Improving MACD Signals by Using Different MACD Combinations for Buying and Selling
Two MACD Combinations Are Often Better Than One
Stock prices decline at more rapid rates than they rise, so it is generally good practice to employ at least two, and perhaps even three, MACD combinations. Different combinations are useful for buying and for selling. For example, let’s review Chart 8.6.
Chart 8.6. Different MACD Combinations for Buying and Selling
Chart 8.6 illustrates how more accurate MACD buy and sell signals can often be secured by using more sensitive MACD combinations for buying purposes and less sensitive MACD combinations for selling purposes.
Chart 8.6 employs three elements new to our discussion of the MACD. First, ...