lowtrade

[lowtrade]

MACD calculates the absolute difference between two moving averages. This means MACD values are dependent on the price of the underlying security. MACD for a $20 stocks may range from -1.5 to 1.5, while MACD for a $100 may range from -10 to +10.

This is telling you MACD accuracy can be seen better in a high priced stock. Kind of like focusing in on a chart from 6 month to 3 month, to be able to see what's happening more clearly. MACD is also better for longer term evaluations because it does not show change, as quick as other trend indicators.

Look at the DMI Directional Movement Indicator, also called the ADX, but ADX is just one part of the indicator. It reacts more quickly and should be used for trend when evaluating short term.

Basically your looking at a slower indicator. (A big ship takes longer to turn then a small ship, THING)

PS; a 105% retrace is NOT consolidation. It's mindset reversal. Hope you huntch is correct. But Your actions today completely disregarded 2 swing trader best practices. You did not create capital preservation and take profits in a strong retrace. And you added new money to a failing trade.

I hope being right pays off, for you, with a reversal of the reversal. Because being correct, by protecting gains was not done.

Strictly a high risk offensive play. Show me the logic in that. Throwing a bomb on 3 down when your at the 10 yard line. Most coaches would run trying to get more room for the punter. Now your punting from your own end zone. No gains there.