Candles, WOM and MACD Charts
Although being more of a sniper/in-play trader, I do maybe two/three times a week pre-off trading and use the Candle/Volume/WOM/MACD charts when using the ladder interface. However, I have never seen it explained before about which one is which (Weight of Money [WOM] versus Moving Average Convergence Divergence [MACD]) lines? See the attached graphic. One is coloured darker blue and the other lighter blue. But most important, what is the significance of these, especially when they meet (one goes above the other and/or vice versa). I can obviously see that the dark candle indicates price moving out and the light candle showing price coming in. It's the significance of the two WOM/MACD lines I need explained.
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MACD is from the financial markets so it may help to study how it is used in those markets...
http://stockcharts.com/school/doku.php? ... gence_macd
From what I've read, WOM was useful in the past but not so much these days. In my opinion, WOM either follows a trend or tries to stop a trend.
http://stockcharts.com/school/doku.php? ... gence_macd
From what I've read, WOM was useful in the past but not so much these days. In my opinion, WOM either follows a trend or tries to stop a trend.