MACD is an excellent tool in predicting future price moves. Romik also used it on the hourly to catch the upward turn in the ES yesterday that continued today. He was off in his prediction of how far it would run, but he was able to predict that prices would turn up. MACD reflects the sentiment of traders, and especially the larger traders who have an idea what is coming up. In the hands of someone capable like Romik it is a fantastic tool.
--Or this call that I made on Nov 1,2007 which was largely based on MACD analysis "My macroview is that we are entering a multi year Yen rally against the dollar and a multi year bondrally. I am already long Yen futures and will be monitoring closely to get long treasury futures. Nov 1, 2007"
I dont trade with indicators either but you really need to have your process nailed to be successful,which these guys seem to have done
Right because if election results turned out a different way and GBPUSD dropped 300 ticks then what would they have to say? Don't get me wrong, I also profited (at the time) off the GBPUSD strength last night - but to think any kind of "system" had that nailed is a bit ridiculous. It ripped 100s of ticks basically on a binary event.
I agree, yet weekly divergence had nothing to do with election outcome as gbp shot up 1000 pips prior to the event.
didnt mean macd nailed the election results lol just commenting on the importance of having a process which most people don't have
There is always someone out there with more information than us or quite simply with more money willing to bet on market's reaction to an event. They would position prior to an announcement and that can be seen in MACD. It's not crystal ball of course, that's where trade management comes into play.
Observe rising histogram pattern prior to the upside and also Heiken-Ashi candles before upside are of bullish character too. So both suggest strengthening price action before the announcement. If I was to trade short term on that occasion I would have been long. It's not 100% of course