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2002issue C091-3

Weekly highs and lows as trend gates

This editorial lesson treats last week's high and low as a portable weekly gate. A close through the gate writes a trend hypothesis, the first retest of the broken line is the location to study, and a MACD histogram that agrees or flips is the early warning that the hypothesis is still alive or already failing.

  • Project the prior week's high and low forward as weekly resistance and weekly support so the coming week has a defined gate.
  • Treat a daily close beyond that gate as breakout confirmation that starts a trend hypothesis, not as proof the move is finished.
  • After the break, study the first retest for role reversal and read the MACD histogram for agreement or a rollover that warns the hypothesis is failing.
  • Use those weekly extremes as a multiple-time-frame cue, just as an intraday chart can use the prior day's high and low.
Entries in this reading3 entries
Current trackMACD115 readingsSupport and resistance170 readingsBreakout confirmation172 readings

Last week's high and low as a weekly gate

This editorial lesson treats the prior week's high and low as a portable weekly gate. The coming week's key levels can be defined by projecting the prior week's high forward as weekly resistance and the prior week's low forward as weekly support.

Daily or intraday entry and exit signals can be read against those weekly extremes so a shorter chart inherits a higher-time-frame location. That reading is a multiple-time-frame cue. On an intraday horizon, the prior day's high and low can serve the same support and resistance role that weekly extremes serve on a daily chart.

Breakout confirmation, role reversal, and the histogram

A daily close beyond the prior week's high or low can be treated as breakout confirmation. It starts a trend hypothesis. It is not proof that the move is finished.

Once weekly resistance is broken it can later act as support. Once weekly support is broken it can later act as resistance. That role reversal is why the first retest of the broken line is, in this editorial reading, the location to study.

The MACD histogram is the gap between the MACD line and its signal line. Positive or negative readings can confirm direction. When those readings roll over, the histogram can flag a momentum shift.

A June S&P 500 futures sequence

On the June S&P 500 futures chart, the week beginning 19 February 2002 supplied the high and low projected as the following week's references. Monday traded through that projected weekly resistance. Later sessions retested the former resistance as support. Tuesday traded near the prior week's high. The MACD histogram was positive and rising.

In the next weekly window a Monday close above the prior week's high while the histogram was still rising kept price and momentum aligned with the upside. The absence of a retest of either weekly extreme removed an obvious location-based entry.

One week later, price stalled at the prior week's high while the histogram rolled over, consistent with a momentum shift and a possible top. Mid-week a break through weekly support plus a turn of momentum to negative was followed by a next-day retest of the broken support that closed on the session low.

Weekly high as a gate on June 2002 S&P futures

Daily closes on the June 2002 S&P 500 pit contract show last week’s high near 112500 giving way in late February, then holding as support while price ran toward 117500. A trader should watch that first close through the prior week’s high and the retest of the same line. Closes were read from the eSignal candlesticks; 114210 is the printed last quote, and the two weekly gates were read from the horizontal lines drawn on the 110000 and 112500 grid.
Daily closes on the June 2002 S&P 500 pit contract show last week’s high near 112500 giving way in late February, then holding as support while price ran toward 117500. A trader should watch that first close through the prior week’s high and the retest of the same line. Closes were read from the eSignal candlesticks; 114210 is the printed last quote, and the two weekly gates were read from the horizontal lines drawn on the 110000 and 112500 grid.June 2002 S&P 500 futures (SP M2) · Daily · 2002-02-14T00:00:00.000Z to 2002-03-27T00:00:00.000Z

Closes digitized from daily candlesticks to the nearest 50–100 quote units (about one index point). The contract is plotted in eSignal’s price×100 scale. MACD(12,26,9) sits in a separate pane on the source chart and is not mixed onto this price scale.

When weekly support still caps rallies

During the week of 19 March, price stayed below support, failed to reclaim the prior Friday's high, and later printed a new low. The old weekly low capped rallies for three weeks. The MACD histogram stayed negative except for one bar before the decline resumed.

