Replies to post #40106 on Short Term Trading Member Forum

[DowDeva]

Golfin,

I'm not speaking of the MACD. I am speaking of the 19 and 39 moving averages overlaying the NYAD itself. However, while you're at it, MACD moving average system (NOT the histogram, which has a slight lead) is a notoriously lagging indicator, and often the first couple of divergences should be faded in the opposite direction. If you look at MACD from the March 09 low in the chart, it was trending down for a good part of the time while market was rallying.

On the 19 and 39 ema's there are two crossovers to watch for, the 19 ema crossover underneath the 39 ema, and both crossing under the 0 line.

I'll get to your SKF chart tomorrow, my apologies for the delay.

Deva

Ps: May be a gap-down tomorrow, if it rallies from there would be confirmation of 2.5 week low