MACD as a trading strategy

28th Feb '23 by CamRaid

1 comment 474 reads

I have noticed that when the MACD goes above the signal line there tend to be an increase in the share price and vice versa.

I have been mulling this for some time and decided to put it in to practice.

Yesterday is dipped below the signal line which by my reckoning above is a sell signal. I sold at 198.33

Today I can buy back at 185.3 which is a 6.5% discount to what I sold at.

I am really tempted just to transact as I am a long term holder and plan to be. However, I am going to hang in and test my theory. As such I will wait until the MACD rises above the signal line to buy back.

Watch this space.

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Snowbum

28th Feb '23

Suggest you don’t use this in isolation, you need more than one confluent signal to weed out the best ones to act upon. A quick look at the chart for SDI suggests a wedge breakout that is coming back for a retest, I’d be looking at the 164-175p as the price area of interest here. If using the MACD, you’ll also want to take note of what information the histogram is providing.

MACD as a trading strategy

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CamRaid

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