That stretch illustrates why a trend-change reading waits for the key weekly level to break. An editorial reading is that one contrary MACD histogram bar is not a trend change while weekly support still holds as a cap.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
28 of 80 in the MACD track
20021-3 pp.Next on MACDConstructing channel-normalized Fisher reversal signalsMarket prices are described as lacking a Gaussian probability density, contrary to the common modeling story that about 68 percent of samples fall within one standard deviation of the mean.
All readings on this track · 80 readings
  1. 1988Rebuild MACD-Mo and MACD-H before treating them as signals
  2. 1989Four-span MACD lookbacks as perishable parameters
  3. 1989Weekly then daily MACD confirmation on individual stocks
  4. 1991Regime-gated MACD and stochastic rules inside a checklist
  5. 1991Constructing MACD signal lines and divergence tests
  6. 1991MACD parameter order and cycle phase lag
  7. 1992Lengthened bond MACD as an equity regime filter
  8. 1992Long-horizon MACD construction from paired exponential averages
  9. 1993Constructing a signed ten-point trend filter
  10. 1994Constructing lag-reduced double exponential averages for MACD
  11. 1994Seeding DEMA2 filters to build a MACD signal
  12. 1994Constructing MACD from lag-reduced exponential averages
  13. 1994TEMA1 from nested exponential averages, then a two-horizon MACD
  14. 1994Constructing entry and exit on a relative-strength MACD
  15. 1994Constructing a relative-strength MACD crossover spreadsheet
  16. 1995Consensus presignal filters for Relative Strength Index, MACD and the Stochastic oscillator
  17. 1997Confirm the MACD turn with price, then exit on the histogram
  18. 1997Reconstructing a stochastic oscillator, MACD, and a triple-smoothed oscillator
  19. 1997Moving-average windows before crossovers and MACD
  20. 1999Second-stage MACD on relative-strength inputs
  21. 1999Constructing MACD from exponential-average spreads for crossover and divergence
  22. 1999Coding candlesticks into numeric indicators
  23. 2001Second-low confirmation with a percentage oscillator and money-flow filter
  24. 2001Constructing MACD from exponential average spreads and a signal line
  25. 2002Separate bounded and trend-following oscillator rules
  26. 2002Sort the regime before assigning MACD and stochastic jobs
  27. 2002Building classic divergence filters from RSI and MACD
  28. 2002Weekly highs and lows as trend gates
  29. 2002Constructing channel-normalized Fisher reversal signals
  30. 2002Affine-price and the Fisher transform as a constructed companion to MACD
  31. 2003Regularized EMA construction with a MACD line and a thrust oscillator
  32. 2003Curvature-penalized exponential averages versus MACD
  33. 2003MACD, moving averages, and a trend filter as one timing system
  34. 2003Fractional MACD and linear-regression reversal construction
  35. 2004Weekly MACD-histogram timing of bear-market rallies
  36. 2004Candlestick triggers filtered by MACD divergence
  37. 2004Staging energy-complex tops with trendline, breakout, and MACD
  38. 2005Selling climax holds versus fails
  39. 2006Treat a sideways Wave as permission before a breakout
  40. 2007MACD with a Stochastic oscillator for spotting trend reversals
  41. 2007Rebuilding an S&P 500 fifth-wave count after a broken target
  42. 2007Constructing MACD, RSI, and stochastic confirmation for futures
  43. 2007MACD histogram divergence needs a confirming close
  44. 2007Write the plan as a stack: ratio, boundary, then oscillators
  45. 2008MACD divergence and Stochastic oscillator confirmation on lumber futures
  46. 2008Assign confirmation, timing, and a stop before a currency pair is tested
  47. 2008Confirm the ten-bagger launch path before the MACD exit
  48. 2008Reading the offloaded evidence file
  49. 2008A Leader companion for MACD direction warnings
  50. 2008Relative strength exits with MACD averages and RSI
  51. 2008Assign one job per indicator in a three-screens rule set
  52. 2008Sequencing RSI, MACD, and average crossovers
  53. 2010Constructing the Schaff Trend Cycle from MACD and a dominant-cycle window
  54. 2010Schaff Trend Cycle as a MACD and Stochastic oscillator combination
  55. 2010Combining Relative Strength Index, the stochastic oscillator, and MACD as slope filters
  56. 2010Short-term wave and ratio clues without direction calls
  57. 2010A precise pullback entry and an unplanned profit-protection exit
  58. 2010Filtering MACD false signals with trendline breaks
  59. 2011Vendor feeds as an input variable in a MACD evaluation
  60. 2012Out-of-the-money versus in-the-money option sensitivity to implied volatility
  61. 2012MACD window tuning as hold-time control
  62. 2012Combining a moving-average crossover with MACD and support-resistance
  63. 2012Testing a published MACD entry with a histogram and signal-line agreement filter
  64. 2012Treat sample systems as a lab before live rules
  65. 2013Constructing moving averages and MACD from one price series
  66. 2013The next-bar price that forces a MACD signal-line cross
  67. 2013Constructing next-bar MACD reversal prices
  68. 2013Constructing inverted MACD reversal prices
  69. 2014Shared-filter combinations of the stochastic oscillator, MACD, and RSI
  70. 2014Square-root lookbacks for combined MACD and RSI
  71. 2015Audit open interest and trend before trusting oscillator crossovers
  72. 2016MACD without a signal line, confirmed by moving-average trend filters
  73. 2016Use RSI, MACD, and a moving average as a market-health consensus
  74. 2016MACD line versus histogram is a display problem first
  75. 2017Weekly and daily MACD on a single daily chart
  76. 2017Weekly and daily MACD as a stacked momentum filter
  77. 2017Nested weekly and daily MACD from paired EMA spreads
  78. 2018Weekly and daily PPO scale versus MACD, with bounded RSI and stochastic readings
  79. 2018Constructing a weekly and daily percentage price oscillator
  80. 2020Constructing Wyckoff tape reading with MACD, moving-average, and RSI filters
By fieldTrend and channels181 readingsBy year200284 readings
All 115 readings tagged MACD
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