Ashwani,
This happens because MACD by its very nature of construction is a trending market indicator whereas Stochastics or RSI are oscillators meant for trading / sideways markets. So they are bound to be in disagreement at the market turns.
How I handle this is I use Stochastics or RSI as a set up indicator...so when they are in OS area for less than 5 bars or they are exhibiting positive divergence, I get on my pivot based trend indicators and make entry and keep stoplosses as per the charts....I dont use MACD as I find my price action methods give me more early and definite entry signals.....
Hope the above answers your question...
Smart_trade
This happens because MACD by its very nature of construction is a trending market indicator whereas Stochastics or RSI are oscillators meant for trading / sideways markets. So they are bound to be in disagreement at the market turns.
How I handle this is I use Stochastics or RSI as a set up indicator...so when they are in OS area for less than 5 bars or they are exhibiting positive divergence, I get on my pivot based trend indicators and make entry and keep stoplosses as per the charts....I dont use MACD as I find my price action methods give me more early and definite entry signals.....
Hope the above answers your question...
Smart_trade
thanks