Connacher Oil & Gas Ltd CLLZF

RE: MACD

[Wellsitter]

MACD stands for "Moving average, convergence, divergence and is an algorithmic calculation based upon trailing time-lines. It is a calculation of the moving averages of the previous price action and the two lines (leading indicator and trailing indicator) converge and diverge (get closer together or farther apart) based upon price action, momentum and time spacings specified to the algorithm. If you use the "default" settings in most chart builders it will specify a 12-26-9 time frame. I experimented over the years and developed the 6-7-12 algorithm specifically for trading currencies which is a lot like swimming with sharks while you're bleeding profusely. You need to be right on top of the indicators if you are trading short-term as I routinely do. Many of my currency positions I will trade in and out in under an hour.

The 6-7-12, I have found, is an excellent "predictor" indicator for use in stock situation trading as well. It actually goves fore-warning of momentum changes in both directions. Note the MACD histogram at the bottom of this chart of CLL. When the thick line (leading indicator crosses the thin red line, there is a momentum pop. Another again when the thick line crosses the "0.00" line. The most impressive pop comes when the thin red line crosses the "0.00" and all indicators are pointed upwards at 45° or higher.

Sorry, I don't know how to imbed charts (I thought it was <img_src=the URL> but that doesn't seem to work anymore) so please cut and paste the link to take a look.

https://stockcharts.com/c-sc/sc?s=CLL.TO&p=D&yr=0&mn=6&dy=0&i=t86033680457&r=7598