Once I have made a selection of companies to follow I will implement my day to day trading strategy.___ I an effort to identify trends to follow I will observe indicators such as the short term moving and exponential averages as well as the MACD (Moving Average Convergence Divergence). ___The MACD is a tool used to identify trends in stock prices. It is the difference between the twelve and twenty six day exponential moving average.___ A positive value indicates that the value of the stock has risen more in the short term than the long term. ____ A zero value would indicate that the exponential moving averages are the same for the two periods. _____Negative MACDs show that the stock has gained less value in the short term than it has in the long term. _____To help with the interpretation of this number another value called a signal is plotted.____ The signal is the exponential moving average of the MACD over the past nine days. ___When the MACD is above this signal it indicates that the stock is building momentum and will likely continue to rise.________
When it is below this signal it indicates the opposite and it might be a good time to sell. _____These economic indicators will provide the basis for most of my decision making in my short term investments.
3.2 Companies