Co-brand Partnerships

award-5.gif (6517 bytes)
Vote for Us

topsite.gif (1668 bytes)

webfifty.gif (6027 bytes)

 


 
drop_center.gif (2753 bytes)


wpe1.jpg (2095 bytes)


FREE EMAIL
Email Login
Password
New Users Sign Up!
 
NEWS SEARCH
WEB DIRECTORY
WEB SEARCH
 CITY GUIDES
search by:
 WEATHER

Current Weather
Enter Your City, State, or Zipcode:

   

MASTERING
THE TRADE

ORIGINAL, INTERACTIVE SEMINAR ON TRADING USING
TECHNICAL ANALYSIS
 

 
EARNINGS ESTIMATES

Enter Symbol

U.S. QUOTES

Enter Symbol:

U.S. CHARTS

Enter Symbol:

TECHNICAL OPINION

Enter Symbol:

CANADIAN CHARTS

Enter Symbol


 SEC FILINGS

Search For:
 

Company Name
Ticker Symbol

 BROKER RESEARCH
Exclusive Broker

Research
Enter Ticker

 

ARCHIVE:    JUNE 1999-MARCH 2000  

An InvestorLinks article
distributed every market day.

Siliconix Inc  (NASDAQ: SILI)
Market Call™ for April 3, 2000
Contributed by Mark Seleznov, TrendTrader.com.

The purpose of this Market Call section is to educate readers in technical analysis patterns and indicators. As with all investment information, you need to research information and consult your financial advisor before initiating any strategies that are contained in Market Call.

Also, you must realize that as with all trading strategies, opinions can change quickly depending on market conditions and developments.

This column tries to present historical examples, potential set ups, and examples of entry and exit strategies.

  • MACD “Moving Average Convergence/Divergence”

    The MACD is a trend following momentum indicator that shows the relationship between three moving averages of prices.

    This method can be used for any time frame. It could be 5 minute bars, 15 minutes bars or daily bars. Many traders will also trade in multiple time frames using a longer time frame for trend, and the shorter period for entry and exit.

    We are looking at 60-minute charts below.

    The MACD is the difference between a 26-period and 12-period exponential moving average. A 9 period exponential moving average, called the “signal” (or “trigger”) line is plotted on top of the MACD to show buy/sell opportunities. On the charts below, the MACD line is the green colored line, and the trailing, slower moving line is the signal line. Some technical analysis programs will show the MACD as a histogram bar. There are three popular ways to use the MACD: crossovers, overbought/oversold conditions, and divergences.

    The most common use is as a crossover method. Using this interpretation, the trading rule is to sell when the MACD falls below its signal line. Similarly, a buy signal occurs when the MACD rises above its signal line. It is also popular to buy/sell when the MACD goes above/below zero.

    Some traders will use MACD as an overbought and oversold indicator. When using the indicator in this manner, when the shorter moving average pulls away dramatically from the longer moving average (i.e., the MACD rises), it is likely that the security price is overextending and will soon return to more realistic levels. MACD overbought and oversold conditions vary from security to security.

    The other way some traders use MACD is to spot divergences from an anticipated movement. Since there are no indicators or patterns that work all the time, reactions against the anticipated move can signal a major move. A bearish divergence occurs when the MACD is making new lows while prices fail to reach new lows. A bullish divergence occurs when the MACD is making new highs while prices fail to reach new highs. Both of these divergences are most significant when they occur at relatively overbought/oversold levels.

  • Let’s look at Siliconix Inc. (NASDAQ: SILI).

    I hope all readers are using stops regardless of the side of the market you are trading.

    I am not a bottom picker, however there are strategies to use to get a trader back into a stock that they were stopped out of days ago.

    On Friday, March 31, 2000 we were looking at a similar pattern in EMLX. It did not work!

    We were stopped out and the stop saved us from real disaster. Does that mean that MACD does not work? No, it only means MACD does not work all the time. In fact, there are no indicators or patterns that work all the time. I found MACD a reliable indicator and many issues on trading certainly reflect the time frame used.

    Today’s Market Call is on another volatile stock that is signaling a MACD buy, however if you look at it on a daily basis is in a definite down trend. But for Day Trading, we are using hourly bars for our trading. A longer-term trader would not be following this advice.

    After a decline from the last MACD sell signal on March 24, 2000 at 124 �, SILI is now flashed a MACD Buy signal Friday.

    I would Buy SILI on any up or unchanged open on Monday.

    If the stock gaps down, do NOT take the trade.

    As we see often, a stop is critical and I would place my stop 91.

  • Chart courtesy of
     


    Interested in adding Market Call to your website?
    Click here for details: Market Call Information

    Mark A. Seleznov is a General Securities Principal and Managing Partner of Trend Trader, LLC, a NASD, SIPC broker/dealer firm located in Scottsdale, Arizona. A professional trader for over 25 years, Mark was a Market Maker on the Philadelphia Stock Exchange, a Retail Registered Representative, and futures trader. Mark is an author and recognized expert in equity Day Trading. He conducts seminars in Equity Day Trading and offers his firm traders training and support. If his firm holds any positions in the public companies he writes about, it will be noted at the bottom of his article.

    Market Calls is a daily syndicated column on trading by Mark A. Seleznov, Managing Partner of Trend Trader, LLC. For information on obtaining Market Calls for your web site, newspapers, or publication, contact
    Trend Trader, LLC at 602-948-1146

    Disclaimer: Trading in securities may not be suitable for all individuals. Consult your broker or other professional to determine your suitability. This is not an offer to buy or sell securities. The advice given above is of a general nature and should not be taken as a recommendation to buy or sell the referenced security.

     
    Search for it at the TulipSearch Open Directory
    Investment Bookstore Investment Newsstand Market Mavens Report

    TULIPS AND BEARS NETWORK SITES

     

    FINANCE
    Tulips and Bears
    Contrarian Investing.com
    Internet Stock Talk
    Traders Message Boards
    Traders Press Bookstore

    NEWS AND INFORMATION
    TulipsWeather
    Freewarestop.com
    TulipsMail
    TulipsEspa�ol
    TulipSearch
    TulipNews
    TulipCards
    AllMusicSearch.com
    City Guides
    Travel Center
    Bargain Bloodhound...coming soon

    WEBMASTER TOOLS

    TulipHost
    BecomeAnAffiliate.com
    TulipDomains
    GoSurfTo
    TulipStats
    ...coming soon
    TulipTools...coming soon

    Questions or Comments? Contact Us

    Copyright � 1998-2000 Tulips and Bears LLC.
    All Rights Reserved.  Republication of this material,
    including posting to message boards or news groups,
    without the prior written consent of Tulips and Bears LLC
    is strictly prohibited.


    Last modified: March 17, 2001

    Published By Tulips and Bears LLC