Lets us have some fun with a skill test on how to read a popular technical indicator, the Moving Average Convergence/Divergence - better known as the MACD
We think the MACD is over-used and misinterpreted - so here goes
Question: The MACD signalled a "buy" on General Motors because?
(1) The red trigger line is above the MACD line
(2) The histogram is above the zero line
(3) Both the trigger line and the MACD line are both rising
(4) The buy is false because the trigger and zero lines are negative #'s
(5) All the above are wrong
If you selected (5) you would be correct – if not fellow readers maybe able to help you or you can also find out this and many more things at our Technical Analysis Level 1 seminar - to register go to: http://www.gettingtechnical.com/07_seminars/index.shtml
General Motors and the MACD
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