Saturday, May 19, 2007

they occur at relatively overbought/oversold levels

Add indicator Macd: settings

Moving Average Convergence/Divergence is the next trend-following dynamic indicator. It indicates the
correlation between two price moving averages.
The Moving Average Convergence/Divergence Technical Indicator is the difference between a 26-period
and 12-period Exponential Moving Average (EMA). In order to clearly show buy/sell opportunities, a socalled
signal line (9-period indicators` moving average) is plotted on the MACD chart.The MACD proves most effective in wide-swinging trading markets. There are three popular ways to use
the Moving Average Convergence/Divergence: crossovers, overbought/oversold conditions, and
divergences.

CrossoversThe basic MACD trading rule is to sell when the MACD falls below its signal line. Similarly, a buy signal
occurs when the Moving Average Convergence/Divergence rises above its signal line. It is also popular to
buy/sell when the MACD goes above/below zero.

Overbought/oversold conditions
The MACD is also useful as an overbought/oversold indicator. When the shorter moving average pulls
away dramatically from the longer moving average (i.e., the MACD rises), it is likely that the security price
is overextending and will soon return to more realistic levels.

Divergence
An indication that an end to the current trend may be near occurs when the MACD diverges from the
security. A bullish divergence occurs when the Moving Average Convergence/Divergence indicator is
making new highs while prices fail to reach new highs. A bearish divergence occurs when the MACD is
making new lows while prices fail to reach new lows. Both of these divergences are most significant when
they occur at relatively overbought/oversold levels.
1) Add indicator Macd: settings - 12-26-9
2) Add Parabolic SAR: settings -accelerate 0.020 - maximum 2.0
3) Add Bollinger Bands: setting - MA Type simple period 20 multiple 2.0
4) Add 2 Exponential moving average one is period 5 line colour green the other is period 20 line
colour red
5) Aroon: settings – Period 20
6) Zoom in on chart also to make it east to read 125% on marketiva

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