T/A ETF AND INDEX

[capt_jmj]

RB - It is a 10 day, 66 day Moving Average Convergence Divergence indicator. The MACD itself is a histogram of the difference between the two EMAs. MACDs are often better than single or double EMA crossovers in that they show a trend change much more quickly. For example, at a market bottom, the MACD typically exhibits a local minimum (max negative), but then begins to increase, indicating a new uptrend has begun, when it may take several more days for the EMA crossover to occur. Moreover, the slope of the MACD, which if you recall from your calculus is just the instantaneous rate of change of a function, tells you precisely how fast the MACD is changing. For our purposes, we further smooth the slope to avoid whipsaws, but it actually begins to flatten out, e.g. gets less negative/positive, as you near an IT bottom/top.



Hope this helps...


Kind regards,
-CAPT J

"What would you attempt to do if you knew you could not fail?"