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The Gap Study

Chapter 5

Momentum and trend: the stochastic and the MACD

What each indicator measures, how the method uses them to confirm an entry, and which rule helped most when it was measured.

The levels say where the entry is. The two indicators in this chapter say whether the moment is on your side: the stochastic looks at the last few days and the MACD looks at the trend of weeks and months. Their settings are inspired by the methodology of Joe DiNapoli, and both were measured before they stayed in the method.

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