Using MACD for a buy signal

As I get back into the swing of things (pardon the pun) with my trading efforts, it is nice to see how many things continue to work from a trade process stand point. In the chart review that I have been doing this morning, I see a lot of the expected price moves like Gap Fill tests, moving average assaults, etc. I also continue to see many examples of how a simple approach can get you in and out of stocks with good entries/exit points.

For an example, I bring you the Daily chart (200 day time-frame) of $ULTA with MACD and Volume turned on:

ULTA_MACD_buyIn this example, there have been 3 good buy points based on using the MACD bottom that led to nice upward price moves. Nice and clean entries.

However, price now finds itself testing a Horizontal Support line from the lows in December 2012. A hold here above this $94 level, with a confirming MACD curl up for example, would be a nice starting place for a new longĀ  position.

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