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Lionel Issen
lissen@xxxxxxxxxxxxxx
----- Original Message -----
From: "Tom Strickland" <tstrickland@xxxxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Saturday, February 03, 2001 11:58 AM
Subject: Trending vs. Consolidating Markets
> There has been a lot of discussion here lately about determining if the
> market is trending or consolidating. Most of the talk has been about the
> ADX and the VHF. Let me suggest an alternate way of making this
> determination. Take a look at the MACD, and divide it into four zones as
> follows:
>
> Zone 1: MACD>0 and MACD>MOV(MACD,9,E)
>
> Zone 2: MACD>0 and MACD<MOV(MACD,9,E)
>
> Zone 3: MACD<0 and MACD<MOV(MACD,9,E)
>
> Zone 4: MACD<0 and MACD>MOV(MACD,9,E)
>
> Now plot the MACD, ADX, and VHF for a given security. You will note that
> the ADX and the VHF are rising when the MACD is in Zones 1 or 3, and they
> will be declining when it is in Zones 2 or 4. Thus, MACD can tell you
> whether the market is trending or consolidating, AND ALSO the direction if
> it is trending. Check it out and see if you agree.
>
> There will be no charge for this profound bit of information I am giving
> you. :-)
>
> Tom Strickland
>
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