macd warning - re: what's up//kesmet Be very careful when using the MACD in stocks that are rapidly falling to lower levels such as ERG, as the stock goes lower its daily move becomes less i.e. a 5% move at $1 is 0.05, 5% move here is only 0.007.
remember the MACD is only a moving average, as the stock falls rapidly and its daily move becomes less (but % wise the same) the MACD will start to rise, so take note before trading on this indicator, it’s a false signal.
what's up, page-6
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