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MACD
StockCiphering.com calculates daily 12-26-9 MACD figures for all stocks in the
database and makes use of the MACD behavior in many of its stock screens.
MACD (Moving Average Convergence Divergence) is a technical indicator developed
by Gerald Appel. It is a trend-following indicator that makes use of 2 exponential
moving averages of stock prices. The longer moving average (26-day EMA) is subtracted
from the shorter moving average (12-day EMA) to plot a line that oscillates above
and below zero. This Zeroline Crossover indicates bullishness when crossing above the line
and bearishness when crossing below the line. Many traders use these crossovers
as buy and sell signals respectively.
In addition, a 9-day EMA of this MACD Line is also plotted as a Signal Line.
A Moving Average Crossover occurs when the MACD Line crosses above (bullish) or
below (bearish) the 9-day EMA Signal Line.
Please visit StockCharts.com for an
excellent in-depth discussion on MACD.
StockCiphering.com presents a stock screen for bullish MACD Crossovers called
Born-Again Bulls. A table is presented for both
Zeroline Crossovers and Moving Average Crossovers; however, the only bullish Moving
Average Crossovers presented are those that occur ABOVE the Zeroline. In our
experience, bullish Crossovers that occur BELOW the Zeroline are not always
reliable and in our view it is preferable to wait for a Zeroline Crossover into
bullish territory.
Conversely, the Dead-Again Bears screen presents
MACD crossovers to the bearish direction.
Sites that present MACD Crossover signals are a dime a dozen. That's why we go
a step beyond and also produce screens
(called Potential Bulls and
Potential Bears) that present stocks that are
likely to experience an MACD crossover within the next day or two, so you
can get a jump on things.
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