Quote:
Originally Posted by Gunnski
On your chart where is says MACD in the bottom window.
-MACD (12, 26,9) are your settings for MACD. -72.925 is the darker line, which is the 12 day setting (fast line). The -0.337 in red is your 26 day line (slow line). The -72.588 in blue is the Histogram often referred to as mountains or peaks. The peaks run along your 0line in the graph. When they are peaking up they are above your 0 line. Positive.
As is your chart the are peaking down below the zero line, consistent with the MACD lines. You can see the negative cross over when the Thick dark line pierced the slower red line and the darker line continued down. One tool telling you maybe time to SELL.
I sugesst setting your MACD to 8, 17,9.
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Thanks you so much, now I understand how to read MACD chart. One more thing, for Stochastics chart do I use the slow one as Phil suggested in his book and set it to 14,5 ?
