Ask Colin

In your June 2002 Shares article on MACD, you said it was a powerful exit indicator. Can't it also be used for entries or at least to monitor developing opportunities?

In your June 2002 Shares article on MACD, you said it was a powerful exit indicator. Can't it also be used for entries or at least to monitor developing opportunities?

I am not sure you read my article correctly. MACD can be used for both buying and selling signals as outlined in the article. See the discussion of Brambles towards the end of the article for an example.

However, you are correct that MACD tends to give early signals, so it is better to use it as I do - to give me early warning of which stocks to watch closely and look for signals on the bar chart itself.

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