
possible.Stig======================================A
few charts ago....I discussed the idea of the 'point of recognition',
corresponding to when the MACD crosses the zero line. That being the point
where a sustained move will usually light off, depending on whether MACd is
crossing above or below zero. And when this occurs on a monthly chart it is
usually the mother of all recognition points. In recent years this has
rarely happened on any major index to the downside, but it has now occured
on the nasdaq and the SP500 is going to be next. Many individual stocks have
seen it in the past year and their stock prices have been pummelled into
dust in the process.....but I still wondered how a major average would act.
If it acted like a stock, the downside would be relentless with almost no
upside reversals....straight down to the who knows where. Not like a crash
in terms of all the downside in one day....but spread over weeks and months.
Continuous and without a bounce. Closing every week on the lows and closing
every month out on the lows....the destroyer of wealth for the
longs.You search endlessly for indicators that predict the future
with certainty....and you still wonder and doubt if it could really happen
to a broad index like the nasdaq....but the recognition point doesn't care
if it's LU or CMGI or the nasdaq or the SP500....what is constant is the
outcome after reaching the recognition point. The nasdaq is right on
schedule so far....and the SP500 is next....very likely to go below 1000
before it's over....the bottom of the bull run channel from 1982 is down at
930 right now. Another FF is that eventually 9700 isn't going to work for
the DJIA....the bottom of that bull run channel from 1982 is a bit above
8000 now.LeeTo unsubscribe
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