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 Trending


MACD
Trending
The price action of a stock is categorized as either trending (moving generally up or down) or range-bound (sideways)...

Healthy Crossover
A MACD crossover occurs when the red line crosses over the blue line...

To Trend or Not to Trend
The strongest MACD crossovers occur near the centerline...

How MACD Works
There is no substitute for looking at graphs and pattern matching in your brain...

Where Did the Green Go?
Is it time to bail out of a stock when a bullish green bar is pulled down?

Volatility
What's up with those funky spiked circles on the MACD graph?

More Green Than Red
If you spend a lot of time looking at ClearStation graphs, you will soon notice...

Ill-timed Green Bars during a Downtrend: PTEL
When evaluating the trending bars above a price graph, the color that dominates is the color that counts...

Cementation of the MACD Lines, Part 1
When there is absolutely no change in price, MACD gets a little less useful and signals with a bit of a knee jerk...

Cementation of the MACD Lines, Part 2
Global Marine has been perpetually weak since the red bar appeared in mid May...


MACD Histogram
Depth and Dimension
The MACD Histogram gives depth and dimension to what the MACD lines are telling you...

Maxing Against the Ceiling
What does it mean to say that a stock is "maxing against the ceiling?"

Constant Rate of Change
Throughout March, and for most of April, the rate of increase in the DOW was so constant that...

Dealing with Ill-timed MACD Bars
In mid-August, volatile price action in Image Entertainment (DISK) sent out a green MACD trending bar that was ill timed...


Volume
Volume: Color Coding and Instant Assessment
Each bar in the volume graph (second from the top) is drawn in one of two colors...

Got the Blues?
The late April volume that drove AVEI dropped to a price level where the support line was heavy and did some damage...

It Rallies Tomorrow, Right?
An analysis of the early May 1998 volume going into the stocks that compose the Dow 30 suggests...


Moving Averages
Moving Averages: A Definition
ClearStation uses 13-day and 50-day exponential moving averages...

Acting as a Floor Under Prices: ABT
Moving averages are useful because...

When Not to Chase a Stock
When a stock is in a strong uptrend, it's easy to fall into the trap of...

Acting as a Floor Under Prices: IBM
IBM has been in a very strong uptrend, despite the market's relative waffling overall...

Gravity and EMA 13: TRBD
This stock had an incredible break out in early July 1998, accompanied by all the good things...

Acting as a Ceiling Over Prices: CYBX
Ever since CYBX went out of MACD green in mid-April, the stock's price has slid 70 percent...

An Amazing Floor Under the Price: GMGC
General Magic has technology everyone wants - voice recognition...






A trend occurs when the price of a stock continues to rise or fall over a period of time. In an uptrend, each high is higher than it was the day before. And in a downtrend, each low is lower than the last.

ClearStation stresses the importance of trending. The tendency to trend is the key observation to make on a stock you are considering for investment. Why? Because it's easier to make money on a stock that is moving in a certain direction rather than going with one that is flapping up and down like a beached fish.

Not all stocks trend. By being able to identify those that do, we feel you will be more successful in your investing.

In this section, you'll learn:

  • The merits of following a trend
  • How to read a MACD graph
  • To be wary of volatility
  • How to use the MACD histogram
  • What volume signifies
  • How to use moving averages



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