 |
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
 |
 |
Education | PDF Downloads | Join for Free | Login | Logout | Customize | Help | |
 |
 Using ClearStation |
 Reading Graphs |
 Trending |
Oscillating |
Patterns |
Portfolio Management |
Mr. Tax Man |
Trading Basics |
 Index |
Glossary |
 Return to Education |
|
|
Constant Rate of Change by kensey |
||||
 |
|||||
| Previous |
Next |
List All |
Return to Trending |
|
|
|
Dow Jones 30 Industrials (_INDU)     |
Throughout March, and for most of April, the rate of increase in the DOW was so constant that MACD Histogram doesn't really tell you anything meaningful. The uptrend underneath the bullish green bar is so linear that the moving averages used to derive MACD are essentially moving in lockstep. There is simply not much of a notable divergence in prices. MACD is best used to detect price divergences. It's most informative when prices are changing direction. Once that change of direction is consummated, the subsequent crossovers in the same direction (bullish in this case) are not as informative. MACD Histogram hits the ceiling in February. It starts tracing down, approaches the centerline, and proceeds to wobble. The humps in March and early April are negligible. As you can see, MACD Histogram had big things to say in February. It shouted out through
a megaphone. But once the uptrend got underway, there really
wasn't much else left to say.
|
| |
 |
|
|
||||||||||||||
| About Us | Help | Feedback | Member Agreement | Privacy Statement | Join | FAQ |
|
||||||||||||||