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Re: fashionman post# 211

Wednesday, 03/30/2005 10:37:17 PM

Wednesday, March 30, 2005 10:37:17 PM

Post# of 44374
fashionman macd question

There are 3 common methods to interpret the MACD:
1. Crossovers - When the MACD falls below the signal line it is a signal to sell. Vice versa when the MACD rises above the signal line.
2. Divergence - When the security diverges from the MACD it signals the end of the current trend.
3. Overbought/Oversold - When the MACD rises dramatically (shorter moving average pulling away from longer term moving average) it is a signal the security is overbought and will soon return to normal levels.

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