Comment on Technical Analysis - Intro
commented on
12 Dec 2017, 09:11 PM
Hi Everyone, I have been studying TA from Zeordha’s Varsity section.
Under indicators (MACD) section, it says, IF SIGNAL (SMA 9) LINE IS ABOVE THE MACD (12-26), ONE SHOULD TAKE LONG POSITION AND IF SIGNAL LINE IS BELOW MACD, ONE SHOULD TAKE SHORT POSITION.”
When I matched the SIGNAL LINE AND MACD CROSSOVER, it did not coincide with the price behavior. That is, Signal line above MACD line but stock was not in uptrend. It moved sideways. I understand that MACD is a trend indicator but how do I know that the crossover will result in trend or whipsaws.
Please help