Long
Term Trend Checklist (under 20
trading days)
Checklist
calculations
| Stock
Check List - DJIA long term
trend checklist |
| Stock:
DJIA |
BUY/SELL
Rating: -5
|
Date:
April 22nd, 2005 |
| Indicator |
Confirming |
Negating |
Trendlines
(read report)
|
|
Downtrend |
50
& 100 day SMA's
(read report)
|
|
50 & 100 day cross
SMA down |
|
MACD
(read report)
MACD-H
(read report)
|
|
MACD downtrend
MACD-H downtrend |
|
RSI (21)
(read report)
|
|
Downtrend |
| __________________________________________________________________________ |
| Points: |
0
positive |
5
negative |
Comments:
Overall,
the DJIA is in a long term downtrend.
This is supported by the medium
and lower term trend indicators.
Also this fits a classic down
slope with an ongoing series of
lower lows. At this point there
is no real indication of a turn
around. Based on historical cyclical
events, it should continue to
downtrend into August - September.
The
MACD method is a trending indicator,
telling us whether a stock is
in an uptrend or a downtrend.
The MACD proves most effective
in trending markets rather than
choppy, sideways markets.
There are two main sets of signals
generated by the MACD: crossovers
and divergences.
The
MACD Oscillator is composed of
two lines: the MACD line, which
is the difference between two
exponential moving averages (EMAs)
and a signal line, which is an
EMA of the MACD line itself. The
signal or trigger line is plotted
on top of the MACD to show buy/sell
opportunities. Typically, MACD
uses a 26-day and 12-day EMA,
based on the daily close, and
a 9-day EMA for the signal line.
