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heading up at the same time, that is a divergent indicator as to where the price is going to move next. A person using the MACD in this way would acquire the stock, trusting the MACD to be providing a buy signal prior to the stock following suit and moving higher. As with any other crossover signal, the MACD is prone to providing multiple signals. The more volatile a security, the more frequent (and less reliable) these signals will be. If you are a very active trader, you can use multiple signals as an opportunity to trade the stock more frequently and in both directions (that is, both the long side as well as the short side). The symbol OIH (Figure 5.20) provides an illustration of this, since there were three signals given in a relatively short time period: rst a buy, then a sell, then another buy. The most powerful MACD signals are preceded by relatively quiet price activity. If a stock is moving along in a relatively tight channel and then gives a clear MACD signal, it is often an indicator of an important price change. AG Edwards (symbol AGE) was trading for months in a tight range of just a few dollars (Figure 5.21). In mid-March, even though the prices did not seem to be doing anything particularly unusual, a MACD signal was generated to buy the stock. Although it took a couple of weeks before any breakout occurred, the subsequent movement was signi cant, and the MACD gave warning far in advance of the actual price move.

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(2.1.108)

The above integral can be solved by the asymptotic method. For large k, contributions of the integral come from regions where (x', y') is close to (x,y). Expanding f(x',y') about (x,y),

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Traditional technology is available through timber framers located in many areas of the United States and Canada In a 1988 structural evaluation report, we concluded that the large second oor assembly hall of the Chowan County Courthouse in Edenton, North Carolina (c1767), could be used for public occupancy if the area was posted to limit the number of people to 200 A de ection limitation of 1/360th of a span governed the design, producing a bending stress as high as 2292 psi in large, dense southern pine timber oor joists and beams In 1991, we reviewed the oor structure of the 1917 Walker Building at the State Hospital in Concord, New Hampshire Assuming a reasonable set of design values equivalent to No.

f(x', y') = f(x, y)

u = k(x - x') v = k(y - y')

(2.1.109)

(2.1.110a) (2.1.110b)

JJ dudv exp [iU(qx + aqz) +iv(qy + f3qz) + 0 (l)])

(2.1.111) (2.1.112)

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Indicators can sometimes take on an almost clairvoyant quality about them. The reason is that indicators provide a different insight and representation of the underlying price movement that is not visible by simply looking at the price chart. In Figure 5.22, the stock of the Chicago Mercantile Exchange (symbol CME) had been steady in July and August, drifting downward late in August. In spite of this anemic behavior, the MACD provided a crossover to the upside. This crossover preceded not just a very large up movement, but it speci cally preceded a single-day movement of 20 points. There is another way you can view MACD information, and that is by the use of a histogram. The MACD histogram is computed in the same way, but instead of providing two lines, it illustrates the difference between the two lines with positive bars (above the 0.00 line) or negative bars (below the 0.00 line). Figure 5.23 shows an example of a MACD histogram. Because the bars are different and the transition from positive to negative (or vice versa) is so obvious, this representation of MACD movement makes it much easier to spot crossovers. Figure 5.24 shows the analysis of a stock with a MACD histogram and a 2-line MACD stacked on top of one another. This makes it easier to understand how these two studies correlate. In the 2-line study, when the black line is beneath the dashed trigger line, there are negative bars

+ aqz)o(qy + (3qz))

(2.1.113)

1D SR southern pine, based on examination of wood samples obtained from the building, we concluded that the existing 7 11 timber beams were adequate to support a live load of 86 psf, which is well within the 50 psf required for of ce occupancy The live load de ection limitation of 1/360th of the span controlled the design Of course, we can conclude that this is a safe structure that meets minimum code requirements The calculations were based on reasonable assumptions of design values In 1985, half a dozen oor joists from the 1903 Montague Building in Raleigh, North Carolina, were removed from the building and tested to destruction Of the.

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dad{3 o(qx+ a qz)o(qy+{3qz) p(a, (3) (2.1.114)

(2.1.115)

[a + (32 ] IC"(0)1 exp - 2h IC"(0)1

(2.1.116)

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