| |  | | | | A Popular Indicator Put to the Test | |  | | Many traders look at charts and they add indicators to charts. Many fail to ask an important question, “does this indicator add value?”
In our newest article we ask that question. We tear apart one of the most popular indicators that’s added to charts and then we test it. The results aren’t surprising to us, but they might surprise you.
Check it out...
Testing is rarely talked about when looking at charts. Many traders will say something about MACD completing a bullish crossover and leave their analysis at that. To us, that’s an aberration rather than an analysis.
To complete an analysis, we should know whether or not the indicator works. By works, we mean whether or not the indicator beats a buy and hold strategy.
In this article, we address that point by testing the indicator. We look at what would happen if a trader followed every signal MACD generated over a fifteen year period, including the impact of commissions on the potential results.
The article covers:
• Exactly what MACD is and how it is calculated.
• How MACD can be used to generate buy and sell signals, both visually and quantitatively.
• Other ways, besides the most common, that MACD can be applied to trading decisions.
• The theory behind the indicator.
• A test using 15 years of data to ultimately answer the question of whether or not the MACD indicator is useful.
And more.
Read it here...
 | | |  | Trading Tips' parent company was recently selected as one of America's fastest-growing private companies. | | | | | | |
Tidak ada komentar:
Posting Komentar