Money manager who created the MACD
Gerald Appel
Gerald Appel (born 1933, New York) is an American money manager and newsletter writer who developed the Moving Average Convergence/Divergence (MACD) indicator in the late 1970s. He founded the newsletter Systems and Forecasts in 1973 and Signalert Asset Management, and managed client money for more than 35 years before retiring in 2012. He has written 17 books on investing and market timing.
What they argue
- Typical investors follow trends rather than lead them and so arrive late; disciplined, rules-based timing tools are meant to correct that.
- Quantitative technical tools should be used primarily to reduce risk, not only to chase returns.
- Practical timing models (momentum, breadth, seasonality, relative strength) can serve short-, intermediate- and long-term investors alike.
Sources
Summaries are Be The Puck's paraphrase of public material. Be The Puck has no affiliation with the people listed.
Books and papers
- Double Your Money Every Three Years (1974)
- Technical Analysis: Power Tools for Active Investors (2005)
- Opportunity Investing (2007)
MACD above zero
Rule and full recordTrend following · daily
MACD above zero simply means the 12-day EMA is above the 26-day EMA: a classic fast/slow crossover.
Best risk-adjusted results against buy and hold:
MACD signal-line crossover
Rule and full recordMomentum · daily
The most common MACD signal: bullish when the MACD line crosses above its 9-day signal line.
Best risk-adjusted results against buy and hold: