The MACD Histogram zero line has been crossed by stocks of Santo Mining Corp (OTC:$SANP). The stock is currently trading at a price of 0.0015 with the MACD signaling a bullish trend.
The MACD Histogram is not an indicator in itself, but actually an indicator of an indicator. It is four steps removed from the price of the relevant stock. It is actually the fourth derivative of price:
- First derivative: 12-day EMA and 26-day EMA
- Second derivative: MACD (12-day EMA – the 26-day EMA)
- Third derivative: MACD line
- Fourth derivative: MACD-Histogram
What this means in practical terms is that chartists should keep in mind that the MACD Histogram is designed to anticipate signals in MACD, which is designed to identify changes in price momentum in the underlying stock.
We can also take a look at a few other key indicators for the stock.
First, we can take a look at the Relative Strength Index. The RSI is a momentum oscillator used to measure the speed and change of stock prices. It oscillates between 0 and 100, with readings below 30 signaling oversold and readings above 70 indicate a stock may be overbought. Currently, Santo’s 3-day RSI sits at 44.99, its 7-day RSI stands at 62.00, and its 14-day RSI sits at 66.25.
Moving averages give us an average stock price over a trailing given period of time. These are useful for detecting bullish or bearish trends, identifying peaks and valleys, and filtering out the daily noise of price changes. Currently, the stock has a 50-day moving average of 0.00 and a 200-day moving average of 0.00.
We can also take a look at the Commodity Channel Index. The CCI oscillates above and below a zero line, with most numbers falling between -100 and +100. Numbers reading +100 can signal overbought scenarios, whereas signals at -100 can signal oversold scenarios. Santo Mining Corp currently has a 14-day CCI of 48.57.
Finally, the Williams Percent Range is used as a technical indicator to measure when a stock is overbought or oversold. The scale oscillates from 0 to -100, with readings above -20 generally indicate a stock is overbought and readings under -80 indicate a stock may be oversold.
Featured Image: twitter
