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OK I need alittle help here to see if I am reading this right. I am trying learn a MACD chart. If I am correct (I use ameritrade the green line represents MACD the yellow line represent EMA) When the green line intersects the EMA at a dip it would be time to buy, correct? And when the green line MACD rises and intersect the yellow EMA line again the it represent time to sell. Correct? I do realize that some of the time the price is not always higher than the purchase price when the MACD is beginning to drop than when you may purchase it on the dip but most times if I am reading this right it is higher. I still don't understand what the blue field (divergence) represents. If anyone can tell me I'm on the right track it would be much appreciated. Thanks
Posts: 492 | From: new york | Registered: Jul 2005
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posted
Best way to learn is from reading a book... anything you learn in a forum take with a grain of salt because everyone has a different opinion and such. Read:
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Thanks guys for the tips. I purchased a cd on candlesticks. I was amazed at what I learned in just an hour. I feel more confident now that I can atleast understand one type of chart. I do understand the macd now I reasearched it quite abit since this post. Hopefully in I will learn quite abit more in the coming months.
Posts: 492 | From: new york | Registered: Jul 2005
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learn at least 3-4 that you "get," and follow them in concert. For example, I like the combination of "A" + "B" indicators, cuz intuitively I comprehend the "signal." Yet, you may have a different math/graphic/visual pattern-recognition... thereby preferring "C" & "D" indicators...
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I did pick up Turners book got it a couple days ago but have yet time to sit and read it. I have another dvd on Winning w/ value charts to watch. Hopefully it is as informative as the candlestick one. I do prefer the dvd's to reading call me stupid but I get lost in thought reading and can go a full page or two and not even know what I just read. The videos atleast hold my attention. I did print off the entire macd explanations link that chart walker suggested which I will read on the long drive to the inlaws today. I appreciate you guys giving me tips here. I'll be totally honest. I have be reading posts here for over a year watching some stocks buying others and I would ignorantly buy on the hype of some of those posts. Atleast now with the little I know I can see when they are introducing some of them the candlesticks are telling me it's past time to buy in. I wish I only knew this a year ago. If you have any other types of charts you reccomend please pass them on and I will do my best to learn those. Enjoy your holiday.
Posts: 492 | From: new york | Registered: Jul 2005
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