Archive for MACD
Gold Members – Special Market Report 23rd July 2010
Posted by: | CommentsThis message was sent on Friday 23rd July 2010 (pre market open) to Gold Members – those who have purchased the Liberated Stock Trader PRO Training Course
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To : Gold Members I hope your PRO training is going well.
I just thought I would give you a special market analysis – only for PRO – Gold Members
The markets are starting to look lively, we are seeing positive divergences in the key oscillators RSI, TSV, Money Flow / MoneyStream, price is moving up on increasing volume, despite the abundance of bears and bad news. The probabilities are shifting from larger downside movements to potential upside movements.
Also in Chapter 3 of your training, the seasonal cycles section shows in the last 10 years, August, October, November and December to be good months.
We might be shaping up for this.
The market is volatile at the moment, and any serious bad news might negatively swing the entire market. So keep alert and be aware of a “potential turnaround”. We are still officially in a downtrend, but the market is looking to shape up for at least a short term move upwards.
Have a great weekend
Barry
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If you would like to fast track your stock market education and get the benefits of being a gold member see the Liberated Stock Trader PRO product
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A great day in the Markets, but should we get excited?
Posted by: | CommentsWhat a day!
June 15th 2010 was a big day in the US Markets, with the Dow Jones Industrials (DJ-30), Standard & Poors 500 (SP-500) and the Russell 3000 (RUA-X) registering an average a 2.27% gain.
I mentioned in a previous market update, that we needed to look out for a change in the market signals to tell us if the downtrend was about to end. Especially we needed to look for:
- Price breaking through the 200 day moving average
- Positive divergences in the indicators
- Be careful if the S&P breaks below 1044
Well how good was the advice?
Here is an updated chart to show you the current situation. Here we will focus on the Russell 3000.
Positive Notes on the Russell 3000 chart.
- Price broke out above the 200 day moving average yesterday (dashed line)
- Price also broke out above the horizontal resistance line. The price may yet fall back to rest around this mark but not fall through it. Breaking back down below it would indicate a resumption of the downtrend, or at least a continuation of the sideways consolidation pattern.
- MACD is moving strongly positive with another new peak.
- RSI is crossing over the 14 day MA of the RSI, strongly.
Negatives Notes on the Russell 3000 chart.
- If we look at the chart on a longer term view we can see that there is the possibility of a Head and Shoulders Top forming. Be careful here! A move up to the 680 mark with a failure to break through it could constitute the final shoulder in the head and shoulder pattern. However do not forget that Volume has an important part to play in a Head and Shoulders Pattern.
- Beware the market is very volatile at the moment, it is also very sensitive to news, especially bad news. Take this into consideration when trading.
Conclusion.
This could be the start of a new short term uptrend, leading to another leg up if the 680 mark or the January 2010 high is surpassed. Now may be a good time to start buying, but be wary of a break down of price through the most recent horizontal resistance line (now a support line) at 654.
Happy trading!
To your success.
Technical Analysis, how much do you use it?
Posted by: | CommentsDear Reader
I am currenty writing a book and recording the multimedia Trader Academy Pro Training course, which will be absolutely unique. However while I am tuning the content I have a question for you ! Technical Analysis, how much of it do you actually find useful or use?
There are so many theories and tool sets out there!
- Japanese Candlesticks
- Bollinger Bands
- Envelope Channels
- Moving Averages, MACD, RSI, Stochastics
- Momentum, Rate of Change (ROC)
- Sentiment Indicators (Market Vane for example)
- Dow Theory
3. MACD – Indicator. Learn Stock Trading
Posted by: | CommentsMoving Average Convergence Divergence – Is it Important?
On the topic of MACD, I decided to reduce the amount of noise on the topic to the essential need to know information. I encourage you if you have a day to spare to do further reading on the topic, however it can be a little hard going and is good if you suffer insomnia.
MACD is an important indicator.
MACD was developed by Gerald Appel as a means of easily showing the Moving Averages of a stock in a way that could show the strength of the difference of the Moving Averages.
For example if the 10 & 20 day moving averages for a stock move away from each other as the stock is going up, this means the stock is gaining strength.
MACD is based on 3 configurable parameters Read More→
