Did your precious MACD get you SHORT between 870 - 872 resistance area on Friday? Exactly. That's why pros don't use MACD. It doesn't work & is irrelevant. GL!
Yes.. major 15 min TL broken overnight... I haven't seen anything newsworthy to have caused such a drop.. so YES the pros see these same TL's and MACD, at least on the hourly.. Maybe this thread caused the melt-down?... LOLLLL!... right.
Check the ES Greenhorn thread.. http://www.elitetrader.com/vb/showt...230#post2394230 Still getting to know ES trading, but the answer to your question is "yes".
Let me add a bit to that... I took the trade MAINLY becasuse SP was close to 875.. The MACD was just a helper saying "there is next to no gas in the tank". I never trade even MACD crossovers until the price does something actionable... No wonder I am losing so much!! LOL..
I just signed up for this site, I wish I had seen your question earlier. More importantly than the MACD, which is part of this any way, you have an ascending wedge which is a bearish price pattern and it was coming to its apex. As you can see, it has broken down already and pulled a typical retest, which tries to rally to the the apex-usually falls short. Tht point is a great second chance shorting opportunity. I just wrote a post about using MACD divergences on my site tonight ironically. Remember, wedges retrace their base, so your downside target here is around $7-$7.50. I wrote some custom accumulation/distribution indicators and on the hourly chart they made huge negative divergences at the 4/9 highs. Anyway, it's already in the process of lower highs, lower lows-it's a short, even now and especially on any rally attempt, but I doubt it gets far. http://farm4.static.flickr.com/3601/3475148998_9200143a77_o.png