macd and stochastic

Discussion in 'Technical Analysis' started by weld1, Jun 22, 2003.

  1. weld1


    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?
  2. 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.
  3. funky


    i've found that any blanket statement about the market is usually false.
  4. weld1


    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
  5. funky


    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.
  6. maxpi


    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.

  7. Hubert



    in that order
    rsi moves 1st then stos then use macd as a confrirmation.
  8. jeffrey3


    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.

  9. Depends on settings - for RSI and Stoch. Both can be set for sensitive response or slow response.
  10. jjordan


    #10     Jun 26, 2003