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ClayTrader

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ClayTrader

Re: d0lphint0m post# 35557

Tuesday, 06/02/2009 10:51:59 AM

Tuesday, June 02, 2009 10:51:59 AM

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Tom - good question!

The distance between the MA's on the MACD represent the "rate of change" that is occurring within the mathematical formulas... in the world of stocks, the "rate of change" is better classified as 'MOMO'... when the lines become separated by a large distance, that is when the MOMO behind the stock is strong and the price is flying, and the opposite is true when the lines converge and are close, that just shows that the MOMO is slowing down...

Hope this answers your question, I'd also point this question at Soapy - he's really good at explaining the math part of things...

Need an Annotated Chart? Stop by my board -- http://investorshub.advfn.com/boards/board.aspx?board_id=8765

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