Stock made a new high an din uptrend, but MACD is low

mlg

New Member
#1
Hi,

For lat 2-3 days, IOC is in uptrend and made a new high at 385. But its MACD is at 4.75. But IOC made a high at 386 on 8th April 2015. At that time, MACD was at 8.66. As per my knowledge, if stock makes a new high and MACD is not making a new high means, the uptrend is going to over in a short time. But IOC is still in uptrend. Could anybody please clarify this? Thanks in advance.

Posted the image here for reference, http://postimg.org/image/5rjfdmpzp/

- mlg
 

copypasteaee

Humbled by Markets
#2
Hi,

For lat 2-3 days, IOC is in uptrend and made a new high at 385. But its MACD is at 4.75. But IOC made a high at 386 on 8th April 2015. At that time, MACD was at 8.66. As per my knowledge, if stock makes a new high and MACD is not making a new high means, the uptrend is going to over in a short time. But IOC is still in uptrend. Could anybody please clarify this? Thanks in advance.

Posted the image here for reference, http://postimg.org/image/5rjfdmpzp/

- mlg


There is no image
 

jahan

Well-Known Member
#3
Hi,

For lat 2-3 days, IOC is in uptrend and made a new high at 385. But its MACD is at 4.75. But IOC made a high at 386 on 8th April 2015. At that time, MACD was at 8.66. As per my knowledge, if stock makes a new high and MACD is not making a new high means, the uptrend is going to over in a short time. But IOC is still in uptrend. Could anybody please clarify this? Thanks in advance.

Posted the image here for reference, http://postimg.org/image/5rjfdmpzp/

- mlg
Hello,

The usage of MACD is different from trader to trader....to me....i look for recent swing highs in respect of Macd swings.. which clearly shows higher-highs and higher-lows on both Macd and price(in ur image)...means uptrend...to me recent swings are important......i extensively use Macd as my exit indicator in one of my methods.

Regards
 

jahan

Well-Known Member
#5
Thanks a lot Jahan. And Could you please explain how to use MACD as exit indicator?
Hello,

here u go....change Macd parametre's to 24,52,18(doubling default values)..if the the trade goes in ur favour its extract most of the move...i think i already explained about this somewhere in this forum...i can't remember where,..... i explained,.... if u have time pls search...

Regards,
 

PUCHU_2500

Well-Known Member
#6
Hi,

For lat 2-3 days, IOC is in uptrend and made a new high at 385. But its MACD is at 4.75. But IOC made a high at 386 on 8th April 2015. At that time, MACD was at 8.66. As per my knowledge, if stock makes a new high and MACD is not making a new high means, the uptrend is going to over in a short time. But IOC is still in uptrend. Could anybody please clarify this? Thanks in advance.

Posted the image here for reference, http://postimg.org/image/5rjfdmpzp/

- mlg
to embed your chart image on TJ massage board click my signature how to upload......it is easy and quick.....
 

mastermind007

Well-Known Member
#7
Hi,

For lat 2-3 days, IOC is in uptrend and made a new high at 385. But its MACD is at 4.75. But IOC made a high at 386 on 8th April 2015. At that time, MACD was at 8.66. As per my knowledge, if stock makes a new high and MACD is not making a new high means, the uptrend is going to over in a short time. But IOC is still in uptrend. Could anybody please clarify this? Thanks in advance.

Posted the image here for reference, http://postimg.org/image/5rjfdmpzp/

- mlg
As you are already aware, MACD is a difference between two averages.

If the difference is larger, averages will plot farther as compared to when difference is low. You can verify this by plotting EMA of 12 and 26 on the chart and you will realize that 26 MA was sluggish in April but not so in June.
Also plot MACD's histogram by itself...

All that means is that IOC is heading to be bullish stock although it may encounter some resistance at 385 level. A
 
#8
stop looking at indicators all indicators are derived from price, better to spend time on understanding price patterns than indicators, indicators only give u a hint but price has to confirm
 
#9
stop looking at indicators all indicators are derived from price, better to spend time on understanding price patterns than indicators, indicators only give u a hint but price has to confirm
Hello @mark_sas30
Can you help me where can I get good info on understanding price patterns?

Thanks.
 

mohan.sic

Well-Known Member
#10
Hi,

For lat 2-3 days, IOC is in uptrend and made a new high at 385. But its MACD is at 4.75. But IOC made a high at 386 on 8th April 2015. At that time, MACD was at 8.66. As per my knowledge, if stock makes a new high and MACD is not making a new high means, the uptrend is going to over in a short time. But IOC is still in uptrend. Could anybody please clarify this? Thanks in advance.

Posted the image here for reference, http://postimg.org/image/5rjfdmpzp/

- mlg
mlg,

1) What is the indicator, its formula and what makes the indicator move ?

These are three base things any trader MUST understand before using them.

If you do not spare time to understand this, your boubts keep comming back to you very often.

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@ 12 pm - Price of a stock is at 300 and Days Avg price of the stock is at 290

@ 1 pm - Price of the stock came down to 292 ( gradual fall from 300 ). Now what will be the Days Average price? Will it be above 290 or below ??
 

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