Forum Archive Index - March 2002

[Phaedrus <Phaedrus@techemail.com>]

 THL has been a reasonably good trading stock. These are characterised by good 
clear up and down trends of reasonable length, with clear turning points 
between them. The chart below illustrates how different trend indicators give 
the same signals, differing only in their timeliness.
 The MACD indicator (Moving Average Convergence Divergence) plotted at the top 
of the chart gives the same buy and sell signals as the trendline breaks, one 
to six days later. The MACD is derived from moving averages of prices, making 
it slower to respond - it is a lagging indicator.
 The parabolic Stop and Reverse indicator similarly gives the same signals as 
the trendline breaks, up to 12 days later. These buy/sell points are marked 
with magenta dots. The SAR, like the MACD, is a lagging indicator.  
 The trendline break buy points are marked by green dots, sell points by red 
dots. You can see why it is my favourite trend indicator and charting tool.

                       Phaedrus.

_____________________________________________________________
Are you a Techie? Get Your Free Tech Email Address Now! Visit 
http://www.TechEmail.com

_____________________________________________________________
You deserve a better email address! Get personalized email @yourname
or @yourcompany from Everyone.net --> http://www.everyone.net?tag

----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/