How to Screen for Stocks Using the MACD
Dr. Thomas K Carr
In my previous two articles on the MACD indicator, I showed you several techniques using the MACD to determine the trend of the market and opportune buy and sell entry points. I showed you a variety of bullish and bearish trend signals whenever MACD crosses above and below the 0-line. I described how the MACD Histogram can be used to determine bullish and bearish reversal in the market. And I described how divergence between price and the MACD can be a strong determinant of future price direction.
In this final article in the series, I’m going to show you how I use the MACD indicator to find a short list of stocks that are setting up potential buy signals. To do this, you will need a technical screening tool. There are several available today suitable for this purpose. I use Metastock and Esignal, both of which are prohibitively expensive for most novice traders. If you are on a tight budget, you can use the screening tool in Stockcharts.com. The illustrations below are from this tool.
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