Just as I noted on Stochastics, there are plenty of places to read up on MACD and the formulas: here from Wikipedia, and here from Investopedia.
An indication that a trend is about to change or end is when the MACD crosses, note the arrows in the picture. (You can click for a larger size.)
On that second crossover, I also had the confirmation of the moving averages crossing at about the same time. This is a chart of the S&P e-mini (ES). I use the MACD in my futures trading, but not with stocks or options….no particular reason, just haven’t found an advantage with it on stocks as I have with futures.
.
.
Sometimes, entranced by the screens, watching equities, options and futures change colors, charts moving in a wave, and indicators pointing in every direction, I just have to scream....
0 Responses to “MACD”