Thank you for the replies. I am still unclear on the Williams R exit strategy...is it on the cross back from extremes and sometimes the 50? On the entry side....the entry is taken on a zero line macd fast cross? What are the moving averages used ~ 20 and 50 period? On the stop topic it seems that with the EOD timeframe the final hard stop is your capital in the trade or what ever your losses are until the decision (price action/external, macd or williams) is made to exit. Very interesting thread. Regards, LS
LS: 1) The Williams %R is redundant some times. MACD fast line goes below slow usually at the same time that %R goes below -50%. %R is observed for exit if it goes ahead first, trying to keep larger profits. %R is more volatile since reflects closings in relation with the highest high/low of the las 14 bars. Closings getting away from extremes is significant. it produces additional whipsaws, but if the move of the security was big and prolonged, why not take profits on pause or weakness? re-entry on the trend takes pennies on commissions for securities and a couple of pips on Forex. 2) "...On the entry side....the entry is taken on a zero line macd fast cross?" YES, if it was under the zero line. And any time that goes above the slow line WHILE MACD IS AVBOVE ZERO LINE. The goal is to take the wave of up moves any time MACD fast line is above the slow while MACD itself is above the zero line. It seems insignificant but reassuring. You now know three things: a) that you are with the trend. b) that your position is gaining ground, and c) that you will have a profits more often that not. Over the years, people ask ...Why not stay long all the time MACD is above zero, and short when it is below zero? That is a valid point and less stressful way of trading. It is a gentle way perhaps on stocks, but not on Commodities and certainly not on FOREX where we experience brutal moves. 3) "...What are the moving averages used ~ 20 and 50 period?" a) the fast is a 13 day exponential b) the slow is a 25 simple moving average. No significance in particular, but a) looks good and less monotonous on the chart b) visually tells you whether the pair is trending up or down, depending which line is above/below. c) on up/down moves some people re-enter when the closing comes back to the slow average. 4) "...On the stop topic it seems that with the EOD timeframe the final hard stop is your capital in the trade or what ever your losses are until the decision (price action/external, macd or williams) is made to exit. Yes. Best! mF
FOREX signals, April 27, 2007 Well, well... LONG again the EURJPY and GBPJPY. Looks like the Yen is weakening again against the dollar, euro and pound. We'll see. Have a nice weekend all! mF.
FOREX Signals, April 30, 2007 End of the month signals. In retrospect they were remarkable good. On the open positions: EURUSD still over 300 pips USDCAD still ahead about 545 pips (SHORT) On the ones closed during the month: GBPUSD + 556 pips AUDUSD + 528 pips. EURJPY + 586 pips GBPJPY + 847 pips Please keep in mind that the whole thing is an exercise and for illustration purposes only. Forex trading is a very risky endeavor. Best! mF.
mF, How would you have traded the mid-June'06 to September'06 zero line MACD cross signals (2-3 I think) on the USDCHF. How would you have read the exit...or just hold because the stop was never hit (assuming the stop is 300 to 400 pips)...thks. ls
quote from longshort247: mF, How would you have traded the mid-June'06 to September'06 zero line MACD cross signals (2-3 I think) on the USDCHF. How would you have read the exit...or just hold because the stop was never hit (assuming the stop is 300 to 400 pips)...thks. ls ______________________________ Caveat Emptor: Viper will say that this is hindsight, and it is. You selected a terrible churning period, at least 8 chops. Roughly will look like this and without stops being hit, since the pair went nowhere: 12-Jun 12344 29-Jun 12363 19 13-Jul 12292 6-Jul 12284 -8 short 17-Jul 12331 27-Jul 12389 58 10-Aug 12340 1-Aug 12258 -82 short 13-Aug 12393 17-Aug 12321 -72 24-Aug 12393 28-Aug 12321 -72 5-Sep 12290 29-Aug 12279 -11 short 6-Sep 12337 20-Sep 12506 169 Total 1 Net of 1 pip if you include the 9/6-9/20. To that you subs tract 8 commissions (the spread), plus or minus any swap debit/credit. Hopefully, the other pairs were trending. Any error is unintentional. Best! mF