Letters To S&C by Technical Analysis, Inc.
MACD AND AROON
I consider every article written by Barbara Star a must-read. She’s my favorite S&C writer and I use her technical ideas to guide me.
Regarding her most recent article, “Zero In On The MACD” (S&C, May 2016), I am trying to figure out the entry rules for this approach. I know that:
1. The price needs to be above both moving averages—the 34 should be above the 55
2. The MACD or PPO should cross above zero.
But here is my question: Should the aroon-up also be hitting 100 to indicate that a trend has begun?