The standard interpretation is to buy when the MACD line crosses up through the signal line, or sell when it crosses down through the signal line. The upwards move is called a bullish crossover and the downwards move a bearish crossover. Respectively, they indicate that the trend in the stock is about to accelerate in the direction of the crossover. The histogram shows when a crossing occurs. Since the histogram is the difference between the MACD line and the signal line, when they cross there is no difference between them.
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Gerald Appel Introduction Mr. Appel is a professional money manager, directing the management of Investor assets for more than thirty-five years. Besides being a professional investment advisor, he has authored or co-authored more than fifteen books, as well as numerous articles, relating to investment strategies.
He is a recognized expert in the field of technical market analysis. MACD is appreciated by traders the world over for its simplicity and flexibility because it can be used either as a trend or momentum indicator.
Appel is one of the most prolific inventors of technical trading tools, many of which have become popular worldwide. The MACD is used for charting by investors and money managers alike, on major financial websites and in technical analysis software packages.
Professional Qualifications Mr. He is a former practicing psychoanalyst, and an award-winning photographer. Companies and Work Involvement In , Gerald Appel founded Signalert, a registered investment advisory company which handles a half-billion dollars of client assets. Signalert also publishes the technical newsletter Systems and Forecasts, highly rated by The Hubert Financial Digest and by Timer Digest for its performance in market timing.
He has been managing discretionary client accounts for more than thirty years. His investment style focuses on protecting assets and managing risk.
Portfolios are structured to meet the needs of individual investors. His background as a practicing psychotherapist for many years enables him to care for clients with patience and concern.
Books, Articles, T. Martin E. He has also produced and appeared in a number of videotapes related to technical investment strategies. Appel has presented at a number of seminars within the United States and abroad, and has appeared on "Wall Street Week" with Louis Rukeyser and is a frequent guest on other television programs on the financial news networks and elsewhere. Along with his son Dr.
This semi-monthly publication has been recognized on the Forbes Honor Roll. Marvin Appel Dr. Appel to present his economic and investment outlook. Conclusion Mr. Appel remains actively involved in his work. He remains actively involved in the management of Appel Asset Management Corporation as well.
MACD (Moving Average Convergence/Divergence Oscillator)
The MACD turns two trend-following indicators, moving averages , into a momentum oscillator by subtracting the longer moving average from the shorter one. As a result, the MACD offers the best of both worlds: trend following and momentum. The MACD fluctuates above and below the zero line as the moving averages converge, cross and diverge. Traders can look for signal line crossovers, centerline crossovers and divergences to generate signals. Because the MACD is unbounded, it is not particularly useful for identifying overbought and oversold levels. Closing prices are used for these moving averages.
Gerald B. Appel
It is based on the moving average, which is simply an average of market prices over a set duration of time. The MACD subtracts one moving average from another, then creates a moving average of this result, called a "signal line. Open your charting software and view any chart you wish. Click the button or menu within the program for selecting technical indicators. The exact location of this operation varies between software vendors, but will almost always be titled "indicators," "studies," "oscillators" or "analysis. Select the MACD indicator from the list of indicators available to add to the chart. Configure the three parameters for the MACD on this screen that appear after you click to add the indicator.
How to Select MACD Parameters
Gerald Appel Introduction Mr. Appel is a professional money manager, directing the management of Investor assets for more than thirty-five years. Besides being a professional investment advisor, he has authored or co-authored more than fifteen books, as well as numerous articles, relating to investment strategies. He is a recognized expert in the field of technical market analysis.