Allstocks.com's Bulletin Board: MACD ?????

This is topic MACD ????? in forum General Investing Topics at Allstocks.com's Bulletin Board.

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Posted by biker0962 on :

okay im on E-trade,Ive been using the MACD as 1 of my indicators, I understand the fast line and the slow line and I understand what the buy and sell signals look like, but what throws me is the divergence, what is divergence in plain english and how does it relate to the fast and slow lines
thanks

Posted by Ace of Spades on :

Divergence - When the security price diverges from the MACD. It signals the end of the current trend

http://www.investopedia.com/terms/m/macd.asp

Webster Dictionary...

1 a: a drawing apart (as of lines extending from a common center) b: difference, disagreement c: the acquisition of dissimilar characters by related organisms in unlike environments
2: a deviation from a course or standard
3: the condition of being mathematically divergent

http://www.m-w.com/dictionary/divergence

Stockcharts deffinitons or Lesson...Whatever you wanna call it!.......

http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:movi ng_average_conve

In my opinon....learn to use the MACD on the DOW chart...

http://stockcharts.com/h-sc/ui?s=$INDU&p=D&b=5&g=0&id=p70049875343

then you will learn to trade the best stocks like GOOG, AAPL, BIDU, Ect!

They move with the DOW!

Posted by biker0962 on :

thanks ACE, the stockchart lesson is great, im gonna have to print that and study it for awhile, thanks you for the time you put into answering my question

Posted by Ace of Spades on :

You're welcome!