The unusual values of the MACD are derived from my own research on this indicator I 've tried to find a leading indicator for years and the MACD is one the best IMHO The MACD shows very well: - Divergences - Trend - Strength of trend - Turning points Lorenzo
Macd always looks fantastic in hindsight. It points out every turning point, but I have yet to see anyone trade a macd crossover for any length of time and make consistent money with it. Not saying it cant be done, just that I havent seen it. I would like to see someone do it realtime.
I agree MACD and many other indicators look good with EOD data. More power a trader that can use it real time.
I see the MACD as a band-pass filter, so I correlate its parameters with the time frame and the price's natural waves. I'm also looking at divergences for confirmation, but they don't tell me if a retracement or reverse is coming, and what's its magnitude. I'll be watching your choice of MACD parameters. Thanks.
He must have changed his methods since I watched him but if anyone could do it he probably could. Where is he hanging out these days?
MACD works good if you combine some other indicators with it. It works great on range days but you get a trend day and you will get a lot of fake signals.
i find that MACD works best when there is a defined trend, either upward or downward. When there is a tight range, I see a lot of false signals
Last time he posted he had gotten himself a nice business proposition and it was the reason that he had to pull the charts and end the journal. He's a good man, I learned how to use MACD in real time through his journal.