193987
6 posts
msg #26683
- Ignore 193987 |
5/31/2003 2:55:15 PM
Hey folks,
I've always seen a certain pattern in bigcharts MACD display where the histogram is below zero, and the red line (Fast MACD EMA9) crosses over the slow line MACD (12,26) like in MXR on 5/28/03:
http://bigcharts.marketwatch.com/javachart/javachart.asp?symb=mxr
I use this filter:
MACD fast line crossed above the MACD slow line
and Average Volume(90) is above 50000
and Volume is above 50000
and close is between .01 and 5
Problem is that I would like to find these stocks a day or two before this point, when they are at the bottom of the histogram, since that is the best time to buy in. Any suggestions? Thanks in advance and good luck and good profit.
tshoe1226@hotmail.com
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sounique
6 posts
msg #26686
- Ignore sounique |
6/1/2003 5:54:03 AM
One thing I live by, "You will never buy at the bottom, and sell at the top" if you believe you can go to Vegas
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adrianf
49 posts
msg #26688
- Ignore adrianf |
6/1/2003 11:20:34 AM
You never want to trade off of one indicator. This is very risky. Remember that technical analysis only tells you what has happened. It does not predict the future. You use other indicators to increase your odds that the price will go up.
Then there is the best chart killer I know of, one bit of bad news and it's all out the window.
Try incorporating some other indicators like: volume, RSI, Money Flow, Bollinger Bands, stochastics.
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adrianf
49 posts
msg #26689
- Ignore adrianf |
6/1/2003 11:32:28 AM
Try this filter:
fetcher[Show stocks where MACD fast line(12,26) is approaching MACD slow line(12,26) from below
and Average Volume(90) is above 50000
and close is below 5
and RSI(14) is below 40
and OBV(14) is increasing the past 2 days
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thor101
2 posts
msg #26763
- Ignore thor101 |
6/6/2003 5:49:53 PM
You are absolutely correct that the condition you described can predict very strong moves in the stock. I use the following:
MACD Fast Line below -2 and MACD Fast Line is above MACD Slow Line and stock is optionable and price is between $5.00 and $25.00 and draw EMA (9) and draw EMA (18) and draw EMA (27) and draw Fast Stochastic Fast %K and draw Slow Stochastic Slow %D and draw OBV and draw Parabolic SAR
However I NEVER trade at this point it is far too risky. Instead I move the few stocks I find to the watch list (in Stock Fetcher Pro) and then check them daily. When the move is confirmed by the other indicators and particularly the EMA (9) being above the EMA (18) and the EMA (18) being above the EMA (27) and the gap between them widening for several days that is when I buy.
This often indicates a strong rally, particularly when stochastic %K and %D lines have been below 20 and moving nearly horizontally for some time (over sold) then breaking above 20. OBV will also have switched from declining to increasing and the PSAR will be below the price.
Watch for the PSAR to switch and the MACD histogram to go negative as the first sign of trouble. The sock can go sideways here and then resume its upward movement so don’t exit, just adjust your stop. Definitely exit is the EMS’s cross to the down side.
Unfortunately there is no way to program all this into Stock Fetcher so after the initial signal you must do it visually. Perhaps in a future version it will be possible to scan the watch list using a different parameter than the initial one(s). While I'm wishing, how about multiple watch lists?
Good luck and good trading,
Ray Raffurty
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