Dow Jones index drop almost 1000 point from the last 10 trading days. This is the biggest drop and bear market for the entire year 2007. Many people lost the entire year profit in just one single week. Wow, that's a really bloody market! My positions also get hurt in the last few days, especially for the purchase I made in last few weeks when the market was peak. Anytime I make a mistake or bad move in the stock market. I like to go back and study what went wrong and what could I do next time. Over the last weeks, I spent a lot of time to learn different kind of technical indicator and check the validity of them. For example, if the indicator is correct, it should have told me to stay out the market BEFORE the crash. While most indicator fail to indicate, I do find one particular impressive one that I find useful to indicate bear market. That is MACD. Moving average convergence divergence. I encourage you to check out this interesting indicator to keep track of the market so you can learn to STAY OUT the market when bear is coming. When you Google MACD, you can find great info on the net. Whenever divergence becomes negative, that's the signal to stay out!
Tuesday, November 13, 2007
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1 comment:
How do you combine the MACD with William R and Candle stick?
Different indicators make me quite confused.
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