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Help answer this question below.
Sounds like hocus pocus to me.
But if the short term moving average has fallen below the long term moving average then the stock is suffering.
Maybe general market conditions, maybe the stock is undervalued, maybe its going bust, maybe a buying opportunity, maybe an opportunity to lose your shirt.
Who knows? takes a lot more research than the moving average or MACD. If it didn't the statistical share tippers wouldn't need to work.
I will venture out a little and that is to say that statistics work only on the broad stage. You may have statistically a less than 1% chance of being shot in the street but to some poor devil thats a 100% certainty.
So you could say you have a 99.999% chance of walking down one street on one occasion and surviving. But again some day some poor devil will have no chance.
So you need to spread your risk if your working with statistics.
After all thats what statistics are, broad measures of a population.
How much money do trades cost at etrade?
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You're reading Yahoo!'s 20 day moving average has fallen below it's 50 day moving average, yet it appears to be gathering momentum. When going between the MACD and the moving average, which holds more weight in determining a stock's positive outcome?
Comments
Okay, so you can't tell what a stock might do with a moving average and MACD chart. But can't the moving average, MACD chart, and the absence of bad news (and maybe the presence of good news) make the investment of any given stock more worth a risk than not?
That's a far better answer than the one I was given by the last guy. Thanks.
by Adz3r0 on August 26th, 2009
Yes its an indicator, just that on its own, i'm not sure what of.
Even the professionals struggle with stock picking, very few beat the market.
Stock timing doesn't work that good either.
All that works on the evidence I accept, is the broad brush.
I think market timing works but thats a slow process. You have to buy and sell the market and I'm talking years not months or days.
Cut your costs, don't pay fancy fee's and charges, keep it broad and simple. But then I don't gamble.
by puzzled on August 26th, 2009
Just a footnote
Market timing works because it isn't distorted by too big a following. If the following gets big enough the market will become distorted and you may as well put money on the GG's.
by puzzled on August 26th, 2009