Understanding MACD (Part 4)
05/01/2008 12:00 am EST
Moving on with MACD, look at the graphic below:
Consider the following strategy: watch the histogram for points where no lines or very small lines are drawn (indicating a cross), then look for strong lines up or down from that point. If after a cross, the histogram begins to plot lines at a sharp angle up or down, such should be considered an indication of a strong directional change in the market.
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