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Healthy Crossover
by kensey

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Mindspring Enterprises Inc (MSPG)







A MACD crossover occurs when the red line crosses over the blue line on the indicator graph.

Take a look at the strong crossover of the MACD signaling lines that occurred in mid-June.

This event is marked by the little green up-arrow on the MACD indicator graph. The arrow corresponds to the start of the green bar over the price graph. When this happens to a stock, it's said to have "gone MACD green."

What makes the MACD crossover that occurs in mid-July a "nice divergence?" For one thing, the crossover occurred above the centerline. This is most important, because it shows that this stock is in good shape from the get-go and not coming off a steep sell off.

Here's a tip: Get into the habit of eyeballing the MACD lines before you look at the price graph, and try to envision what the price graph is going to look like. This will help you interpret what this indicator means.


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