Forum Archive Index - April 2001

[Phaedrus <Phaedrus@techemail.com>]

Ash,
     MACD stands for Moving Average Convergence/ Divergence. It is a trending 
indicator, so it works best only if a stock is trending up or down (not 
in a trading range) It is calculated by subtracting a 26 day moving average 
from a 12 day moving average, and plotting this as a solid line. This is 
overlaid by a 9 day moving average of the 26/12 difference,plotted as a dotted 
line. At its simplest, a buy signal is given when the solid line crosses up 
through the dotted line, and a sell signal is given when it crosses back.
  The best way to learn about technical analysis, in my opinion, is to buy a 
good charting/analysis  program, and teach yourself. Metastock is probably 
the most widely used, and costs about $1000. There is a wealth of information 
on the net on this topic, and there are many textbooks available. Join STANZ.
  
  Fosters appears to have found support at 480 (Stocks often find support at a 
level that used to be resistance) Oscillators are at Oversold levels and are 
turning up, there is a volume climax, and a pivot point reversal has formed. 
This all adds up to a Short-term Buy. More cautious investors would most likely 
wait for some more upward movement before acting. I bought this morning at 486.
                               Phaedrus



 
 
 
 


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