Macd breakout

Discussion in 'Technical Analysis' started by maxitronixy, Feb 23, 2010.

  1. Macd breakout, but sometimes buying right at the crossover the crossover reverse and the breakout doen;t happen. should i buy right at the breakout?
  2. you are a retard...
  3. so are you.
  4. what i mean to ask is when is it safe to buy when the Macd gnerates a signal that may reverse?
  5. TA is total waist of time , watch the dollar , buy oversold , sell overbought.
  6. Do not rely solely on a MACD crossover to make your trading decisions. At the least, understand the context of price in terms of Higher Highs, Higher Lows / Lower Highs, Lower Lows. Understand the time of day (morning volatility vs. midday grind), influence of economic releases (this mornings consumer confidence at 10am erasing the up move of the first 30 minutes is a good example), understand support/resistance levels (if the stock/fut is breaking out on a daily level soon after the opening bell when the opportunity is ripe, your MACD crossover might have more credence then otherwise, don't have any stats to back that up just my opinion)....a bunch of things go into whether the MACD crossover breakout is going to be a false one or not.

    And you can still get all those things I mentioned right/in a favorable 'setup' and it's still a false breakout due to the unforseen, for example a comment out of the EU (believe it was 2/9 ES was about ready to move through the 1056 level presumably to test 1046 lows and a Reuters headline backstopping Greek debt bounces the thing....I betcha there was a false MACD breakout there).

    Just understand more things about the context of price action and then MACD can assist you, but not the other way around. my .02 cents.

    *edit: in general, a MACD crossover will work on a trend day/environment. So, maybe do some more research on things that lead up to trend days/environments. Earnings releases, upgrades/downgrades, break through a daily/weekly/hourly support level, etc.

  7. Thanks Thanks

  8. Any signal, anywhere, could reverse, there's no "safety" play, even in a price action signal.

    My stuff is EOD, and looks at numerous longer time frames-I can perfectly understand why daytrader's don't think TA has any relevance.

    Personally, I think the macd or variations can give a remarkable measure of the respective price action, and it's sentiment-but use a macd to get a better price, a better entry, based on what it is telling you about price action, certainly not blindly follow a given signal.