HI all,
I have developed this system by using 3 MACD indicators for swing trading.
"Three different MACD indicators"
1st. indicator - MACD (8,50,1)
2nd. indicator - MACD (50,200,1)
3rd. indicator - MACD (3,10,1)
If 1st. indicator is below "0" value, that means 8 day ema below 50 day ema,
bearish for intermediate term.
If 2nd. indicator is below "0" value, alongwith the 1st. indicator, bearish for long term.
Now, as 1st. indicator is rising above "0" value, but 2nd. indicator is below "0"
value, we must be cautious before entering the market. If both are rising above "0" values, we can go long.
Also, if both the indicators are above the "0" value for a long time, and the
2nd. indicator is trending more than the 1st. indicator (we can do this by visual inspection), then we can expect correction any time. Therefore,
be cautious in such scenario before going long.
If 3rd. indicator is below "0" value, that means the stock is oversold and when it crosses just above "0" value, we can go long.
But i advise to use 3rd. indicator alongwith other "oscillators" like RSI,
SLOW STOCH or WILL'SR%. This will give a better idea.
If it is used alongwith, say, SLOW STOCH, and if both confirm "oversold" level, then we are sure about our method.
I have attached three charts below. I am still finetuning it. Suggestions will
be appreciated. Credit also goes to VVONTERU for guiding me in this.
Regards,
Sonu M.
I have developed this system by using 3 MACD indicators for swing trading.
"Three different MACD indicators"
1st. indicator - MACD (8,50,1)
2nd. indicator - MACD (50,200,1)
3rd. indicator - MACD (3,10,1)
If 1st. indicator is below "0" value, that means 8 day ema below 50 day ema,
bearish for intermediate term.
If 2nd. indicator is below "0" value, alongwith the 1st. indicator, bearish for long term.
Now, as 1st. indicator is rising above "0" value, but 2nd. indicator is below "0"
value, we must be cautious before entering the market. If both are rising above "0" values, we can go long.
Also, if both the indicators are above the "0" value for a long time, and the
2nd. indicator is trending more than the 1st. indicator (we can do this by visual inspection), then we can expect correction any time. Therefore,
be cautious in such scenario before going long.
If 3rd. indicator is below "0" value, that means the stock is oversold and when it crosses just above "0" value, we can go long.
But i advise to use 3rd. indicator alongwith other "oscillators" like RSI,
SLOW STOCH or WILL'SR%. This will give a better idea.
If it is used alongwith, say, SLOW STOCH, and if both confirm "oversold" level, then we are sure about our method.
I have attached three charts below. I am still finetuning it. Suggestions will
be appreciated. Credit also goes to VVONTERU for guiding me in this.
Regards,
Sonu M.
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