Registered User
Joined: 10/7/2004
Posts: 114
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What does it "mean" when Stochastics and MACD are at opposite ends of the extreme from each other? Or what does this say about the momentum of price??
Currently Morgan Stanley [MS] is at 61.47 and stochastics[5,3,3] and MACD[12,26,5] are opposed to each other Oversold and Overbought respectively.
I am thinking that "energy" of this stock is conflicted and about to break down. I noticed that Oct-Dec '05 TSV seemed be horizonally divergent from prices bullish advance...there was not a match up in proportional energy and direction.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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InvestOvereTlme
You are comparing apples and oranges. When you look at
Stoc 5,3,3 and MACD 12,26,5.
Relative to Stoc 5,3,3 / MACD 12,26,5 is a much longer term indicator.
All it means is the stock has turned down and the short time frame indicator
"saw" it first.
Notice back in 05/19/06 Stoc shot up while MACD was heading lower. It
wasn't a divergence it was the shorter term indicator picking up short-term
strength.
To get more "speed" into the MACD you could use the histogram setting.
The alternative is to make the settings similar.
Stoc 26,3,3 or MACD 3,10,5 then they will look similar.
Thanks
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