read in a post the other day that macd and stoch were only good to use when the market was at a bottom. any opinions?
Well, tops and bottoms are usually treated the same manner. A great example : An MACD divergence PLUS a stochastic divergence at o/b situations is an excellent Sell signal, if you are lucky to meet them the same day. Exactly the same at o/s levels.
hey funky, i think i misinterpreted that. i don't know, but i'am looking for a couple indicators to confirm what i think i see in the moving avg. of stock prices on an intraday basis. any ideas u would like to share. thanks weld1
if you are looking to confirm what you see in moving averages in price, then the MACD is ONE good tool. it, by definition, is constructed by two exponentially moving averages. try looking at the two individual emas and the MACD with those emas at the same time and you will see how it works.
That is the only use I found for them but I did not try too hard to find other uses. I optimized them together and use them like a pattern both for short and long entries. The Stochastic-RSI looks like it gives earlier indications though, haven't investigated it yet. Max
Could you please illustrate it with a chart or two as to how you use RSI first and Stochastics next and MACD for confirmation? Also what look back period would you recommend using for each of the indicators. Thanks a million. Jeffrey
Here's a snapshot of the Dow an intraday daily chart. The MACD crossover has happened. I don't think it will go sideways long? I think this chart has to retrace. The RSI just crossed 50 http://share.esignal.com/groupcontents.jsp?folder=&picture=0626indu.png&groupid=14 Who believes? ~j