Naw, I don't believe in witches - just voodoo What can I say, I live in the south, more root doctors down this way. Now dem root doctors really know what ta do wid dem chickenfeet. Oh yea and wizards: gotta love that Gandalf the grey or is it Gandalf the white. I'm confused. Could it be, pattern failure?
So you get some inside information like IMClone is going to have some trouble and you have a bazillion shares and you do what? You sell. Why? Because you fear losing your money. You are about to enter the market on the long side and you are as certain as ever that it is about to take off and suddenly a bid for 10,000 shares pops up and puts you behind. You want in badly so you lift the offer. The numbers come out unexpectedly positive for housing and consumer confidence and Saddam Hussein hangs himself and the bonds start tanking and you cannot click the mouse with your greedy little hands fast enough to scoop up all the spoos or es you can. Every decision to buy or sell in the markets made by a human is driven ultimately by the emotions of fear and greed... after that human has considered the insider information, the order flow, the non-linear intermarket relationships, etc. All of the components you suggest factor in to one of two decisions... buy or sell. But after all the components have been digested, the bottomline decision is, "am I going to make money if I buy"... greed, or "am I going to lose money if I don't sell"... fear. But the key word is 'after'. Just like the key word to your question is "theory". Btw, has anyone come up with an indicator or pattern that has stopped doing what it was designed to do? I mean triangles still show indecision, and despite what ScaleOut says, macd still shows momentum, etc. Just checking... you know, for the good of the thread.
Jordon -- your dogmatic opinion on oscillators has convinced me that you are certainly a loser when it comes to trading. Spend another 15 or 20 years studying these indicators and get back to me. Interesting that you haven't taken me up on my challenge. Simply support your opinion on MACD with proof. Unfortunately ET seems to have an abundance of people like you who mouth off and can't support what comes out of it. I would suggest you spend less time starting arguments and more time studying the markets you trade.
I understand what you mean and there is some truth in there. However, may I offer the example of the power drill. When working properly, the power drill is designed to drill nice clean holes. But alas it has come to pass that laser is now used to perform the same job, and a certain population does not know how to use the power drill. When given the power drill, they mess up with it. So I come along and upon hearing these people say, "the power drill doesn't work anymore", I ask, 'is it the power drill, or the user? Show me how the power drill doesn't work anymore." Upon inspection of the power drill, it works just fine. It was built to drill holes... it still drills holes. But because you cannot just put the bit to the wall and drill away without actually reading the blueprint or having some idea about how to use a power drill, the cry is " power drills don't work anymore." But the bottom line is, the power drill still works. It does what it was intended to do.
ScaleOut was that you who said to bert something about name-calling? My my, how does it go... about glass houses and throwing stones? Grow up little man. You cannot make money using one of the easiest indicators out there so I guess no one can right? No one is arguing with your point that the macd as a mechanical method does not make money. What is your problem? You keep harping on a non-issue. I am not aware of price patterns being a part of the category of oscillators. I have defended price patterns also. You were incorrect about the macd not being a momentum indicator. Too bad for you. I provided proof that it is. You have yet to provide even one scintilla of evidence that macd does not demonstrate momentum now as it did before. Or for that matter, you haven't said anything of worth other than the macd does not make money when operated mechanically... which you have said repeatedly. How dull can you be? Maybe this will help... ONLY YOU ARE TALKING ABOUT USING THE MACD TO MECHANICALLY GENERATE PROFITS.
I'll jump in here for a minute. I have used macd and pattern breakouts for years. I'm laughing at how many of you missed the main point. I'm not laughing at you per se, just how many people missed the point and took the bait. The main point as I see it is that the tool still does what it always has done, you have to know how to use it. ScaleOut your responses have become acrimonious and ill-conceived. You are way off-topic as Jordan has alluded to, there is no one who is questioning your claim. Your idea of does it work seems to be can it operate as a mechanical system. That isn't what Jordan asked. As much as you might want it to be what he asked, it isn't. Perhaps you should start a new thread about the macd, or you can find some already in progress that you can tell your story on. I know I agree with you about the macd as well. Btw, I trade the es using 2 macd's of different lengths. Of course there are time limits et al, but the macd's are the only indicators making the decision to enter. I cannot speak for Jordan, but I know I make excellent money both long and short term. Those decisions to enter are all based on greed... lol... oh I crack myself up.
InandLong Of course you make excellent money both long and short; doesn't everyone on here? Those who make money trading don't brag about it, fella. I will continue to believe that macd is the most overrated technical indicator in use today.
So what the hell are "you" doing with a chart? What the hell are "you" doing with all the analysis? Oh... sorry, you only trade with TOS data from the exchange eh? What? My handle after Gann? Look at your ass, you're naming yourself after a Hindu Deity... wasn't Vishnu one of the main gods of preservation? You're a disgrace to the figure! It's not me who's got the name wrong, it's you! How dare you call and in a way represent Lord Vishnu in the Internet!!! Or wait... are you actually Lord Vishnu himself??? Before you study the market, why don't you study your own religion, A-hole!!! ------------------------------------------------- LOL... I'm just kiddin', you know I love you!!!