Moving Average Convergence Divergence ( MACD ) Charts

Written by Steven T. Ng


Continued from page 1

The 9-Day EMA acts as a signal line or trigger line forrepparttar MACD. Whenrepparttar 112089 MACD line crosses aboverepparttar 112090 9-Day EMA from below, it indicates thatrepparttar 112091 downtrend is over and a new uptrend is forming. Time to consider bullish strategies. Conversely, whenrepparttar 112092 MACD line drops below its 9-Day EMA, a new downtrend is forming and its time to implement bearish strategies.

THE MACD HISTOGRAM So far, we have coveredrepparttar 112093 most simple form of interpretingrepparttar 112094 MACD charts. We now look atrepparttar 112095 MACD histogram. Just asrepparttar 112096 MACD line isrepparttar 112097 difference betweenrepparttar 112098 12-Day and 26-Day EMA,repparttar 112099 MACD histogram is basicallyrepparttar 112100 difference betweenrepparttar 112101 MACD line and its 9-Day EMA.

So whenrepparttar 112102 MACD line crosses above its 9-Day EMA,repparttar 112103 MACD histogram will cross above zero. In order words, a bullish signal is obtained whenrepparttar 112104 MACD histogram crosses above zero, and a bearish signal is obtained when it crosses below zero.

POSITIVE AND NEGATIVE DIVERGENCE

The MACD histogram forms valleys and peaks. Sometimes, multiple peaks are formed, with each subsequent peak becoming lower and lower. These progressively lower peaks constitue what is known as a negative divergence. A negative divergence onrepparttar 112105 MACD histogram is an indication thatrepparttar 112106 current uptrend might reverse inrepparttar 112107 near future. This could happen even thoughrepparttar 112108 actual stock price seems to be making higher peaks inrepparttar 112109 chart. Basically,repparttar 112110 MACD histogram negative divergence is a warning thatrepparttar 112111 stock might turn down soon.

Similarly,repparttar 112112 positive divergence onrepparttar 112113 MACD histogram predictsrepparttar 112114 subsequent uptrend. However, sometimes these divergences can create false alarms. If we follow these signals, we could have bought into a downtrend.

As such, I would like to remind you that individual indicators such asrepparttar 112115 Moving Average Convergence Divergence (MACD) charts should not be used on their own, but rather with one or two additional indicators of different types, in order to confirm any signals and prevent false alarms.

If you would like to know more aboutrepparttar 112116 MACD with graphical examples, do visit:

http://www.option-trading-guide.com/macd.html

Steven is the webmaster of http://www.option-trading-guide.com If you would like to learn more about Option Trading or Technical Analysis, do visit for various strategies and resources to help your stock market investments.


Credit Counseling Questions.

Written by David Wilding


Continued from page 1
won’’t do you much good. To protect yourself, ask for a list (in writing) of any of your creditors they have worked with inrepparttar past. Will my creditors be paid on time each month? Two things come into play here. What arerepparttar 112088 due dates of each creditor and when duringrepparttar 112089 month do you get paid? Nothing defeatsrepparttar 112090 purpose faster than paying a creditor late, after you have set up a new payment schedule. Some credit counseling services use a set date each month to make payments fromrepparttar 112091 money you have given them. If they don’’t have your creditors changerepparttar 112092 due date you could be socked with late fees each month. Find a service that adjustsrepparttar 112093 due dates of your bills to work aroundrepparttar 112094 days you get paid. How do I pay you each month? The credit counselor can’’t pay your creditors until you pay them each month. Will they remove money, each month, from your account with an electronic transfer or are you required to send them a guaranteed check or money order? You want to make it as easy as possible for this plan to work. Look for a service that will withdraw funds from your account automatically each month. When and how often will I get statements of my accounts? Just because you have turned over a portion of your financial life to someone else to run, does not mean you don’’t need to keep track of what is going on. Your statements should break down your payments so you can see whererepparttar 112095 money is going. How much is going to interest, how much torepparttar 112096 principal balances, and how much is being paid torepparttar 112097 credit counseling service. Who can I call? When you have a problem or question can you speak with someone onrepparttar 112098 phone? Are you able to speak torepparttar 112099 same counselor each time? If not, how long does it take to return phone calls? Do this up front. Make sure you can live withrepparttar 112100 answers you receive. Then testrepparttar 112101 service to see if they live up to what they have said. Check their service out before you sign onrepparttar 112102 bottom line. If you find that you can’’t get questions answered or telephone calls returned look for another service. Going through credit counseling is stressful enough without any added problems. These questions will give you a good idea what kind of service you have found. There are other questions you may ask. If you think of any do not hesitate to ask and don’’t stop asking until you getrepparttar 112103 answers you need. It is your money.

David Wilding has for the past ten year worked with groups and individuals to rid themselves of debt. Visit his website http://www.debtattack.com for ideas, tools, and strategies to live debt free.


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