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

The Third Step: Establish the Direction and Strength of the Current Intermediate Trend and Try to Project the Time and Place of the Next Intermediate-Term Reversal Area

Useful tools for this purpose include these:

  • MACD (Chapter 8): Maintain weekly and daily MACD calculations. Look for trends in MACD, positive and negative divergences, slopes of rises and declines in MACD, and particularly trendline breaks in the slopes of moving average lines. Slow MACD is very useful in this regard.

  • Moving average trading channels (Chapter 9): These work well in conjunction with MACD and also on their own for intermediate trend as well as shorter-term and longer-term trend analysis.

  • Rate of change indicators: Ten-day rate of change measurements, 21-day rate of ...

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