Discussion in 'Technical Analysis' started by Fargo, Mar 5, 2018.

  1. Fargo


    Hi all,

    Anything specific I need to do to obtain the macd strategy shown here?

    macd on a settings of (12,26,1) & (5,15,1) will not appear due to the sma being 1, histogram does not show up, any workaround on that or..?

    Thank you.
  2. Xela


    First, the most important thing of all, for you, is to appreciate that "trying to copy something, some set strategy, that 'just works'," - far from being an appropriate way forward for anyone - is actually one of the five commonest mistakes of aspiring traders and one of the commonest reasons for "aspiring trader failure syndrome" (there's a little more about that in this post).

    Secondly, the next most helpful thing, at the moment, will be to think about how the MACD actually works, what each of the three figures refers to, how it's constructed, how and why it displays what it displays, and how and why it can/might/will be helpful to you/others. Among other things, if you do that, the reason the histogram doesn't show up when the third number is "1", with some softwares, becomes apparent.

    Thirdly, the system you're trying to look at is nonsense, and there are reasons for that.

    Fourthly, this page may help you to understand a little more about the MACD, though some of the sources listed in the post I linked to above will help you far more.

    Fifthly, note that the MACD is really terribly easy for the neophyte to misuse atrociously, use without understanding clearly (let's be honest: understanding it isn't trivially easy, as indicators go), and/or try to use it with wildly inappropriate settings for what they're actually trying to use it for (which they can very easily end up doing, especially if they make the mistake of following widespread forum and/or Youtube "advice"!).

    (I'm guessing that you're using MetaTrader? I'm happy to be mistaken about that, and it really is only a guess; but if you are, it may help you to know that that software platform doesn't display the MACD indicator correctly anyway.)

    Lastly, please appreciate that I intend this entire post helpfully rather than critically, and welcome to EliteTrader. :)
    Last edited: Mar 5, 2018
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  3. Starspa


    I have that so, I just lurk and learn. Thank you Xela for the patience and time you afford us syndrome sufferers.
    Xela likes this.
  4. Handle123


    ROFLMAO, this method been out few other times, I even think I saw a variation on this site. I know since mid 90s it been out, OMG 150-200 pips for stops, 2 or 6 losses in a row you will be heaving the system to trash bin?, nothing is 100%, when it gets into cycle chop, you be selling lows and buying highs. The main problem is it is tardiness, you are getting in way late and most likely on close of a one hour bar, that not good for MACD, but if you a beginner, to stay with trades that are in trend and lack of charting, I doubt you last a month. It be far better you learn charting, take 2-3 years before you start trading and learn charting like breathing and you will you can use a SMA and trendlines, get in much much safer and better by buying the lows and selling the highs. The best way to make money is not how you get in, but I know this is an ugly word but risk management is the key, and make sure you understand that Trading is a business first, it is not something you think most can do, people who last put in 10,000 to 20,000 hours of screen time is a reality and 0.001% are the ones who make 99.9% of the money, and I guarantee you, they not asking questions about one system.

    If you doing trading where chances are you ending in short amount of time less than a day, you have to get in early cause the stops have to beyond recent highs if you short or below recent lows if you long, so you can see true getting in early better be near the lows and highs on your "turn" of trend or better known as counter-trend trading. But take it from someone who lost for several years of learning to day trade till I got the hang of it in 1993, counter-trend trading, to do it "cheaply", is the hardest form of trading if you can't read charts and staying with trend trading for first few years of trading, but the system you show getting in late as I see it.

    If you see the little search button on top, put in "MACD" and check whatever comes up to 2007 and just start reading. And get books on chart reading, I believe @Xela posted a list of the books she started trading and I used the "bible" by Edwards and McGee,
    And most likely get it thru a library as it been out decades. If you have questions of what you read, most likely many on forum have same questions and you can post them here and experienced will answer.

    Good luck.
  5. Oh Xela, Xela, Xela...

    You're so kind, gentle, polite and politically correct. (Your mama taught you good!)

    Perhaps you should just say, "MACD is a 2nd derivative of price... and though popular, not a good trading tool".

    (Or if you don't want to say that, tell 'em I said so.)

    Last edited: Mar 5, 2018
    Xela likes this.
  6. Handle123


    Actually, over 50% of my automation uses MACD, but not as it is written or taught, it is like most books, always a chapter missing, but systems keeps track on how others use many indicators to better take other side when possible. And all my scalping systems rely on very slow indicators but chart patterns comes first, and often times indicators will have same chart patterns and they will develop their own unique patterns. So see how slooow can I goooo, I like lagging behind, let's me be the first one out and easier to go to the concession stand for popcorn. ROFLMAO LOLOLOLOL Thousands of different ways to trade, pick one and concentrate on only thing you can somewhat control, risk and how to get the breakeven plus 1 tick quickly.
    Jeffro72 and PennySnatch like this.
  7. Jeffro72


    As everyone has stated, as-is, it won't work long term and you'll eventually lose your $$$.

    It has too much lag and you'll get chopped out on the smaller price moves (which happen way more than the moves that will make you a profit). That's not to mention slippage and commissions.

    Keep in mind, every trader new and old, every trading institution, big and small, are all competing with each other. Only the very top tier are making money long term. And these organizations and individuals have usually spent thousands of hours or more developing a system with an edge. So a standard run of the mill MACD, though a good start, usually won't hold a candle to that top tier wind and will become blown out. RIP
  8. Fargo


    Hi Xela,

    Thank you very much for you post. I took everything you said into consideration and will defiantly act upon your suggestions and will read the books you have noted. I am currently reading alot of books, and studying alot everyday like a freak, too much money to be made in btc.

    Honestly though, i got into trading at first due to crypto. I am new to trading as you can probably tell. I started trading coins then switched mainly to bitcoin. Im not to sure if I would call it luck but, I started future trading it. I understand what I am doing is risky. Making $1,000 scalping a day for 5 days straight 2 hours a day. These scalps happen so many times a day though, but I am not that confident yet. I do not consider that luck, but I am no pro either, I am a noob, and I fully understand that. That Is why I joined this forum, to learn as much as possible and do bigger swing trades. I would say a good understanding of price action, support & resistance, and an indicator or two, and you can make a fortune off of the method I use. If someone has that great of success from the beginning, why not push it to the limit to see how far you can take it? However, I see potential in anything that I do. These small swings happen like nothing in btc its honestly laughable. I do believe ill probably fack up though, lmfao. I dont care how long it takes, ill sit on the computer all day for a nice scalp that will make me a grand or two. The thing is, I should not be making that much money in a couple hours being a beginner, I just shouldn't, but I am.

    I would like your input though, on the method I use. 5-15 min time frames..

    Go on tradingview,

    Open up a chart for xbtusd - bitmex

    Add the following:

    1. DSS Bresser Scalper by Shizaru
    2. 5-15 min Binary - V2
    3. & volume of course

    I have ninjatrader, but Im still new to everything.... dont get me wrong, I want to get into stocks as well. I just follow the money, thats all. Im not calling myself a pro or anything to anyone who posted, so I take all advice, I know that i suck, lol.
  9. Xela


    Sorry - nothing to offer, here: I've never traded cryptocurrency at all, and have no idea what the "DSS Bresser Scalper by Shizaru" is (but I'll try mine with courgettes frites and a glass of the Corton-Charlemagne, please).

    Someone who knows about these things may see your post and reply.

    If not, maybe try the Cryptocurrencies folder?

    Good luck!