O'Reilly logo

Technical Analysis: Power Tools for Active Investors by Gerald Appel

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

MACD and the Four Stages of the Market Cycle

As a final note regarding the MACD, we might observe that its patterns, which are relatively smooth compared to most market indicators, provide suggestions relating to the four stages of market cycles. Chart 8.22 illustrates the related concepts.

Chart 8.22. New York Stock Exchange Index: 2002 MACD and the Four Stages of the Market Cycle

The smooth patterns of the MACD frequently provide clear indications of the four stages of the market cycle.

As we know, the accumulation of long positions takes place generally during the latter half of Stage 1 or at the onset of Stage 2. Positions ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required