Tuesday, November 15, 2011

Momentum seems to agree

Both MACD and Wilder's RSI are considered Trend Quality indicators, meaning to confirm a trend's quality, they should follow it by making higher highs with the trend, when both MACD and Wilder's RSI are moving in the opposite direction of the trend, there's no confirmation and the trend is not likely to last.

Of course this is short term trend analysis, but taken with the last post, I think it's important to see. The MACD Histogram is in blue and Wilder's RSI is in white.

 DIA

 IWM

 QQQ

SPY

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