Replies to post #9202 on New Trading Systems - Think Tank

[GLENO34]

The term reset just means a chart's indicators will move from a position of OS back to a position of OB and vice versa..So the 15 min chart was OS yesterdsay and will now have to go back to OB again..Sometimes in real strong trends the minute charts will not completely reset..This could be an example happening now..The 60 min chart was very OB and should go down to reset the indicators to the bottom of their ranges..but if we have a strong trend then the minute charts only pull back a little..like 1/2 way or less before turning back up and going to new highs..Right now seems like we are in whipsaw mode..LOL..Hard to hit the targets...

[bbgold]

Here is MACD info
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:moving_average_conve
It helps to give an idea of the Momentum imo of the price movement.
It is related to the Moving Averages so if you have a positive moving MACD the price movement is moving in a positive trend. The higher the divergence the more Momentum the Markets have. When the price movement begins to stall the MACD will start to decline, or reset to zero, as the Momentum is lost. Once the MACD crosses below the midline and starts to move below it then the Price action is showing a negative trend. Again the divergence of the MACD to the downside will indicate Momentum of the trend.
If you look at the MKTSS board iBox take a look at the INDU and SPX charts and you will see where the MACD is now making a 'reset to zero', which is an indication that the consolidation in the Market is losing it's upside momentum. If the MACD continues to decline below 0 then the Markets could gain momentum to the downside. Typically the MKTSS would look for a 2nd or 3rd MACD crossover as a change of direction. You can see in the MKTSS chart the MACD has had 3 negative crossovers from the last 4 days. With the MACD back to 0 the Markets are back to Neutral as far as the Momentum of the trend. Any further break to downside or upside from here is uncertain until the Price, MAs give the MACD some inclination of movement. For me the crossovers are critical leading indicators, which for now tend to lean towards downside from here, we shall see.