Discussion in 'Technical Analysis' started by exce26, Dec 18, 2001.
What is the best value for 5 min MACD?
TO use entry & exit point....
Just use the default value.
Iâve seen advanced traders spend hours or even days trying to find a custom setting for their stochastics or indicator, that will give them more of an edge. I applaud their diligent efforts, however I think practices such as this are a misuse of time. Think about this. 95% of the traders out there will just stick these indicators on their chart and use the default settings. The more traders who use these indicators at the default levels, the more signals will be taken at the same time on a global scale (ie when a %k crosses %d). So the huge overwhelming group using the indicator on the default settings will create a self fulfilling prophecy and move the market on their buy or sell signal. Keep this in mind when trying to tweak your layout or system.
WTF does anyone who has been reading charts for years in and out use indicators for anyway? They are an effect of price action. If you can't read a chart, you shoudn't be trading. Try to p/f the action like the floor traders used to do every 15 mins when the buzzer sounds. You will be a much better trader for it.
Price action is part of the story, so is volume, pattern analysis, reading order flow, S & R levels, intuition... and yes even indicators
thou shalt have no false gods before the market... not even price action
use the 2 min. MACD
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