Learn how to trade using MACD

[ChartFilter]

The MACD method, developed by Gerald Appel, is a trending indicator,
telling us whether a stock is in an uptrend or a downtrend. The
direction of the long-term trend is the first assessment you should
make of any market. If it is trending up, you want to be long
(buying). If it is trending down, you want be short (selling).
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[JC]

"ChartFilter" <a...@chartfilter.com> wrote in message
news:1187287399.1...@e9g2000prf.googlegroups.com...

> The MACD method, developed by Gerald Appel, is a trending indicator,
> telling us whether a stock is in an uptrend or a downtrend.

I still have his book "Winning Stock Selection Systems" and considered it
the Bible of stock market knowledge. About a year ago, maybe a little less,
I came across "New Concepts in Technical Trading Systems" by J. Welles
Wilder Jr., who took Appels' theories a few steps further. I quote from page
35, "Directional movement is the most fascinating concept I have studied.
Defining it is a little like chasing the end of a rainbow...you can see it,
you know it's there, but the closer you get to it the more elusive it
becomes." But, he seems to have come as close as anyone ever has. I notice
now that MarketNews uses a chart that reflects Wilders formula. I have found
it to be most profitable although I do not use it as a primary system as
much as a backup sort of confirmation one.

Those two books are the only ones of the many, many books I have read on
stock market theory.

[ChartFilter]

I also like the ADX/DMI and have those same books. I found that ADX/
DMI can also give some great screening results.
Here is our screening with ADX/DMI article, I hope you like this one
as well: http://www.chartfilter.com/screenexamples/adxsignal.htm

We have quite a few more articles about ADX/DMI as well as some using
complementary indicators: http://www.chartfilter.com/education/indicators/11.htm

Thanks for your comments and post!.

[steve]

Profit related books are waste of time. People selling such books are
profiting from book sales. Seminar people specialize in giving
seminars, etc. You can no more learn actual money-making secrets from
others than you can learn microsoft secrets from microsoft. Those that
actually have working formulas have no need nor interest to sell them
to strangers. Friends and family members, there's a chance perhaps.

And no conventional indicators hold up over time. I've backtested the
most popular TA indicators. They eventually result in a net zero gain
unfortunately.
MACD was the best. There were a couple formations that held up.
"However," these formations occured far less than 0.001% of the time!
So in order to use MACD faithfully, you either had to manipulate the
data to "force the formations to occur as near to 100% of the time as
possible .. or wait five years to make a single trade.

GL