postmortem analysis of LUPIN 8 % fall today
caution :suggested idea is a generic idea .There are variations to this analysis and more indicators have to be applied to precisley time the events
i have used 100-50 MACD along with 3-6 MACD as indicators to time the events
i have ignored 12-26 MACD to make it less confusing
Rule 1
when 100-50 MACD is above signal line , every dip(towards zero line) in 3-6 MACD will be bought into
we can expect significant up move whenever price is bouncing from EMA support
Rule 2
when 100-50 MACD line is below its signal line, every rise in 3-6 MACD (above its signal line or zero) is sold into
we can expect the prices to stay RANGE BOUND or FALL
1.when to buy based on these 2 MACDs
wait for 100-50 MACD to cross its signal line and sustain for atleast 3 days .buy a stock when 100-50 is above signal line and 3-6 is near zero line and when price is bouncing from EMAs.there should be no price MACD divergence
2.When to avoid buying
when 100-50 MACD is below signal line , the stock is unlikely to give signifcant up move
todays LUPIN fall - 100-50 MACD was negative . so we could have been cautious .
i have used 100-50 MACD along with 3-6 MACD as indicators to time the events
i have ignored 12-26 MACD to make it less confusing
Rule 1
when 100-50 MACD is above signal line , every dip(towards zero line) in 3-6 MACD will be bought into
we can expect significant up move whenever price is bouncing from EMA support
Rule 2
when 100-50 MACD line is below its signal line, every rise in 3-6 MACD (above its signal line or zero) is sold into
we can expect the prices to stay RANGE BOUND or FALL
1.when to buy based on these 2 MACDs
wait for 100-50 MACD to cross its signal line and sustain for atleast 3 days .buy a stock when 100-50 is above signal line and 3-6 is near zero line and when price is bouncing from EMAs.there should be no price MACD divergence
2.When to avoid buying
when 100-50 MACD is below signal line , the stock is unlikely to give signifcant up move
todays LUPIN fall - 100-50 MACD was negative . so we could have been cautious .
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