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

[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 ??

Sorry for the delayed reply. I guess the day avg price will be above 290. It would be 294.

 

[raj_jain1]

just follow price action...indicators are only wastage of time.

 

[amit.patel26]

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,
It will be worthless to talk about IOC as it has shuffled too much till now but regarding MACD it is not compulsory that MCAD will show results as per your stock movement. MACD may give relevant results in few time frames for the same stock but not in all time frames or it might not completely follow few stocks predicting false indication as exponential value makes a difference. so i would suggest not to completely depend on MACD but also look for other indicator like ATR. we can also look combine effect of MACD and RSI to take further decision for a clear picture.