MACD Long Basic Trade on FSLR Daily

FSLR Big Picture – MACD Basic Trade

  1. The major bullish trend line is holding up, showing that the bull trend is intact.
  2. During this bull swing of FLSR, there were strong gaps down. However, these gaps were closed after periods of accumulation without compromising the overall bullish movement.
  3. Finally, the recent up gaps proved to be good support for price.

FSLR Small Picture – MACD Basic Trade

(Learn: Gerald Appel’s MACD Basic Trade Setup)

  1. MACD crossed below its signal line and moved below the zero line. The bullish crossover of the MACD signals a long trading setup.
  2. As FSLR fell, it found support at an earlier up gap. Prices clearly bounced off the support.
  3. A second attempt to test the support was rejected strongly, leading to the bullish trend line break.

MACD Basic Trade Analysis

The larger picture shows FSLR in a healthy bull trend.

Upon closer examination, the support from the gap and the bullish trend line break bode well for this long MACD signal.

The Renko Chart Trading Manual

The Long View, 15th May 2013