macd users.

[ampris2000]

hi,
is the macd a better way to look at moving average crossovers?

problem:
on any time frame chart, the ma 20 may be above the ma 50. but if i put in the macd the numbers 20,50,10 there has already been a crossover.
it's like the macd predicts the crossover or something wierd like that.

thanks.

[OzWiz]

I use the standard MACD setting and only use it for Divergence against price. AKA ForexMentor Methods by peter bain. go see www.forexwealthbuilder.com for more info.

[RavenMM]

Yes, it is better, but only on the basis that the complete MACD with Hist gives you more info.

But, your comments seem to suggest that you do not understand what MACD is actually showing. Neither line shows the 20 or 50 mov av. MACD is an oscillator. The MACD line shows the difference between the 2 averages ( long subtracted from short).

You will note therefore that when MACD line crosses the centreline i.e 0, this coincides with the MA's crossing.

If this is really new to you, I suggest you spend more time learning what indicators show.

If however, I misunderstood what you were saying, my apologies.

[ampris2000]

i'm not really a macd user.
i already have the tools i use, but sometimes, just for observation, i'll look at other indicators while already in a trade. it never hurts to keep learning.

thanks.

[OzWiz]

I have found that when used with other indicators as confirmation, MACD is excellent for predicting price trend changes. if price is in an uptrend for example, but MACD over the exact same period is trending down, either in Histogram or crossover lives, then rice will usually do what MACD says. and break the trend line o the candlesticks chart.