The Votes Have Been Tallied, and your Winner Is... with a whopping 24% of votes
Construction & Application of the MACD Indicator
Seminar: The man who developed the Moving Average Convergence-Divergence (MACD) indicator will teach you the intricacies of this popular and effective indicator. Professional trader, Gerald Appel will lead a seminar where he will explain the basic construction of the MACD indicator and the principles that underlie the patterns it describes. He will show you the basic buy and sell signals generated by the MACD, and then build upon those signals to demonstrate how to use longer and shorter term MACD lines to refine buy and sell signals. He will also show how to adjust MACD signals for market trend. Gerald will also cover stop-loss techniques and the application of cyclical phases. He will how you how to use MACD to determine when very strong market up moves are in progress.
Covers:
The Basic Buy/Sell Signals
Using Divergences to Recognize the Most Reliable Signals
Further Examples of Divergences
Comparing MACD To A Price Momentum Oscillator
Comparing MACD Combinations with Trend Following Techniques for More Accurate Signals
MACD During a Strongly Up-trending Market Period
MACD During a Strongly Down-trending Market Period
Treasury Bonds, MACD, and a Strong Uptrend
The Stop Loss Signals for an Unsuccessful Trade
Using Trendlines to Confirm Buy/Sell Signals
Long Term MACD Signals- The Start of a Bull Market
A Long Bull Market - Then the Crash
Using Monthly MACD to Define Very Major Trends
MACD as a Day-Trading Tool
Using Time Cycles to Confirm MACD Signals
When MACD Does Not Provide Timely Signals.
See Gerald Appels, "Construction and Application of the MACD Indicator" by clicking the links below...
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Dear Lindsay
You did a good job explaining the entries and timing. Thanks for your help on that. And, thanks for posting Joe Ross on Stops. You are an asset to the trading community and to Market Club !
Without doubt - your diligent attention to my question makes me glad that I am with Market Club.
Hi Lindsay Thanks for your help to all of the traders. I would love to see any topics on Position Management or Stop Loss Placements. Since I am not sure just what generates a Sell Signal based on the Triangles, it is often hard to know where to place a stop loss. For an example of my question, let me use TXN which just signaled a Buy based on Triangles. It is also in a strong uptrend. Let's suppose that I was fortunate enough to be watching TXN when its Triangle Signal was given on June 8 to enter at 35.75 and am now Long. I would want to place my stop at the Triangle Sell Signal on the daily chart. So - what is that signal? How do I know what generates that signal? Many times it looks like it is two bars back but sometimes that is not it. In the case of TXN, where would one place a stop loss in order to be out of the position if the Triangle turned SELL or SHORT on the Daily Chart? Thanks Tommy Beard
HI TOMMY!
Thank you for your thanks! I am always trying to help... I truly am one of the annoying good-mooded people. I was actually planning to put up a lesson on stops and money management lesson/seminar from Joe Ross... but it lost in the poll to the MACD. I was surprised myself, because the majority of questions tend to be on stops. Drum Roll PLEASE... I will post up the lesson later today.
Ask for your questions... The algorthium (signal trigger) is based on many different factors. Moving Averages, trending patterns and rate of change just to name a few. There are also 5 weighted time sensitive factors including last hour close above 5 hour moving average, new 3 day high/low, last price above/below the 20 day moving average. New 3 week high/low and new 3 month high/low.
I was looking at TXN and it seems like you are not filtering your trades. Also it seems that you are a short term trader. I was looking at an intermeddiate sytle, and that was rather profitable. For example on the monthly chart you would have taken 4-16-07 @ 31.47 as your initial entry point. Then you would look to your weekly in which you would have found an out 34.48 (+3.01/share) and then back in on 6-11 @ 36.24 a long position.
Now on a short term we also want to trade with the trend, so lets use our weekly to determine trend and our daily to determine timing. Let's say we got a weekly at 4-16 @ 31.47. We would look to our daily and would have gotten our out @ 34.67 (+3.2/share). Back in @ 35.11 our at 36.27 (+1.16/share). In @ 35.42, our at 34.95 (-.47/share) ... so on and so forth. Make sure you filter your trades with a longer term trend. I suggest using the longer term trend signal as your initial entry point and the short term signals as your timing points.
Because there are so many styles of trading and there are many ways to use our charts and signals, we are unable to suggest stops... plus they would have to change for all of our 230,000 signals every time there was a significant price change.
With that said, please keep an eye out for my post later today. Joe Ross discusses many different ways to set stops... you may find one that your greatly prefer over others.
Hope I helped, let me know if I can further explain or clarify.
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