Chart 8.18 Monthly MACD and Major Market Trends: New York Stock Exchange Index, 1979-1988 Monthly-based, major-tern1 price and MACD charts generally reflect the usefulness of shorter- term MACD combinations for buying purposes and longer-term MACD combinations for selC ing purposes. The 19- to 39-day MACD combination did cross from above to below its signal line late in 1986, but without any negative divergences in either the shorter-term 6- to 19-day MACD pattern or the longer-term 19- to 39-day pattern, the first penetration might have been bypassed as a sell signal. It was actually touch and go as to whether the monthly MACD was able to avoid the 1987 crash, although weekly MACD patterns clearly did so.
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