Technical trading using MACD

By runcer, March 31, 2016

I have traded for a few years now but mostly by gut feeling and shooting from the hip. I am trying to be more informed on when to get into and out of a position, possibly by looking at momentum indicators such as MACD. My question is this, when looking at the daily chart the momentum is down while the weekly chart says it is up, which one do i believe? (TSX:POT as an example). I am not a day trader, I like to buy and hold and possibly get into things with a reliable dividend. Any guidance on this much appreciated.
Joe

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Travis Johnson, Stock Gumshoe Recent comment authors

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Travis Johnson, Stock Gumshoe
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๐Ÿ‘12107

If you don’t want to trade frequently or get in and out based on changes in momentum or any of the technical indicators, then there’s no real reason to focus on those technical indicators when you’re buying — you might just have a different mindset, and that means that examining the fundamentals is more likely to be useful for you: Studying the potash market, trying to understand the potential future scenarios for POT and the sustainability of their dividend, and deciding whether you are comfortable with the valuation that the market is assigning to Potash at today’s price, or at… Read more ยป

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Travis Johnson, Stock Gumshoe
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๐Ÿ‘12107

Sorry, I went off a bit long-winded there for you — you were asking about daily or weekly momentum and I got full of blather. I think the key is being consistent and using the same indicators and time periods so you develop a strategy and technique that you’re comfortable with — there’s an interesting article about one method here, but mostly that style of trading doesn’t appeal to me so I don’t look into it very closely.